eGain Announces Fourth Quarter and Fiscal Year 2025 Financial Results and $20 Million Stock Repurchase Program Expansion

Rhea-AI Summary

eGain (Nasdaq: EGAN) reported its Q4 and fiscal year 2025 results, with Q4 revenue reaching $23.2 million, up 11% sequentially and 3% year-over-year. The company posted a significant GAAP net income of $30.9 million in Q4, largely due to a $29.0 million tax benefit.

For fiscal 2025, total revenue was $88.4 million, down 5% year-over-year. The company announced a $20 million expansion of its stock repurchase program, increasing the total authorization to $60 million. During FY2025, eGain repurchased approximately 2.6 million shares at an average price of $6.03.

Looking ahead, eGain projects FY2026 revenue between $90.5-92.0 million and GAAP net income of $3.5-5.0 million. The company maintains a strong cash position with $62.9 million in cash and equivalents.

[ "Q4 revenue increased 11% sequentially and 3% year-over-year to $23.2 million", "Significant Q4 GAAP net income of $30.9 million, including $29.0 million tax benefit", "Strong Q4 Adjusted EBITDA margin of 19%, up from 11% in Q4 2024", "$20 million expansion of stock repurchase program to $60 million total", "Robust cash position of $62.9 million", "Secured one of the largest deals in company history during Q4" ]

Positive

• None.

Negative

• Full-year revenue declined 5% year-over-year to $88.4 million
• Full-year Adjusted EBITDA margin decreased to 10% from 12% in fiscal 2024
• Cash and equivalents decreased to $62.9 million from $70.0 million year-over-year
• Operating cash flow margin declined to 6% for fiscal 2025

Insights

Financial Analyst

eGain posts solid Q4 with return to growth, expanded share buyback signals management's confidence despite yearly revenue decline.

eGain's Q4 results show signs of recovery with $23.2 million in revenue, up 11% sequentially and 3% year-over-year. This marks a return to growth after three quarters of decline, with the company securing what they describe as "one of their largest deals ever" during the quarter.

The headline $30.9 million net income ($1.13 EPS) appears impressive but requires context - it includes a $29 million tax benefit from releasing valuation allowances. The underlying operational performance is better reflected in Adjusted EBITDA of $4.5 million (19% margin), which nearly doubled from $2.4 million (11% margin) in Q4 2024.

For the full fiscal year, the 5% revenue decline to $88.4 million is concerning, though the company maintained profitability with $8.6 million in Adjusted EBITDA (10% margin). Cash flow from operations was positive at $5.3 million, but cash reserves decreased from $70 million to $62.9 million, partly due to $15.8 million spent on share repurchases.

The expansion of the stock repurchase program by $20 million (to $60 million total) signals management's confidence in the company's prospects and belief that shares are undervalued. This is backed by their FY2026 guidance projecting a return to growth, with revenue of $90.5-92 million (approximately 2-4% growth) and improved Adjusted EBITDA margins of 11-13%.

Notably, the company has a strong balance sheet with $62.9 million in cash ($2.29 per share) against a market cap of approximately $165 million (based on share price of ~$6). This financial cushion allows them to navigate challenging periods while continuing their share repurchase program and investing in AI-driven growth opportunities.

SUNNYVALE, Calif., Sept. 04, 2025 (GLOBE NEWSWIRE) -- eGain (Nasdaq: EGAN), the AI knowledge management platform for service, today announced financial results for its fiscal 2025 fourth quarter and full fiscal year ended June 30, 2025.

“We are pleased to close fiscal 2025 with solid bookings and strong profitability,” said Ashu Roy, eGain’s CEO. “With one of our largest deals ever signed this quarter and healthy demand in the pipeline, we are well-positioned to capture the compelling opportunity in AI CX automation powered by trusted knowledge.”

Fiscal 2025 Fourth Quarter Financial Highlights

• Total revenue was $23.2 million, up 11% sequentially and 3% year over year.
• GAAP net income was $30.9 million, or $1.13 per share on a basic basis and $1.11 per share on a diluted basis, compared to GAAP net income of $1.5 million, or $0.05 per share on a basic and diluted basis, in Q4 2024. This includes the impact of a tax benefit of approximately $29.0 million from the release of a majority of the company’s valuation allowance in Q4 2025.
• Adjusted EBITDA was $4.5 million, a 19% margin, compared to $2.4 million, an 11% margin in Q4 2024.
• Total shares repurchased were approximately 630,000 at an average price of $5.97 per share, totaling $3.8 million.

Fiscal 2025 Full Year Financial Highlights

• Total revenue was $88.4 million, down 5% year over year.
• GAAP net income was $32.3 million, or $1.15 per share on a basic basis and $1.13 per share on a diluted basis, compared to GAAP net income of $7.8 million, or $0.25 per share on a basic and diluted basis. This includes the impact of a tax benefit of approximately $29.0 million from the release of a majority of the company’s valuation allowance in fiscal 2025.
• Adjusted EBITDA was $8.6 million, a 10% margin, compared to $11.2 million, a 12% margin in fiscal 2024.
• Cash provided by operations for fiscal 2025 was $5.3 million, or an operating cash flow margin of 6%.
• Total cash and cash equivalents as of June 30, 2025 were $62.9 million, compared to $70.0 million as of June 30, 2024.
• Total shares repurchased were approximately 2,616,000 at an average price of $6.03 per share, totaling $15.8 million.

Fiscal 2026 First Quarter and Fiscal 2026 Financial Guidance

For the first quarter of fiscal 2026 ending September 30, 2025, eGain expects:

• Total revenue of between $23.0 million to $23.5 million.
• GAAP net income of $900,000 to $1.6 million, or $0.03 to $0.06 per share.
  • Includes stock-based compensation expense of approximately $800,000.
  • Includes warrant expense of approximately $1.4 million.
• Non-GAAP net income of $3.1 million to $3.8 million, or $0.11 to $0.14 per share.
• Adjusted EBITDA of $3.7 million to $4.4 million, or margin of 16% to 19%.

For the fiscal 2026 full year ending June 30, 2026, eGain expects:

• Total revenue of between $90.5 million to $92.0 million.
• GAAP net income of $3.5 million to $5.0 million, or $0.13 to $0.18 per share.
  • Includes stock-based compensation expense of approximately $3.4 million.
  • Includes warrant expense of approximately $1.4 million.
• Non-GAAP net income of $8.3 million to $9.8 million, or $0.30 to $0.36 per share.
• Adjusted EBITDA of $10.4 million to $11.9 million, or margin of 11% to 13%.

Guidance Assumption:

• Weighted average shares outstanding are expected to be approximately 27.5 million for each of the first quarter of fiscal 2026 and for the full fiscal year 2026.
  

Stock Repurchase Program

eGain also announced today that its Board of Directors approved a $20 million increase in its stock repurchase program, bringing the aggregate amount eGain may purchase from $40 million to $60 million of its outstanding common stock. The stock repurchase program will be funded using existing cash or future cash flows.

“Our strong balance sheet allows us to focus on driving long-term shareholder value. This increased authorization underscores our belief that our shares are undervalued and demonstrates our confidence in the AI knowledge market opportunity,” said Ashu Roy, eGain’s CEO.

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures as supplemental information relating to eGain’s operating results, including adjusted EBITDA and non-GAAP net income. Adjusted EBITDA is defined as net income, adjusted for the impact of depreciation and amortization, stock-based compensation expense, interest income, net, provision for income taxes, benefit from income taxes related to the release of valuation allowance, other expense, net and severance and related charges. Non-GAAP net income measure is adjusted for benefit from income taxes related to the release of valuation allowance and stock-based compensation expense. eGain’s management has analyzed the effect of these non-GAAP adjustments on our benefit from (provision for) income taxes and believes the change in our benefit from (provision for) income taxes would be substantial due to these non-GAAP adjustments including the release of the full valuation allowance for all U.S. deferred tax assets except California net operating losses and research and development credits. Non-GAAP results are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, or GAAP, and may be different from non-GAAP measures used by other companies. eGain’s management uses these non-GAAP measures to compare our performance to that of prior periods for trend analysis and for budgeting and planning purposes. eGain believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies, many of which present similar non-GAAP financial measures to investors, and that it allows for greater transparency with respect to key metrics used by management in our financial and operational decision-making. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release. eGain urges investors to review the reconciliation and not to rely on any single financial measure to evaluate our business. In addition, this press release includes eGain’s projected non-GAAP net income for future periods, a non-GAAP measure used to describe eGain’s expected performance. We have not presented a reconciliation to eGain’s projected net income, the most comparable GAAP financial measure, because the reconciliation could not be prepared without unreasonable effort. The information necessary to prepare the reconciliation is not available on a forward-looking basis and cannot be accurately predicted. The unavailable information could have a significant impact on the calculation of the comparable GAAP financial measure.

Conference Call Information

eGain will discuss its fiscal 2025 fourth quarter and full year results today via a teleconference at 2:00 p.m. Pacific Time. To access the live call, dial 844-481-2704 (U.S. toll free) or +1 412-317-0660 (International) and ask to join the eGain earnings call. A live and archived webcast of the call will also be accessible on the “Investor relations” section of eGain’s website at www.egain.com. In addition, a phone replay of the conference call will be available starting two hours after the call and will remain in effect for one week. To access the phone replay, dial 877-344-7529 (U.S. toll free) or +1 412-317-0088 (International). The replay access code is 2639200.

About eGain

eGain AI Knowledge Hub helps businesses improve experience and reduce cost by delivering trusted, consumable answers. Visit www.eGain.com for more info.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation: our financial guidance for the first quarter of fiscal 2026 and fiscal 2026 full year ending June 30, 2026; our focus; demand for our products and market opportunity; our sales pipeline; and our belief that our shares are undervalued. The achievement or success of the matters covered by such forward-looking statements, including future financial guidance, involves risks, uncertainties, and assumptions, many of which involve factors or circumstances that are beyond our control. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our actual results could differ materially from the results expressed or implied by the forward-looking statements we make, including our ability to achieve our targets for the first quarter of fiscal 2026 and fiscal 2026 full year ending June 30, 2026. The risks and uncertainties referred to above include, but are not limited to: risks to our business, operating results, and financial condition; the pace of technological advancements in generative AI and the adaptability of our services to incorporate these advancements; market demand for AI-enabled solutions; risks associated with new product releases and new services and products features; risks that customer demand may fluctuate or decrease; risks that we are unable to collect unbilled contractual commitments, particularly in the current economic environment; risks that our lengthy sales cycles may negatively affect our operating results; currency risks; our ability to capitalize on customer engagement; risks related to our reliance on a relatively small number of customers for a substantial portion of our revenue; our ability to compete successfully and manage growth; our ability to develop and expand strategic and third-party distribution channels; risks related to our international operations; our ability to continue to innovate; our strategy of making investments in sales to drive growth; general political or destabilizing events, including war, intensified international hostilities, conflict or acts of terrorism; the effect of legislative initiatives or proposals, statutory changes, governmental or other applicable regulations and/or changes in industry requirements, including those addressing data privacy, cyber-security and cross-border data transfers; and other risks detailed from time to time in eGain’s public filings, including eGain’s annual report on Form 10-K for the fiscal year ended June 30, 2024 and subsequent reports filed with the Securities and Exchange Commission, which are available on the Securities and Exchange Commission’s website at www.sec.gov. These forward-looking statements are based on current expectations and speak only as of the date hereof. We assume no obligation and do not intend to update these forward-looking statements, except as required by law.

eGain, the eGain logo, and all other eGain product names and slogans are trademarks or registered trademarks of eGain Corporation in the United States and/or other countries. All other company names and products mentioned in this release may be trademarks or registered trademarks of the respective companies.

Investor Relations
Todd Kehrli or Jim Byers
PondelWilkinson, Inc.
tkehrli@pondel.com
jbyers@pondel.com

eGain Corporation Condensed Consolidated Balance Sheets (in thousands, except par value data) (unaudited)
		June 30,				June 30,
			2025				2024
ASSETS
Current assets:
Cash and cash equivalents		$	62,909			$	70,003
Restricted cash			8				8
Accounts receivable, less provision for credit losses of $7 and $59 as of June 30, 2025 and 2024, respectively			32,775				31,731
Costs capitalized to obtain revenue contracts, net			1,148				1,272
Prepaid expenses			2,841				2,915
Other current assets			886				1,195
Total current assets			100,567				107,124
Property and equipment, net			670				441
Operating lease right-of-use assets			3,530				3,811
Costs capitalized to obtain revenue contracts, net of current portion			1,460				1,779
Goodwill			13,186				13,186
Other assets, net			28,592				1,511
Total assets		$	148,005			$	127,852
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	2,596			$	2,725
Accrued compensation			6,749				7,642
Accrued liabilities			2,821				5,078
Operating lease liabilities			1,220				1,179
Deferred revenue			48,765				45,989
Total current liabilities			62,151				62,613
Deferred revenue, net of current portion			1,766				3,280
Operating lease liabilities, net of current portion			2,449				2,592
Other long-term liabilities			908				871
Total liabilities			67,274				69,356
Stockholders’ equity:
Common stock, $0.001 par value per share – authorized: 60,000 shares; issued: 33,237 and 32,698 shares; outstanding: 27,083 and 29,160 shares as of June 30, 2025 and 2024, respectively.			33				33
Additional paid-in capital			411,253				407,416
Treasury stock, at cost: 6,154 and 3,538 common shares as of June 30, 2025 and 2024, respectively.			(38,812	)			(23,031	)
Notes receivable from stockholders			—				(21	)
Accumulated other comprehensive loss			(336	)			(2,240	)
Accumulated deficit			(291,407	)			(323,661	)
Total stockholders’ equity			80,731				58,496
Total liabilities and stockholders’ equity		$	148,005			$	127,852

eGain Corporation Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited)
		Three Months Ended								Year Ended
		June 30,								June 30,
			2025				2024				2025				2024
Revenue:
SaaS		$	21,691			$	20,439			$	81,921			$	85,082
Professional services			1,543				2,023				6,510				7,721
Total revenue			23,234				22,462				88,431				92,803
Cost of revenue:
Cost of SaaS			4,233				4,871				17,975				19,514
Cost of professional services			2,121				2,035				8,448				8,078
Total cost of revenue			6,354				6,906				26,423				27,592
Gross profit			16,880				15,556				62,008				65,211
Operating expenses:
Research and development			6,961				6,679				29,604				26,626
Sales and marketing			4,641				5,214				19,356				22,115
General and administrative			2,031				2,471				8,615				10,499
Total operating expenses			13,633				14,364				57,575				59,240
Income from operations			3,247				1,192				4,433				5,971
Interest income, net			440				865				2,469				3,798
Other expense, net			(390	)			(38	)			(1,265	)			(51	)
Income before income tax benefit (provision)			3,297				2,019				5,637				9,718
Benefit from (provision for) income taxes			27,568				(513	)			26,617				(1,938	)
Net income		$	30,865			$	1,506			$	32,254			$	7,780
Per share information:
Earnings per share:
Basic		$	1.13			$	0.05			$	1.15			$	0.25
Diluted		$	1.11			$	0.05			$	1.13			$	0.25
Weighted-average shares used in computation:
Basic			27,324				29,724				28,161				30,840
Diluted			27,750				30,302				28,650				31,468
Summary of stock-based compensation included in the costs and expenses above:
Cost of revenue		$	186			$	313			$	865			$	1,237
Research and development			117				329				640				1,424
Sales and marketing			75				169				352				645
General and administrative			118				205				592				1,223
Total stock-based compensation		$	496			$	1,016			$	2,449			$	4,529

eGain Corporation GAAP to Non-GAAP Reconciliation Table (in thousands, except per share data) (unaudited)
		Three Months Ended						Year Ended
		June 30,						June 30,
		2025			2024			2025			2024
Income from operations		$	3,247		$	1,192		$	4,433		$	5,971
Add:
Stock-based compensation			496			1,016			2,449			4,529
Non-GAAP income from operations		$	3,743		$	2,208		$	6,882		$	10,500

		Three Months Ended								Year Ended
		June 30,								June 30,
			2025				2024				2025				2024
Net income		$	30,865			$	1,506			$	32,254			$	7,780
Add:
Depreciation and amortization			77				91				340				387
Stock-based compensation expense			496				1,016				2,449				4,529
Interest income, net			(440	)			(865	)			(2,469	)			(3,798	)
Provision for income taxes			1,396				513				2,347				1,938
Benefit from income taxes related to the release of valuation allowance			(28,964	)			—				(28,964	)			—
Other expense, net			390				38				1,265				51
Severance and related charges			648				104				1,407				351
Adjusted EBITDA		$	4,468			$	2,403			$	8,629			$	11,238

		Three Months Ended							Year Ended
		June 30,							June 30,
			2025			2024				2025			2024
Net income		$	30,865			$	1,506		$	32,254			$	7,780
Add:
Benefit from income taxes related to the release of valuation allowance			(28,964	)			—			(28,964	)			—
Stock-based compensation			496				1,016			2,449				4,529
Non-GAAP net income		$	2,397			$	2,522		$	5,739			$	12,309
Per share information:
Non-GAAP earnings per share:
Basic		$	0.09			$	0.08		$	0.20			$	0.40
Diluted		$	0.09			$	0.08		$	0.20			$	0.39
Weighted-average shares used in computation:
Basic			27,324				29,724			28,161				30,840
Diluted			27,750				30,302			28,650				31,468

eGain Corporation Other GAAP to Non-GAAP Supplemental Financial Information (in thousands) (unaudited)
		Three Months Ended June 30,								Growth Rates				Constant Currency Growth Rates [1]
			2025				2024
Revenue:
GAAP SaaS		$	21,691			$	20,439				6%				5%
GAAP professional services			1,543				2,023				(24%)				(25%)
Total GAAP revenue		$	23,234			$	22,462				3%				2%
Cost of Revenue:
GAAP SaaS		$	4,233			$	4,871
Non-GAAP SaaS		$	4,233			$	4,871
GAAP professional services		$	2,121			$	2,035
Add back:
Stock-based compensation			(186	)			(313	)
Non-GAAP professional services		$	1,935			$	1,722
GAAP total cost of revenue		$	6,354			$	6,906
Add back:
Stock-based compensation			(186	)			(313	)
Non-GAAP total cost of revenue		$	6,168			$	6,593				(6%)				(7%)
Gross Profit:
Non-GAAP SaaS		$	17,458			$	15,568
Non-GAAP professional services			(392	)			301
Non-GAAP gross profit		$	17,066			$	15,869				8%				6%
Operating expenses:
GAAP research and development		$	6,961			$	6,679
Add back:
Stock-based compensation expense			(117	)			(329	)
Non-GAAP research and development		$	6,844			$	6,350				8%				7%
GAAP sales and marketing		$	4,641			$	5,214
Add back:
Stock-based compensation expense			(75	)			(169	)
Non-GAAP sales and marketing		$	4,566			$	5,045				(9%)				(11%)
GAAP general and administrative		$	2,031			$	2,471
Add back:
Stock-based compensation expense			(118	)			(205	)
Non-GAAP general and administrative		$	1,913			$	2,266				(16%)				(17%)
GAAP operating expenses		$	13,633			$	14,364
Add back:
Stock-based compensation expense			(310	)			(703	)
Non-GAAP operating expenses		$	13,323			$	13,661				(2%)				(3%)

[1] Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at the exchange rates in effect during the prior period presented rather than the actual exchange rates in effect during the current period.

eGain Corporation Other GAAP to Non-GAAP Supplemental Financial Information (in thousands) (unaudited)
		Year Ended June 30,								Growth Rates			Constant Currency Growth Rates [1]
			2025				2024
Revenue:
GAAP SaaS		$	81,921			$	85,082				(4%)			(4%)
GAAP professional services			6,510				7,721				(16%)			(16%)
Total GAAP revenue		$	88,431			$	92,803				(5%)			(5%)
Cost of Revenue:
GAAP SaaS		$	17,975			$	19,514
Non-GAAP SaaS		$	17,975			$	19,514
GAAP professional services		$	8,448			$	8,078
Add back:
Stock-based compensation			(865)				(1,237)
Non-GAAP professional services		$	7,583			$	6,841
GAAP total cost of revenue		$	26,423			$	27,592
Add back:
Stock-based compensation			(865)				(1,237)
Non-GAAP total cost of revenue		$	25,558			$	26,355				(3%)			(3%)
Gross Profit:
Non-GAAP SaaS		$	63,946			$	65,568
Non-GAAP professional services			(1,073)				880
Non-GAAP gross profit		$	62,873			$	66,448				(5%)			(6%)
Operating expenses:
GAAP research and development		$	29,604			$	26,626
Add back:
Stock-based compensation expense			(640)				(1,424)
Non-GAAP research and development		$	28,964			$	25,202				15%			15%
GAAP sales and marketing		$	19,356			$	22,115
Add back:
Stock-based compensation expense			(352)				(645)
Non-GAAP sales and marketing		$	19,004			$	21,470				(11%)			(12%)
GAAP general and administrative		$	8,615			$	10,499
Add back:
Stock-based compensation expense			(592)				(1,223)
Non-GAAP general and administrative		$	8,023			$	9,276				(14%)			(14%)
GAAP operating expenses		$	57,575			$	59,240
Add back:
Stock-based compensation expense			(1,584)				(3,292)
Non-GAAP operating expenses		$	55,991			$	55,948				0%			0%

[1] Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at the exchange rates in effect during the prior period presented rather than the actual exchange rates in effect during the current period.

FAQ

What were eGain's (EGAN) Q4 2025 earnings results?

eGain reported Q4 2025 revenue of $23.2 million, up 11% sequentially and 3% year-over-year, with GAAP net income of $30.9 million ($1.11 per diluted share), including a $29.0 million tax benefit.

How much did eGain expand its stock buyback program in 2025?

eGain increased its stock repurchase program by $20 million, bringing the total authorization to $60 million. In FY2025, they repurchased about 2.6 million shares at an average price of $6.03.

What is eGain's revenue guidance for fiscal 2026?

eGain expects fiscal 2026 revenue between $90.5-92.0 million, with GAAP net income of $3.5-5.0 million, or $0.13-0.18 per share.

How much cash does eGain (EGAN) have as of Q4 2025?

eGain reported $62.9 million in cash and cash equivalents as of June 30, 2025, compared to $70.0 million in the previous year.

What was eGain's Adjusted EBITDA margin in Q4 2025?

eGain achieved an Adjusted EBITDA margin of 19% in Q4 2025, up from 11% in Q4 2024, with Adjusted EBITDA of $4.5 million.