eGain Communications Corporation ( (EGAN) ) has released its Q1 earnings. Here is a breakdown of the information eGain Communications Corporation presented to its investors.
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eGain Communications Corporation is a company specializing in AI customer experience automation, offering solutions that enhance customer service operations across various industries. In its first quarter of fiscal 2026, eGain reported revenue at the high end of its guidance and exceeded its EBITDA expectations, showcasing a robust start to the fiscal year. The company highlighted a 23% year-over-year growth in its AI Knowledge Hub’s Annual Recurring Revenue, contributing significantly to its overall SaaS ARR.
Key financial metrics for the quarter included a total revenue of $23.5 million, marking an 8% increase from the previous year. The company’s GAAP gross margin improved to 75%, and its non-GAAP gross margin reached 76%. Notably, eGain’s GAAP net income rose to $2.8 million, or $0.10 per share, compared to $652,000, or $0.02 per share, in the same quarter last year. Non-GAAP net income also saw a substantial increase to $4.7 million, or $0.17 per share. The company reported a strong operating cash flow margin of 44%, with cash and cash equivalents totaling $70.9 million.
eGain’s strategic focus on AI-driven solutions was underscored by the launch of three new AI products at its recent Solve25 event, which have garnered significant interest from customers and partners. The company’s adjusted EBITDA for the quarter was $5.0 million, representing a 21% margin, a notable improvement from the previous year’s 6% margin. Additionally, eGain repurchased approximately 231,000 shares at an average price of $6.38 per share.
Looking ahead, eGain’s management has provided guidance for the second quarter and the full fiscal year 2026, projecting total revenue between $90.5 million to $92.0 million for the year. The company anticipates continued growth in its AI solutions and remains optimistic about its ability to deliver value to its customers and shareholders. eGain’s strategic initiatives and financial performance position it well for future success in the competitive AI customer experience market.