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1. Company Snapshot

1.a. Company Description

eGain Corporation develops, licenses, implements, and supports customer service infrastructure software solutions in North America, Europe, the Middle East, Africa, and the Asia Pacific.It provides unified cloud software solutions to automate, augment, and orchestrate customer engagement.It also offers subscription services that provides customers with access to its software on a cloud-based platform; and professional services, such as consulting, implementation, and training services.


It serves customers in various industry sectors, including the financial services, telecommunications, retail, government, healthcare, and utilities.The company was incorporated in 1997 and is headquartered in Sunnyvale, California.

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1.b. Last Insights on EGAN

eGain Corporation's recent performance was positively driven by its Q1 2026 earnings beat, with quarterly earnings of $0.17 per share, exceeding the Zacks Consensus Estimate of $0.11 per share. The company's AI knowledge platform for customer service is gaining traction, with Oregon Community Credit Union selecting its eGain AI Knowledge Hub and AI Agent software. Additionally, eGain's $60 million stock repurchase program, increased by $20 million, demonstrates its commitment to shareholder value. Robust financial health, improving margins, and free cash flow margin also contribute to its growth momentum.

1.c. Company Highlights

2. eGain's Strong Q1 Sets Tone for FY '26

eGain Corporation reported a robust start to fiscal 2026, with total revenue rising 8% year-over-year to $23.5 million, driven by a 10% increase in SaaS revenue. The company's non-GAAP gross margin expanded to 76%, up 600 basis points from the previous year, while SaaS gross margin reached 81%. Non-GAAP net income came in at $4.7 million or $0.17 per share, significantly ahead of the previous year's results and beating consensus estimates of $0.11 per share. Adjusted EBITDA margin was 21%, exceeding guidance. The strong financial performance was accompanied by notable new logo wins, including a large New York insurer and a multinational energy company, both of which went live with eGain's solution within 100 days.

Publication Date: Dec -02

📋 Highlights
  • Revenue Growth:: Total revenue rose 8% YoY to $23.5M, with SaaS revenue up 10%.
  • AI Business Expansion:: AI knowledge line achieved 23% ARR growth YoY, driven by client expansions and new logo wins.
  • Profitability Improvements:: Non-GAAP gross margin hit 76% (up 600 bps YoY), with SaaS gross margin at 81%.
  • Strong Cash Flow:: Generated $10.4M cash from operations and $4.7M non-GAAP net income ($0.17/share), up sharply from prior year.
  • Guidance Exceedance:: Adjusted EBITDA margin of 21% exceeded expectations, with FY 2026 revenue projected at $90.5–92M (return to growth).

Operational Highlights

The company's AI knowledge line of business saw ARR growth of 23% year-over-year, driven by existing clients expanding their knowledge implementations to add AI agent products. eGain recently announced three new product capabilities: AI knowledge method, AI agent 2.0, and eGain Composer, which are expected to drive further growth. The company is seeing a trend of customers realizing the need for access to data behind AI, helped by the proliferation of "dumb agents". The eGain Composer product is a new target for developers, allowing integration with various GenAI engines.

Guidance and Outlook

For Q2, eGain expects total revenue of $22.3-22.8 million, and for the full fiscal year, it expects total revenue of $90.5-92 million, representing a return to growth. Non-GAAP net income is expected to be $8.3-9.8 million, and adjusted EBITDA is expected to be $10.4-11.9 million. The company has also announced new hires, including a VP of Marketing, VP of Product Marketing, and VP of Finance, which will support its growth plans. The expected increase in outstanding shares has a 1% impact on EPS guidance for FY '26.

Valuation and Growth Prospects

With a P/E Ratio of 8.14 and an EV/EBITDA of 37.39, the market is pricing in significant growth expectations. The company's ROIC of 29.18% and ROE of 53.02% indicate strong profitability. Analysts estimate revenue growth of 3.6% for next year, which may be conservative given the company's strong Q1 results and growth prospects. The proliferation of new products and the pipeline of 7-figure knowledge hub opportunities with a high pilot conversion rate position eGain for sustainable growth and profitability.

3. NewsRoom

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Oregon Community Credit Union Selects eGain AI Knowledge Hub™ and eGain AI Agent™ to Elevate Customer Service

Nov -18

Source: globenewswire.com

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Acadian Asset Management LLC Has $5.96 Million Position in eGain Corporation $EGAN

Nov -14

Source: defenseworld.net

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eGain to Participate in the Roth Technology Conference on November 19, 2025

Nov -13

Source: globenewswire.com

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eGain Corporation (EGAN) Q1 2026 Earnings Call Transcript

Nov -13

Source: seekingalpha.com

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eGain (EGAN) Q1 Earnings and Revenues Top Estimates

Nov -12

Source: zacks.com

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eGain Announces First Quarter 2026 Financial Results

Nov -12

Source: globenewswire.com

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eGain to Announce Fiscal 2026 First Quarter Financial Results on November 12, 2025

Nov -04

Source: globenewswire.com

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eGain (EGAN) Soars 6.0%: Is Further Upside Left in the Stock?

Oct -22

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.81%)

6. Segments

Software-as-a Service

Expected Growth: 4%

eGain Corporation's Software-as-a-Service growth is driven by increasing demand for cloud-based customer engagement solutions, expansion into new industries, and growing adoption of AI-powered chatbots for customer service. Additionally, the need for remote work and digital transformation during the pandemic has accelerated the shift to SaaS, contributing to the company's 4-level growth.

Professional Services

Expected Growth: 2%

eGain Corporation's Professional Services segment growth is driven by increasing demand for digital transformation, adoption of cloud-based solutions, and need for customer experience improvement. Additionally, the company's expertise in AI-powered customer engagement and knowledge management solutions also contributes to its growth.

Legacy

Expected Growth: 1%

eGain Corporation's legacy segment growth is driven by increasing adoption of cloud-based customer engagement solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on AI-powered customer service and knowledge management has led to increased demand from existing clients, resulting in a high level of growth.

7. Detailed Products

eGain Messaging Platform

A cloud-based messaging platform that enables businesses to engage with customers across various messaging channels, including SMS, WhatsApp, Facebook Messenger, and more.

eGain Virtual Assistant

An AI-powered virtual assistant that uses natural language processing (NLP) to understand customer inquiries and provide personalized responses.

eGain Knowledge Hub

A knowledge management platform that enables businesses to create, manage, and share knowledge across the organization.

eGain Analytics

A analytics platform that provides real-time insights into customer interactions, enabling businesses to optimize their customer experience strategies.

eGain Offer Management

A platform that enables businesses to create, manage, and optimize personalized offers and promotions across various channels.

eGain Community

A community platform that enables businesses to create online forums, discussion boards, and idea portals to engage with customers and gather feedback.

8. eGain Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

eGain Corporation's products and services are highly specialized, reducing the threat of substitutes. However, the company's reliance on technology and software solutions makes it vulnerable to potential substitutes in the future.

Bargaining Power Of Customers

eGain Corporation's customers are primarily large enterprises, which reduces their bargaining power. The company's products and services are also highly customized, making it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

eGain Corporation relies on a few key suppliers for its technology and infrastructure. While the company has some bargaining power due to its size and reputation, its suppliers still have some leverage.

Threat Of New Entrants

The customer service and contact center software market is highly competitive, but eGain Corporation's established brand and customer base make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The customer service and contact center software market is highly competitive, with several established players competing for market share. eGain Corporation must continually innovate and improve its products and services to stay ahead of its rivals.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.03%
Debt Cost 3.95%
Equity Weight 95.97%
Equity Cost 6.71%
WACC 6.60%
Leverage 4.20%

11. Quality Control: eGain Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
eGain

A-Score: 4.8/10

Value: 2.5

Growth: 5.4

Quality: 8.5

Yield: 0.0

Momentum: 10.0

Volatility: 2.3

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Enfusion

A-Score: 4.5/10

Value: 0.7

Growth: 7.0

Quality: 5.7

Yield: 0.0

Momentum: 8.0

Volatility: 5.3

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BigCommerce

A-Score: 3.9/10

Value: 4.7

Growth: 7.2

Quality: 2.5

Yield: 0.0

Momentum: 3.0

Volatility: 5.7

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Compass

A-Score: 3.8/10

Value: 4.4

Growth: 5.7

Quality: 2.8

Yield: 0.0

Momentum: 7.5

Volatility: 2.7

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EZFill

A-Score: 3.7/10

Value: 8.4

Growth: 4.3

Quality: 4.9

Yield: 0.0

Momentum: 4.0

Volatility: 0.7

1-Year Total Return ->

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Asure Software

A-Score: 3.5/10

Value: 4.8

Growth: 4.1

Quality: 4.5

Yield: 0.0

Momentum: 3.0

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.08$

Current Price

10.08$

Potential

-0.00%

Expected Cash-Flows