eGain Reports First Quarter Fiscal 2027 Financial Results; Revenue and Earnings Exceed High End of Guidance; AI Customer ARR Grows 11%

AI-platform customers accounted for 66% of quarterly revenue and 74% of subscription annual recurring revenue.

Rhea-AI Summary

eGain (Nasdaq: EGAN) reported fiscal 2027 first-quarter revenue of $21.9 million, exceeding guidance despite a year-over-year decline. Revenue fell 7% for the quarter ended September 30, 2026. GAAP net income declined to $1.551 million, or $0.06 per share, from $2.820 million, or $0.10 per share.

AI customer revenue rose 7% to $14.4 million. AI customer annual recurring revenue rose 11% to $54.5 million, while total subscription annual recurring revenue fell 4% to $73.4 million. Operating cash flow fell to $1.8 million from $10.4 million. eGain repurchased approximately 644,000 shares for $3.6 million.

The company expects second-quarter revenue of $21.0 million–$21.5 million and reiterated full-year revenue guidance of $84.5 million–$86.0 million, with a GAAP net loss of $2.0 million–$3.0 million. It expects higher sales and marketing spending and declining legacy customer revenue.

10 points · 0 major

MixediHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 20 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointAI customer revenue rose 7% year over year to $14.4 million, representing 66% of first-quarter revenue.
• Moderate pointAI customer annual recurring revenue increased 11% year over year to $54.5 million, representing 74% of total SaaS ARR.
• Moderate pointShare repurchases totaled $3.6 million for approximately 644,000 shares at an average $5.64 per share. 2.3% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Second-quarter revenue guidance is $21.0 million–$21.5 million; AI customer revenue guidance is $14.5 million–$14.8 million.
• Minor pointGeneral and administrative expenses fell to $2.043 million from $3.500 million in the prior-year quarter.

5 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Second-quarter non-GAAP net income guidance is $200,000–$900,000, or $0.01–$0.03 per share.
• Minor point. Forward-looking: it has not happened yet and may not happen.Second-quarter adjusted EBITDA guidance is breakeven–$500,000, with a 0%–2% margin.
• Minor point. Forward-looking: it has not happened yet and may not happen.Reiterated fiscal 2027 revenue guidance is $84.5 million–$86.0 million; AI customer revenue guidance is $59.5 million–$60.5 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Reiterated fiscal 2027 non-GAAP net income guidance is $1.0 million–$2.0 million, or $0.04–$0.07 per share.
• Minor point. Forward-looking: it has not happened yet and may not happen.Reiterated fiscal 2027 adjusted EBITDA guidance is $650,000–$1.4 million, with a 1%–2% margin.

Negative

• Moderate pointFirst-quarter revenue fell 7% year over year to $21.9 million, despite exceeding the high end of guidance.
• Moderate pointTotal SaaS annual recurring revenue fell 4% year over year to $73.4 million.
• Moderate pointGAAP net income fell to $1.551 million from $2.820 million; basic and diluted EPS fell to $0.06 from $0.10.
• Moderate pointAdjusted EBITDA fell to $2.689 million from $5.017 million; margin fell to 12% from 21%.
• Moderate pointOperating cash flow declined to $1.8 million from $10.4 million in the prior-year quarter.

15 minor points

• Minor pointSaaS revenue declined 5% year over year to $20.842 million.
• Minor pointProfessional services revenue declined 36% year over year to $1.026 million.
• Minor pointNon-GAAP net income fell to $2.368 million from $4.693 million; EPS fell to $0.09 from $0.17.
• Minor pointGAAP gross margin declined to 73% from 75% in the prior-year quarter.
• Minor pointNon-GAAP gross margin declined to 74% from 76% in the prior-year quarter.
• Minor pointOperating income declined to $1.693 million from $2.833 million in the prior-year quarter.
• Minor pointCash and cash equivalents fell to $71.304 million from $73.336 million at June 30; increased year over year.
• Minor pointResearch and development expenses increased to $7.410 million from $7.315 million in the prior-year quarter.
• Minor pointSales and marketing expenses increased to $4.774 million from $4.029 million in the prior-year quarter.
• Minor pointStock-based compensation increased to $817,000 from $523,000 in the prior-year quarter.
• Minor point. Forward-looking: it has not happened yet and may not happen.Second-quarter GAAP guidance ranges from a $500,000 net loss to $200,000 net income, or $(0.02)–$0.01 per share.
• Minor point. Forward-looking: it has not happened yet and may not happen.Reiterated fiscal 2027 GAAP net loss guidance is $2.0 million–$3.0 million, or $0.08–$0.11 per share.
• Minor point. Forward-looking: it has not happened yet and may not happen.Expected stock-based compensation expense is approximately $700,000 for the second quarter and $4.0 million for fiscal 2027.
• Minor point. Forward-looking: it has not happened yet and may not happen.Sales and marketing spending is expected to increase over the remainder of fiscal 2027.
• Minor point. Forward-looking: it has not happened yet and may not happen.Legacy customer revenue is expected to decline, as reflected in the reiterated full-year outlook.

News Explained

At September 30, 2026, eGain reported $71.3 million in cash and cash equivalents, compared with $70.9 million at September 30, 2025, providing a same-quarter-end comparison of reported liquidity.

Key Figures

Total revenue: $21.9 million; down 7% year over year AI customer ARR: $54.5 million; up 11% year over year Total SaaS ARR: $73.4 million; down 4% year over year +5 more

Total revenue

$21.9 million; down 7% year over year

Fiscal 2027 first quarter; above the high end of guidance

AI customer ARR

$54.5 million; up 11% year over year

As of September 30, 2026

Total SaaS ARR

$73.4 million; down 4% year over year

As of September 30, 2026

GAAP net income

$1.6 million, compared with $2.8 million

Fiscal 2027 first quarter versus Q1 fiscal 2026

Operating cash flow

$1.8 million, compared with $10.4 million

Fiscal 2027 first quarter versus Q1 fiscal 2026

Share repurchases

$3.6 million

During the fiscal 2027 first quarter

Q2 total revenue guidance

$21.0 million to $21.5 million

Fiscal 2027 second quarter

Full-year total revenue outlook

$84.5 million to $86.0 million

Fiscal 2027 outlook reiterated

Key Terms

arr, gaap, non-gaap, adjusted ebitda, +1 more

5 terms

arr financial

"AI customer annual recurring revenue (ARR)"

ARR, or Annual Recurring Revenue, is the predictable income a business expects to earn each year from ongoing customer subscriptions or contracts. It’s like a steady paycheck that shows the company's ability to generate consistent revenue over time, helping investors assess its stability and growth potential. ARR provides a clear picture of how well a company is performing in building long-term customer relationships.

gaap financial

"GAAP net income"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial

"Non-GAAP net income"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

adjusted ebitda financial

"Adjusted EBITDA was $2.7 million"

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 financial

"Includes stock-based compensation expense"

Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Named a Leader in Gartner’s Inaugural Magic Quadrant™ for Customer Service Knowledge Management Systems; Launches AI KnowledgeOps as a Trusted Instruction Layer for Enterprise AI

SUNNYVALE, Calif., Nov. 05, 2026 (GLOBE NEWSWIRE) -- eGain (Nasdaq: EGAN), a leading provider of AI-powered knowledge management and customer experience automation solutions, today announced financial results for its fiscal 2027 first quarter ended September 30, 2026.

“Being named a Leader in Gartner’s inaugural Magic Quadrant™ for Customer Service Knowledge Management Systems, with the highest product score for the Compliance-Driven Service Center use case in the companion Critical Capabilities report, is raising our visibility with enterprise buyers,” said Ashu Roy, eGain’s CEO. “As AI moves into production, enterprises need trusted, governed knowledge to deliver accurate answers and measurable results, a point our customers made clearly at Solve26. We’re focused on converting this interest into new customers and expansions.”

Fiscal 2027 First Quarter Financial Highlights

• Total revenue was $21.9 million, down 7% year over year and above the high end of guidance.
• AI customer revenue was $14.4 million, up 7% year over year, and represented 66% of total revenue.
• AI customer annual recurring revenue (ARR) was $54.5 million, up 11% year over year, and represented 74% of total SaaS ARR as of September 30, 2026.
• Total SaaS ARR was $73.4 million, down 4% year over year.
• GAAP gross margin was 73%, compared to 75% in Q1 fiscal 2026.
• Non-GAAP gross margin was 74%, compared to 76% in Q1 fiscal 2026.
• GAAP net income was $1.6 million, or $0.06 per share on a basic and diluted basis, compared to GAAP net income of $2.8 million, or $0.10 per share on a basic and diluted basis, in Q1 fiscal 2026.
• Non-GAAP net income was $2.4 million, or $0.09 per share on a basic and diluted basis, compared to non-GAAP net income of $4.7 million, or $0.17 per share on a basic and diluted basis, in Q1 fiscal 2026.
• Adjusted EBITDA was $2.7 million, representing a 12% adjusted EBITDA margin, compared to $5.0 million, or a 21% adjusted EBITDA margin, in Q1 fiscal 2026.
• Cash provided by operating activities was $1.8 million, compared to $10.4 million in Q1 fiscal 2026.
• Total cash and cash equivalents were $71.3 million as of September 30, 2026, compared to $70.9 million as of September 30, 2025.
• During the quarter, eGain repurchased approximately 644,000 shares of its common stock at an average price of $5.64 per share, totaling $3.6 million.

Fiscal 2027 Second Quarter and Fiscal 2027 Financial Guidance
eGain is providing guidance for its fiscal 2027 second quarter and reiterating its full-year fiscal 2027 outlook.

First quarter profitability benefited in part from the timing of sales and marketing spending. The company expects this spending to increase over the remainder of the fiscal year as it expands go-to-market programs, including its Solve26 customer conference and industry-focused initiatives. The reiterated full-year outlook reflects these planned investments and an expected decline in legacy customer revenue.

For the second quarter of fiscal 2027 ending December 31, 2026, eGain expects:

• Total revenue between $21.0 million and $21.5 million.
• AI customer revenue between $14.5 million and $14.8 million.
• GAAP net loss of $500,000 to GAAP net income of $200,000, or $(0.02) to $0.01 per share.
  • Includes stock-based compensation expense of approximately $700,000.
• Non-GAAP net income between $200,000 and $900,000, or between $0.01 and $0.03 per share.
• Adjusted EBITDA between breakeven and $500,000, or an adjusted EBITDA margin between 0% and 2%.

For the fiscal 2027 full year ending June 30, 2027, eGain reiterates:

• Total revenue between $84.5 million and $86.0 million.
• AI customer revenue between $59.5 million and $60.5 million.
• GAAP net loss between $2.0 million and $3.0 million, or a loss of $0.08 to $0.11 per share.
  • Includes stock-based compensation expense of approximately $4.0 million.
• Non-GAAP net income between $1.0 million and $2.0 million, or between $0.04 and $0.07 per share.
• Adjusted EBITDA between $650,000 and $1.4 million, or an adjusted EBITDA margin of 1% to 2%.

Guidance Assumptions:

• Weighted average shares outstanding are expected to be approximately 25.8 million for the second quarter of fiscal 2027 and 26.0 million for the full fiscal year 2027.
  

Key Business Metrics:

eGain uses the following metrics to evaluate its business and growth, identify trends, formulate financial projections and make strategic decisions. These non-GAAP operating metrics should not be considered a substitute for revenue presented in accordance with GAAP and may not be comparable to similarly titled measures reported by other companies.

AI customer revenue is defined as total revenue, including SaaS and professional services revenue, generated from customers on our current AI-enabled platform. AI capabilities are integrated into this platform and some AI capabilities are included within broader platform subscriptions rather than sold or priced separately. Accordingly, AI customer revenue includes all revenue from these customers and is not limited to revenue attributable to AI functionality.

AI customer ARR is defined as Total SaaS ARR from customers on our current AI-enabled platform. This amount includes all SaaS subscriptions associated with these customers and is not limited to subscriptions attributable to AI functionality.

Total SaaS ARR is defined as the recurring revenue from SaaS subscriptions, normalized over a period of one year.

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, adjusted EBITDA margin, 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, net and severance and related charges. Adjusted EBITDA margin is defined as adjusted EBITDA divided by GAAP revenue. Non-GAAP net income measure is adjusted for issuance of common stock warrant for services and stock-based compensation. 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 non-GAAP net income and adjusted EBITDA guidance 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 future 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 2027 first quarter financial results today via a teleconference at 2:00 p.m. Pacific Time. To access the live call, dial 800-715-9871 (U.S. toll free) or +1 646-307-1963 (International) and ask to join the eGain earnings call or provide conference ID 2196366. 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 available 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 2852681.

About eGain

eGain is a leading provider of AI-powered knowledge management and customer experience automation solutions. With over 25 years of experience in knowledge management, eGain helps enterprises unify siloed content, automate trusted knowledge workflows, and deliver measurable AI-ROI through proven frameworks and methods. Global 2000 companies across industries rely on eGain to transform customer service, improve employee productivity, reduce costs, and accelerate AI adoption. Visit www.egain.com for more information.

Gartner Disclaimer

Gartner, Magic Quadrant for Customer Service Knowledge Management Systems, Pri Rathnayake, Jennifer MacIntosh, Patrick Quinlan, Drew Kraus, 16 July 2026.

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 second quarter of fiscal 2027 and fiscal 2027 full year ending June 30, 2027; our beliefs regarding the validity of our business strategy; our investment in AI customer business; the expected profitability and cash-generating capacity of our legacy business; demand for our products and market opportunity; our market position; the impact of industry recognition on our visibility with enterprise buyers and customer interest; enterprise adoption of AI in production environments; and our plans to convert customer interest into new customers and expansions. 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 second quarter of fiscal 2027 and fiscal 2027 full year ending June 30, 2027. The risks and uncertainties referred to above include, but are not limited to: risks to our business, operating results, and financial condition; changes to assumptions underlying our guidance; 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 product 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, 2026 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
PondelWilkinson, Inc.
tkehrli@pondel.com

eGain Corporation Condensed Consolidated Balance Sheets (in thousands, except par value data) (unaudited)
		September 30,				June 30,
		2026				2026
ASSETS
Current assets:
Cash and cash equivalents		$	71,304			$	73,336
Restricted cash			—				8
Accounts receivable, less provision for credit losses of $12 and $28 as of September 30, 2026 and June 30, 2026, respectively			17,948				24,391
Costs capitalized to obtain revenue contracts, net			662				776
Prepaid expenses			2,267				2,811
Other current assets			672				669
Total current assets			92,853				101,991
Property and equipment, net			790				872
Operating lease right-of-use assets			2,203				2,516
Costs capitalized to obtain revenue contracts, net of current portion			1,036				1,200
Goodwill			13,186				13,186
Other assets, net			27,999				28,230
Total assets		$	138,067			$	147,995
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	1,657			$	2,486
Accrued compensation			5,321				4,610
Accrued liabilities			3,914				4,267
Operating lease liabilities			1,010				1,246
Deferred revenue			38,838				46,478
Total current liabilities			50,740				59,087
Deferred revenue, net of current portion			1,994				2,062
Operating lease liabilities, net of current portion			1,445				1,532
Other long-term liabilities			1,086				1,101
Total liabilities			55,265				63,782
Stockholders' equity:
Common stock, par value $0.001 per share - authorized: 60,000 shares; issued: 33,939 and 33,932 shares as of September 30, 2026 and June 30, 2026, respectively; outstanding: 25,534 and 26,171 shares as of September 30, 2026 and June 30, 2026, respectively			34				34
Additional paid-in capital			419,545				418,710
Treasury stock, at cost: 8,405 and 7,761 shares of common stock as of September 30, 2026 and June 30, 2026, respectively			(53,959	)			(50,322	)
Accumulated other comprehensive loss			(1,838	)			(1,678	)
Accumulated deficit			(280,980	)			(282,531	)
Total stockholders' equity			82,802				84,213
Total liabilities and stockholders' equity		$	138,067			$	147,995

eGain Corporation Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited)
		Three Months Ended
		September 30,
		2026				2025
Revenue:
SaaS		$	20,842			$	21,900
Professional services			1,026				1,608
Total revenue			21,868				23,508
Cost of revenue:
Cost of SaaS			4,648				4,171
Cost of professional services			1,300				1,660
Total cost of revenue			5,948				5,831
Gross profit			15,920				17,677
Operating expenses:
Research and development			7,410				7,315
Sales and marketing			4,774				4,029
General and administrative			2,043				3,500
Total operating expenses			14,227				14,844
Income from operations			1,693				2,833
Interest income			524				462
Other income, net			204				455
Income before income tax provision			2,421				3,750
Income tax provision			(870	)			(930	)
Net income		$	1,551			$	2,820
Per share information:
Earnings per share:
Basic		$	0.06			$	0.10
Diluted		$	0.06			$	0.10
Weighted-average shares used in computation:
Basic			26,098				26,961
Diluted			26,498				27,525
Summary of stock-based compensation included in the costs and expenses above:
Cost of revenue		$	153			$	95
Research and development			385				230
Sales and marketing			171				111
General and administrative			108				87
Total stock-based compensation		$	817			$	523

eGain Corporation GAAP to Non-GAAP Reconciliation Table (in thousands, except per share data) (unaudited)
		Three Months Ended September 30,
		2026				2025
Income from operations		$	1,693			$	2,833
Add:
Issuance of common stock warrant for services			—				1,350
Stock-based compensation			817				523
Non-GAAP income from operations		$	2,510			$	4,706

		Three Months Ended September 30,
		2026				2025
Net income		$	1,551			$	2,820
Add:
Issuance of common stock warrant for services			—				1,350
Stock-based compensation			817				523
Non-GAAP net income		$	2,368			$	4,693
Per share information:
Non-GAAP earnings per share:
Basic		$	0.09			$	0.17
Diluted		$	0.09			$	0.17
Weighted-average shares used in computation:
Basic			26,098				26,961
Diluted			26,498				27,525

		Three Months Ended
		September 30,
		2026				2025
Net income		$	1,551			$	2,820
Add:
Depreciation and amortization			104				88
Issuance of common stock warrant for services			—				1,350
Stock-based compensation expense			817				523
Interest income			(524	)			(462	)
Provision for income taxes			870				930
Other income, net			(204	)			(455	)
Severance and related charges			75				223
Adjusted EBITDA		$	2,689			$	5,017
Adjusted EBITDA margin			12	%			21	%

eGain Corporation Other GAAP to Non-GAAP Supplemental Financial Information (in thousands) (unaudited)
		Three Months Ended September 30,								Growth Rates				Constant Currency Growth Rates [1]
		2026				2025
Revenue:
GAAP SaaS		$	20,842			$	21,900				(5%)				(5%)
GAAP professional services			1,026				1,608				(36%)				(36%)
Total GAAP Revenue		$	21,868			$	23,508				(7%)				(7%)
Cost of Revenue:
GAAP SaaS		$	4,648			$	4,171
Non-GAAP SaaS		$	4,648			$	4,171
GAAP professional services		$	1,300			$	1,660
Add back:
Stock-based compensation			(153	)			(95	)
Non-GAAP professional services		$	1,147			$	1,565
GAAP total cost of revenue		$	5,948			$	5,831
Add back:
Stock-based compensation			(153	)			(95	)
Non-GAAP total cost of revenue		$	5,795			$	5,736				1%				1%
Gross Profit:
Non-GAAP SaaS		$	16,194			$	17,729
Non-GAAP professional services			(121	)			43
Non-GAAP gross profit		$	16,073			$	17,772				(10%)				(10%)
Operating expenses:
GAAP research and development		$	7,410			$	7,315
Add back:
Stock-based compensation expense			(385	)			(230	)
Non-GAAP research and development		$	7,025			$	7,085				(1%)				1%
GAAP sales and marketing		$	4,774			$	4,029
Add back:
Stock-based compensation expense			(171	)			(111	)
Non-GAAP sales and marketing		$	4,603			$	3,918				17%				18%
GAAP general and administrative		$	2,043			$	3,500
Add back:
Issuance of common stock warrant for services			—				(1,350	)
Stock-based compensation expense			(108	)			(87	)
Non-GAAP general and administrative		$	1,935			$	2,063				(6%)				(6%)
GAAP operating expenses		$	14,227			$	14,844
Add back:
Issuance of common stock warrant for services			—				(1,350	)
Stock-based compensation expense			(664	)			(428	)
Non-GAAP operating expenses		$	13,563			$	13,066				4%				5%

[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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were eGain's fiscal 2027 first-quarter revenue and earnings?

eGain reported $21.9 million in revenue and GAAP net income of $1.551 million, or $0.06 per basic and diluted share, for the quarter ended September 30, 2026. Revenue declined 7% year over year but exceeded the high end of guidance. Prior-year GAAP net income was $2.820 million, or $0.10 per share.

What is eGain's fiscal 2027 full-year outlook?

eGain reiterated expected revenue of $84.5 million–$86.0 million and a GAAP net loss of $2.0 million–$3.0 million for the year ending June 30, 2027. Expected AI customer revenue is $59.5 million–$60.5 million. Expected non-GAAP net income is $1.0 million–$2.0 million.

Does eGain's AI customer revenue measure only revenue from AI features?

No. AI customer revenue includes all SaaS and professional services revenue from customers on eGain's current AI-enabled platform, not only revenue attributable to AI functionality. AI customer annual recurring revenue likewise includes all SaaS subscriptions associated with those customers, rather than only subscriptions attributable to AI functionality.

Why did spending timing help eGain's first-quarter fiscal 2027 profitability?

eGain said first-quarter profitability benefited partly from the timing of sales and marketing spending. Spending is expected to increase during the remainder of the fiscal year as the company expands go-to-market programs, including its Solve26 customer conference and industry-focused initiatives.