eGain Announces Second Quarter 2026 Financial Results

Rhea-AI Summary

eGain (Nasdaq: EGAN) reported fiscal Q2 2026 results for the quarter ended Dec 31, 2025. Total revenue was $23.0M (+3% YoY). AI Knowledge Hub ARR rose 27% YoY to $48.4M, representing 64% of total SaaS ARR. GAAP gross margin was 73%; GAAP net income was $2.3M ($0.08 diluted). Cash from operations was $10.1M, and cash and equivalents totaled $83.1M. eGain provided Q3 and fiscal 2026 guidance, including full-year revenue of $90.5M–$92.0M and updated GAAP and non-GAAP net income ranges.

Positive

• AI Knowledge Hub ARR +27% year-over-year to $48.4M
• AI Knowledge Hub represents 64% of total SaaS ARR
• GAAP gross margin improved to 73% from 70% prior year
• GAAP net income of $2.3M vs $0.67M year-ago quarter
• Operating cash flow of $10.1M (44% margin) and $83.1M cash balance

Negative

• Total revenue growth modest at +3% year-over-year in Q2
• Full-year guidance includes ~$1.4M warrant expense and ~$2.9M stock-based compensation
• Revenue concentration: 64% of SaaS ARR tied to AI Knowledge Hub

News Market Reaction

-7.54%

14 alerts

-7.54% News Effect

+5.5% Peak Tracked

-5.9% Trough Tracked

-$23M Valuation Impact

$282M Market Cap

1.5x Rel. Volume

On the day this news was published, EGAN declined 7.54%, reflecting a notable negative market reaction. Argus tracked a peak move of +5.5% during that session. Argus tracked a trough of -5.9% from its starting point during tracking. Our momentum scanner triggered 14 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $23M from the company's valuation, bringing the market cap to $282M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q2 2026 revenue: $23.0M AI Knowledge Hub ARR: $48.4M GAAP gross margin Q2: 73% +5 more

8 metrics

Q2 2026 revenue $23.0M Fiscal Q2 2026, up 3% year over year

AI Knowledge Hub ARR $48.4M ARR grew 27% YoY; 64% of total SaaS ARR

GAAP gross margin Q2 73% Up from 70% in Q2 fiscal 2025

GAAP net income Q2 $2.3M $0.09 basic / $0.08 diluted vs $671K in Q2 2025

Non-GAAP net income Q2 $3.0M $0.11 per share vs $1.3M, $0.05 in Q2 2025

Adjusted EBITDA Q2 $3.3M 14% margin vs $1.6M, 7% margin in Q2 2025

Q2 operating cash flow $10.1M Operating cash flow margin of 44%

Cash & equivalents $83.1M End of Q2 2026 vs $70.5M in Q2 2025

Market Reality Check

Price: $10.00 Vol: Volume 189,361 is roughly...

normal vol

$10.00 Last Close

Volume Volume 189,361 is roughly in line with 20-day average of 184,937 (rel. 1.02x). normal

Technical Price $10.34 is trading above the 200-day MA at $8.56 ahead of this report.

Peers on Argus

EGAN gained 0.68% with mixed peer action: ASUR +2.6%, MAPS +3.29%, SMRT +3.11%, ...

EGAN gained 0.68% with mixed peer action: ASUR +2.6%, MAPS +3.29%, SMRT +3.11%, while DMRC -1.64% and ONTF -0.13%, suggesting a stock-specific response rather than a broad sector move.

Previous Earnings Reports

4 past events · Latest: Nov 12 (Positive)

Same Type Pattern 4 events

Date	Event	Sentiment	Move	Catalyst
Nov 12	Quarterly earnings	Positive	+0.0%	Q1 2026 growth in revenue, AI ARR, margins, and profitability.
May 14	Quarterly earnings	Negative	+3.6%	Q3 2025 revenue decline and lowered FY2025 revenue guidance.
Feb 13	Quarterly earnings	Negative	-18.2%	Q2 2025 revenue decline and reduced full-year revenue outlook.
Nov 12	Quarterly earnings	Negative	-7.3%	Q1 2025 revenue drop and reduced FY2025 revenue guidance.

Pattern Detected

Earnings headlines have produced mixed reactions: some reports with softer revenue saw sharp selloffs, while others with more balanced results saw flat or positive moves.

Recent Company History

Recent earnings for eGain show a transition from revenue declines in FY2025 to resumed growth in FY2026. Prior reports highlighted AI Knowledge Hub ARR expansion, margin improvement, and a shift from modest profits to stronger GAAP and non-GAAP earnings. Price reactions around these events have been volatile, with both double‑digit drops and multi‑percent gains, so this quarter’s results fit into an ongoing profitability and AI‑driven growth narrative initiated across 2024–2025 quarters.

Historical Comparison

earnings

+7.3 %

Average Historical Move

Historical Analysis

Over the last four earnings releases, EGAN’s average move was about 7.25%, showing earnings have often been meaningful catalysts versus today’s relatively modest reaction.

Typical Pattern

Compared with prior earnings, this report continues the pivot from FY2025 revenue declines toward FY2026 growth, with AI Knowledge Hub ARR expansion and margin improvement reinforcing earlier profitability gains.

Market Pulse Summary

The stock moved -7.5% in the session following this news. A negative reaction despite improving prof...

Analysis

The stock moved -7.5% in the session following this news. A negative reaction despite improving profitability would fit prior episodes where earnings with mixed elements produced sharp moves, with past same‑tag events averaging 7.25%. While this release reported higher revenue, margins, and net income, expectations and guidance ranges can drive downside volatility. Investors would need to focus on the durability of AI Knowledge Hub ARR growth, overall revenue trajectory, and management’s ability to sustain cash generation if sentiment turns cautious.

Key Terms

annual recurring revenue, adjusted EBITDA, stock-based compensation expense, non-GAAP financial measures

4 terms

annual recurring revenue financial

"AI Knowledge Hub annual recurring revenue grew 27% year over year..."

Annual recurring revenue is the predictable amount of money a company expects to earn each year from ongoing customer subscriptions or contracts. It helps businesses understand how much steady income they can count on, much like a subscription service that charges customers every month or year. This figure is important because it shows the company's stability and growth potential.

adjusted EBITDA financial

"Adjusted EBITDA was $3.3 million, a 14% margin..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

stock-based compensation expense financial

"Includes stock-based compensation expense of approximately $800,000."

Stock-based compensation expense is the value that a company records when it gives employees or executives shares or options to buy shares as part of their pay. It matters because it shows the true cost of paying employees this way, which can affect the company's profits and how investors see its financial health.

non-GAAP financial measures financial

"This press release includes certain non-GAAP financial measures..."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

AI-generated analysis. Not financial advice.

AI Knowledge Hub ARR Increases 27% Year Over Year

SUNNYVALE, Calif., Feb. 03, 2026 (GLOBE NEWSWIRE) -- eGain (Nasdaq: EGAN), a leading provider of AI-powered knowledge management solutions, today announced financial results for its fiscal 2026 second quarter ended December 31, 2025.

“I am pleased with our second-quarter performance, highlighted by the 27% year-over-year growth in AI Knowledge Hub ARR,” said Ashu Roy, eGain’s CEO. “AI Knowledge Hub now represents 64% of our total SaaS ARR, and we continued to build momentum with several customer wins during the quarter. One notable addition was Achmea, a leading European insurance and financial services group, which selected eGain to support 21,000 users across its contact center and enterprise teams.”

Fiscal 2026 Second Quarter Financial Highlights

• Total revenue was $23.0 million, up 3% year over year.
• AI Knowledge Hub annual recurring revenue grew 27% year over year to $48.4 million, contributing 64% of total SaaS annual recurring revenue.
• GAAP gross margin was 73%, compared to 70% in Q2 fiscal 2025.
• Non-GAAP gross margin was 74%, up from 71% in Q2 fiscal 2025.
• GAAP net income was $2.3 million, or $0.09 per share on a basic basis and $0.08 per share on a diluted basis, compared to GAAP net income of $671,000, or $0.02 per share on a basic and diluted basis, in Q2 fiscal 2025.
• Non-GAAP net income was $3.0 million, or $0.11 per share on a basic and diluted basis, compared to non-GAAP net income of $1.3 million, or $0.05 per share on a basic basis and $0.04 per share on a diluted basis, in Q2 fiscal 2025.
• Adjusted EBITDA was $3.3 million, a 14% margin, compared to $1.6 million, a 7% margin, in Q2 fiscal 2025.
• Cash provided by operating activities was $10.1 million, or an operating cash flow margin of 44%.
• Total cash and cash equivalents were $83.1 million, compared to $70.5 million in Q2 fiscal 2025.
  
  

Fiscal 2026 First Six Months Financial Highlights

• Total revenue was $46.5 million, up 5% year over year.
• GAAP gross margin was 74%, compared to 70% in the same period last year.
• Non-GAAP gross margin was 75%, up from 71% in the same period last year.
• GAAP net income was $5.2 million, or $0.19 per share on a basic and diluted basis, compared to GAAP net income of $1.3 million, or $0.05 per share on a basic and diluted basis, in the same period last year.
• Non-GAAP net income was $7.7 million, or $0.28 per share on a basic and diluted basis, compared to non-GAAP net income of $2.6 million, or $0.09 per share on a basic and diluted basis, in the same period last year.
• Adjusted EBITDA was $8.3 million, an 18% margin, compared to $3.0 million, a 7% margin, in the same period last year.
• Cash provided by operating activities was $20.5 million, or an operating cash flow margin of 44%.
  
  

Fiscal 2026 Third Quarter Financial Guidance

For the third quarter of fiscal 2026 ending March 31, 2026, eGain expects:

• Total revenue between $22.2 million to $22.7 million.
• GAAP net income of $1.0 million to $1.5 million, or $0.04 to $0.05 per share.
  • Includes stock-based compensation expense of approximately $800,000.
• Non-GAAP net income of between $1.8 million to $2.3 million, or $0.06 to $0.08 per share.
• Adjusted EBITDA of $2.6 million to $3.1 million, or margin of 12% to 14%.
  
  

Fiscal 2026 Financial Guidance

For the fiscal 2026 full year ending June 30, 2026, eGain is updating its guidance as follows:

• Total revenue between $90.5 million to $92.0 million.
• GAAP net income of $4.5 million to $6.0 million, or $0.16 to $0.21 per share.
  • Includes stock-based compensation expense of approximately $2.9 million.
  • Includes warrant expense of approximately $1.4 million.
• Non-GAAP net income of $8.8 million to $10.3 million, or $0.31 to $0.36 per share.
• Adjusted EBITDA of $10.9 million to $12.4 million, or margin of 12% to 13%.
  
  

Guidance Assumptions:

• Weighted average shares outstanding are expected to be approximately 28.3 million for the third quarter of fiscal 2026 and 28.0 million for the full fiscal 2026.
  
  

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, issuance of common stock warrant for services, stock-based compensation expense, interest income, provision for income taxes, other income (expense), net and severance and related charges. Non-GAAP net income measure is adjusted for issuance of common stock warrant for services and stock-based compensation expense. eGain’s management has analyzed the effect of these non-GAAP adjustments on our provision for income taxes and believes the change in our provision for income taxes would not be substantial. 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 and adjusted EBITDA for future periods, non-GAAP measures used to describe eGain’s expected performance. We have not presented a reconciliation of eGain’s non-GAAP net income or adjusted EBITDA to 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 reconciliations are 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 2026 second quarter 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 “Investors” 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 855-669-9658 (U.S. toll free) or +1 412-317-0088 (International). The replay access code is 5842278.

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 third quarter of fiscal 2026 and fiscal 2026 full year ending June 30, 2026. 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 third 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; 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, 2025 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)
	December 31,				June 30,
	2025				2025
ASSETS
Current assets:
Cash and cash equivalents	$	83,059			$	62,909
Restricted cash		8				8
Accounts receivable, less provision for credit losses of $2 and $7 as of December 31, 2025 and June 30, 2025, respectively		13,769				32,775
Costs capitalized to obtain revenue contracts, net		970				1,148
Prepaid expenses		1,600				2,841
Other current assets		682				886
Total current assets		100,088				100,567
Property and equipment, net		930				670
Operating lease right-of-use assets		3,230				3,530
Costs capitalized to obtain revenue contracts, net of current portion		1,291				1,460
Goodwill		13,186				13,186
Other assets, net		28,042				28,592
Total assets	$	146,767			$	148,005
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	1,422			$	2,596
Accrued compensation		4,782				6,749
Accrued liabilities		2,974				2,821
Operating lease liabilities		1,517				1,220
Deferred revenue		42,089				48,765
Total current liabilities		52,784				62,151
Deferred revenue, net of current portion		2,358				1,766
Operating lease liabilities, net of current portion		1,995				2,449
Other long-term liabilities		845				908
Total liabilities		57,982				67,274
Stockholders' equity:
Common stock, par value $0.001 per share - authorized: 60,000 shares; issued: 33,766 and 33,237 shares as of December 31, 2025 and June 30, 2025, respectively; outstanding: 27,381 and 27,083 shares as of December 31, 2025 and June 30, 2025, respectively		34				33
Additional paid-in capital		416,258				411,253
Treasury stock, at cost: 6,385 and 6,154 shares of common stock as of December 31, 2025 and June 30, 2025, respectively		(40,252	)			(38,812	)
Accumulated other comprehensive loss		(1,004	)			(336	)
Accumulated deficit		(286,251	)			(291,407	)
Total stockholders' equity		88,785				80,731
Total liabilities and stockholders' equity	$	146,767			$	148,005

eGain Corporation Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited)
	Three Months Ended								Six Months Ended
	December 31,								December 31,
	2025				2024				2025				2024
Revenue:
SaaS	$	21,799			$	20,847			$	43,699			$	40,667
Professional services		1,180				1,542				2,788				3,521
Total revenue		22,979				22,389				46,487				44,188
Cost of revenue:
Cost of SaaS		4,438				4,626				8,609				9,148
Cost of professional services		1,734				2,054				3,394				4,198
Total cost of revenue		6,172				6,680				12,003				13,346
Gross profit		16,807				15,709				34,484				30,842
Operating expenses:
Research and development		7,277				7,708				14,592				15,129
Sales and marketing		5,174				5,251				9,203				10,011
General and administrative		2,310				2,100				5,810				4,543
Total operating expenses		14,761				15,059				29,605				29,683
Income from operations		2,046				650				4,879				1,159
Interest income		624				661				1,086				1,432
Other income (expense), net		(32	)			(431	)			423				(571	)
Income before income tax provision		2,638				880				6,388				2,020
Income tax provision		(302	)			(209	)			(1,232	)			(697	)
Net income	$	2,336			$	671			$	5,156			$	1,323
Per share information:
Earnings per share:
Basic	$	0.09			$	0.02			$	0.19			$	0.05
Diluted	$	0.08			$	0.02			$	0.19			$	0.05
Weighted-average shares used in computation:
Basic		27,186				28,573				27,074				28,622
Diluted		28,349				29,059				27,858				29,176
Summary of stock-based compensation included in costs and expenses above:
Cost of revenue	$	133			$	232			$	228			$	462
Research and development		313				74				543				251
Sales and marketing		115				114				226				179
General and administrative		84				202				171				362
Total stock-based compensation	$	645			$	622			$	1,168			$	1,254

eGain Corporation GAAP to Non-GAAP Reconciliation Table (in thousands, except per share data) (unaudited)
	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2025			2024			2025			2024
Income from operations	$	2,046		$	650		$	4,879		$	1,159
Add:
Issuance of common stock warrant for services		—			—			1,350			—
Stock-based compensation		645			622			1,168			1,254
Non-GAAP income from operations	$	2,691		$	1,272		$	7,397		$	2,413

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2025			2024			2025			2024
Net income	$	2,336		$	671		$	5,156		$	1,323
Add:
Issuance of common stock warrant for services		—			—			1,350			—
Stock-based compensation		645			622			1,168			1,254
Non-GAAP net income	$	2,981		$	1,293		$	7,674		$	2,577
Per share information:
Non-GAAP earnings per share:
Basic	$	0.11		$	0.05		$	0.28		$	0.09
Diluted	$	0.11		$	0.04		$	0.28		$	0.09
Weighted-average shares used in computation:
Basic		27,186			28,573			27,074			28,622
Diluted		28,349			29,059			27,858			29,176

	Three Months Ended								Six Months Ended
	December 31,								December 31,
	2025				2024				2025				2024
Net income	$	2,336			$	671			$	5,156			$	1,323
Add:
Depreciation and amortization		95				82				183				175
Issuance of common stock warrant for services		—				—				1,350				—
Stock-based compensation expense		645				622				1,168				1,254
Interest income		(624	)			(661	)			(1,086	)			(1,432	)
Provision for income taxes		302				209				1,232				697
Other income (expense), net		32				431				(423	)			571
Severance and related charges		501				278				724				401
Adjusted EBITDA	$	3,287			$	1,632			$	8,304			$	2,989

eGain Corporation Other GAAP to Non-GAAP Supplemental Financial Information (in thousands) (unaudited)
	Three Months Ended December 31,								Growth Rates		Constant Currency Growth Rates [1]
	2025				2024
Revenue:
GAAP SaaS	$	21,799			$	20,847			5%		4%
GAAP professional services		1,180				1,542			(23%)		(24%)
Total GAAP revenue	$	22,979			$	22,389			3%		2%
Cost of Revenue:
GAAP SaaS	$	4,438			$	4,626
Non-GAAP SaaS	$	4,438			$	4,626
GAAP professional services	$	1,734			$	2,054
Add back:
Stock-based compensation		(133	)			(232	)
Non-GAAP professional services	$	1,601			$	1,822
GAAP total cost of revenue	$	6,172			$	6,680
Add back:
Stock-based compensation		(133	)			(232	)
Non-GAAP total cost of revenue	$	6,039			$	6,448			(6%)		(6%)
Gross Profit:
Non-GAAP SaaS	$	17,361			$	16,221
Non-GAAP professional services		(421	)			(280	)
Non-GAAP gross profit	$	16,940			$	15,941			6%		5%
Operating expenses:
GAAP research and development	$	7,277			$	7,708
Add back:
Stock-based compensation expense		(313	)			(74	)
Non-GAAP research and development	$	6,964			$	7,634			(9%)		(9%)
GAAP sales and marketing	$	5,174			$	5,251
Add back:
Stock-based compensation expense		(115	)			(114	)
Non-GAAP sales and marketing	$	5,059			$	5,137			(2%)		(2%)
GAAP general and administrative	$	2,310			$	2,100
Add back:
Stock-based compensation expense		(84	)			(202	)
Non-GAAP general and administrative	$	2,226			$	1,898			17%		17%
GAAP operating expenses	$	14,761			$	15,059
Add back:
Stock-based compensation expense		(512	)			(390	)
Non-GAAP operating expenses	$	14,249			$	14,669			(3%)		(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)
	Six Months Ended December 31,								Growth Rates		Constant Currency Growth Rates [1]
	2025				2024
Revenue:
GAAP SaaS	$	43,699			$	40,667			7%		7%
GAAP professional services		2,788				3,521			(21%)		(21%)
Total GAAP revenue	$	46,487			$	44,188			5%		4%
Cost of Revenue:
GAAP SaaS	$	8,609			$	9,148
Non-GAAP SaaS	$	8,609			$	9,148
GAAP professional services	$	3,394			$	4,198
Add back:
Stock-based compensation		(228	)			(462	)
Non-GAAP professional services	$	3,166			$	3,736
GAAP total cost of revenue	$	12,003			$	13,346
Add back:
Stock-based compensation		(228	)			(462	)
Non-GAAP total cost of revenue	$	11,775			$	12,884			(9%)		(9%)
Gross Profit:
Non-GAAP SaaS	$	35,090			$	31,519
Non-GAAP professional services		(378	)			(215	)
Non-GAAP gross profit	$	34,712			$	31,304			11%		10%
Operating expenses:
GAAP research and development	$	14,592			$	15,129
Add back:
Stock-based compensation expense		(543	)			(251	)
Non-GAAP research and development	$	14,049			$	14,878			(6%)		(5%)
GAAP sales and marketing	$	9,203			$	10,011
Add back:
Stock-based compensation expense		(226	)			(179	)
Non-GAAP sales and marketing	$	8,977			$	9,832			(9%)		(10%)
GAAP general and administrative	$	5,810			$	4,543
Add back:
Issuance of common stock warrant for services		(1,350	)			—
Stock-based compensation expense		(171	)			(362	)
Non-GAAP general and administrative	$	4,289			$	4,181			3%		2%
GAAP operating expenses	$	29,605			$	29,683
Add back:
Issuance of common stock warrant for services		(1,350	)			—
Stock-based compensation expense		(940	)			(792	)
Non-GAAP operating expenses	$	27,315			$	28,891			(5%)		(6%)

[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

How much did eGain (EGAN) report for AI Knowledge Hub ARR in Q2 2026?

AI Knowledge Hub ARR was $48.4 million, up 27% year-over-year. According to the company, this product now represents 64% of total SaaS ARR, reflecting strong subscription growth and customer adoption.

What were eGain's (EGAN) total revenue and GAAP net income for Q2 fiscal 2026?

Total revenue was $23.0 million and GAAP net income was $2.3 million. According to the company, revenue rose 3% year-over-year and GAAP net income improved versus the prior-year quarter.

What operating cash flow and cash balance did eGain (EGAN) report for Q2 2026?

Cash provided by operating activities was $10.1 million, with an operating cash flow margin of 44%. According to the company, total cash and cash equivalents were $83.1 million at quarter end.

What guidance did eGain (EGAN) give for fiscal Q3 and full-year 2026?

Q3 revenue is guided to $22.2M–$22.7M; full-year revenue is guided to $90.5M–$92.0M. According to the company, GAAP and non-GAAP net income and adjusted EBITDA ranges were provided with related assumptions.

How did eGain (EGAN) report gross margin trends in the latest quarter and year-to-date?

GAAP gross margin was 73% for Q2 and 74% for the first six months, both higher than the prior year. According to the company, non-GAAP gross margins also improved versus comparable periods.