eGain Announces Increase to Stock Repurchase Program of $20 Million

Rhea-AI Summary

eGain (Nasdaq: EGAN) has announced a significant expansion of its stock repurchase program, increasing it by $20 million to reach a total authorization of $60 million. The company has already repurchased approximately $39.8 million worth of shares, leaving about $20.2 million available for future buybacks.

The program will be funded through existing cash or future cash flows, with shares to be purchased through open market or private transactions. The Board has extended the program's duration until either the full amount is repurchased or the Board decides to terminate it. CEO Ashu Roy emphasized that this decision reflects management's belief that EGAN shares are undervalued and demonstrates confidence in the AI knowledge market opportunity.

Positive

• Significant $20 million increase in buyback authorization to $60 million total
• Strong balance sheet position enabling share repurchases
• Management's confidence in company valuation and market opportunity
• Demonstrated commitment to returning value to shareholders

Negative

• Large portion ($39.8M) of previous authorization already used
• No specified timeline for completion of the buyback program

Insights

Financial Analyst

eGain boosts buyback program by $20M to $60M total, signaling confidence in business outlook and potential shareholder value creation.

eGain's $20 million expansion of its share repurchase program represents a 50% increase from the previous $40 million authorization. With approximately $39.8 million already spent on repurchases, the company had nearly exhausted its existing authorization, leaving just $0.2 million remaining. This substantial expansion indicates management's continued commitment to capital return.

The timing is particularly noteworthy - rather than waiting until the existing authorization was fully depleted, management proactively increased it, suggesting strong conviction in their repurchase strategy. CEO Ashu Roy's statement that shares are "undervalued" signals management's belief that the current market price doesn't reflect eGain's intrinsic value, particularly considering opportunities in the AI knowledge market.

The company's decision to fund repurchases through existing cash or future cash flows indicates healthy liquidity. The flexible implementation approach - including discretionary open market purchases, privately negotiated transactions, and potential Rule 10b5-1 plans - provides eGain with multiple execution options while maintaining compliance with insider trading regulations.

While share repurchases reduce outstanding shares and can boost EPS, they also reduce cash reserves that could otherwise be used for growth initiatives or acquisitions. However, management's willingness to significantly expand this program suggests they see buybacks as the optimal capital allocation strategy at current valuation levels, potentially creating more shareholder value than alternative investments.

SUNNYVALE, Calif., Sept. 04, 2025 (GLOBE NEWSWIRE) -- eGain (Nasdaq: EGAN), the AI knowledge platform for customer service, 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.

As of September 3, 2025, eGain has repurchased approximately $39.8 million of shares of its common stock under its stock repurchase program, leaving approximately $0.2 million of shares of its common stock available for repurchase after the increase. The Board of Directors also approved to extend the stock repurchase program until the earlier of (i) the date the aggregate amount of shares that can be repurchased under the stock repurchase program have been repurchased and (ii) the date the Board of Directors decides to terminate the stock repurchase program.

Under the stock repurchase program, eGain may purchase shares of common stock on a discretionary basis from time to time through open market transactions or privately negotiated transactions at prices deemed appropriate by eGain. In addition, at the discretion of eGain, open market repurchase of common stock may also be made under a Rule 10b5-1 plan, which would permit common stock to be repurchased when eGain might otherwise be precluded from doing so under insider trading laws or self-imposed trading restrictions.

The timing and number of shares repurchased will be determined based on an evaluation of market conditions and other factors, including stock price, trading volume, general business and market conditions, and capital availability. The stock repurchase program does not obligate eGain to acquire a specified number of shares and may be modified, suspended, or discontinued at any time at eGain’s discretion without notice.

About eGain

eGain Knowledge Hub helps improve experience and reduce cost by delivering trusted answers for customer service. 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: statements regarding the timing, scope, and funding of our stock repurchase program; our belief that our shares are undervalued; our focus and market opportunity; and the expected benefits of our products. The achievement or success of the matters covered by such forward-looking statements 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. 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

FAQ

How much did eGain increase its stock buyback program by in September 2025?

eGain increased its stock buyback program by $20 million, bringing the total authorization from $40 million to $60 million.

How much of EGAN's stock repurchase program has been completed?

As of September 3, 2025, eGain has repurchased approximately $39.8 million of shares, leaving about $20.2 million available for future repurchases.

How will eGain fund its expanded stock repurchase program?

The stock repurchase program will be funded using existing cash or future cash flows.

When does eGain's stock buyback program expire?

The program will continue until either the full authorized amount is repurchased or the Board of Directors decides to terminate it.

How will EGAN execute its share repurchase program?

eGain may purchase shares through open market transactions, privately negotiated transactions, or under a Rule 10b5-1 plan, with timing and volume based on market conditions.