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eGain
(NASDAQ:EGAN)
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Rating:66Neutral
Price Target:
$8.00
▲(11.42% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by solid financial fundamentals (strong margins and minimal leverage) and a constructive earnings update highlighting accelerating AI-related ARR and improved retention/profitability. This is tempered by weak technicals (price below key moving averages with negative MACD) and a key financial risk around earnings quality/cash-flow conversion alongside recent free-cash-flow decline.
Positive Factors
High SaaS mix / recurring revenue
A 93% SaaS mix and strong ARR/RPO dynamics create durable recurring revenue and visibility. High subscription penetration reduces revenue volatility, supports predictable renewal/expansion growth and enables long‑term unit economics planning versus one‑time license models.
Negative Factors
Weak cash conversion / earnings quality
OCF materially lagging net income and a significant FCF decline suggest earnings include non‑cash or timing items. Persistent weak cash conversion could undermine sustainability of reported net income, constrain organic investment or force external financing if trends persist.
Read all positive and negative factors
Positive Factors
Negative Factors
High SaaS mix / recurring revenue
A 93% SaaS mix and strong ARR/RPO dynamics create durable recurring revenue and visibility. High subscription penetration reduces revenue volatility, supports predictable renewal/expansion growth and enables long‑term unit economics planning versus one‑time license models.
Read all positive factors
eGain Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down sales across regions to reveal market concentration, growth hotspots, and exposure to currency or economic swings. Knowing where eGain earns revenue helps assess dependence on a single market, potential for expansion, and how regional demand trends will affect future top‑line growth.
Breaks down sales across regions to reveal market concentration, growth hotspots, and exposure to currency or economic swings. Knowing where eGain earns revenue helps assess dependence on a single market, potential for expansion, and how regional demand trends will affect future top‑line growth.
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The FlyeGain (EGAN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$160.31M
Dividend YieldN/A
Average Volume (3M)140.91K
Price to Earnings (P/E)18.1
Beta (1Y)0.89
Revenue Growth3.06%
EPS Growth-72.26%
CountryUS
Employees445
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.32
Shares Outstanding27,450,080
10 Day Avg. Volume211,492
30 Day Avg. Volume140,905
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)2.03
Price to Sales (P/S)1.88
P/FCF Ratio0.00
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.43
Revenue Forecast (FY)$94.12M
eGain Business Overview & Revenue Model
Company Description
eGain Corporation engages in the development, license, implementation, and support of its customer service infrastructure software solutions in North America, Europe, the Middle East, Africa, and the Asia Pacific. It provides eGain AI Agent, which...
How the Company Makes Money
eGain makes money primarily by selling access to its customer engagement and knowledge management software through recurring subscriptions and related support. Its core revenue stream is software subscription revenue from enterprises that license ...
eGain Earnings Call Summary
Earnings Call Date:Sep 03, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Positive
The call was positive overall, supported by Gartner leadership recognition, double-digit AI customer growth, increased new-logo and pipeline momentum, improved full-year profitability, record operating cash flow, and a substantial long-term AI growth opportunity. These positives were tempered by declining legacy revenue and ARR, lower retention and RPO, weaker fourth-quarter profitability metrics, fiscal 2027 guidance for lower total revenue and sharply reduced legacy ARR, and emerging pricing pressure.Positive Updates
Gartner Recognized eGain as a Category Leader
Gartner published its first Magic Quadrant for customer service knowledge management systems and named eGain a leader, positioning it highest for ability to execute and furthest for completeness of vision.
Negative Updates
Fourth-Quarter Revenue Declined Year-over-Year
Fourth-quarter total revenue was $22.2 million versus $23.2 million in the prior-year quarter. Management attributed the year-over-year decline primarily to lower revenue from legacy conversation and analytics customers.
Read all updates
Q4-2026 Updates
Positive
Negative
Gartner Recognized eGain as a Category Leader
Gartner published its first Magic Quadrant for customer service knowledge management systems and named eGain a leader, positioning it highest for ability to execute and furthest for completeness of vision.
Read all positive updates
Company Guidance
For the first quarter of fiscal 2027, eGain expects AI customer revenue of between $13.7 million to $14 million, total revenue of between $20.9 million and $21.4 million, GAAP net income of $500,000 to $1 million or $0.02 to $0.04 per share, non-GAAP net income of $1.4 million to $2 million or $0.05 to $0.08 per share, and adjusted EBITDA of $1.4 million to $1.9 million or a margin of 7% to 9%; for fiscal 2027, it expects AI customer revenue of between $59.5 million to $60.5 million, representing growth approximately of 8% to 10%, total revenue of between $84.5 million and $86 million, a 20% decline in revenue from profitable legacy customers, ARR from AI customers to grow approximately 20%, ARR from legacy customers to decline by 60%, GAAP net loss of $2 million to $3 million or $0.08 to $0.11 per share, non-GAAP net income of $1 million to $2 million or $0.04 to $0.07 per share, adjusted EBITDA of $650,000 to $1.4 million or a margin of 1% to 2%, and weighted average shares outstanding of approximately 26.6 million for the first quarter and 26.8 million for the full fiscal 2027; for fiscal 2030 relative to fiscal 2026, it targets AI customer ARR of between $100 million to $120 million, a 17% to 22% CAGR, total SaaS ARR of $100 million to $120 million, AI customer ARR representing approximately 100% of total SaaS ARR, AI customer revenue of $105 million to $115 million, representing a 17% to 20% CAGR and a 20% plus growth year-over-year by fiscal 2030, total revenue of $110 million to $120 million, representing approximately 15% to 20% growth year-over-year by fiscal 2030, AI customer revenue representing approximately 95% of total revenue, SaaS gross margins of approximately 80%, and an adjusted EBITDA margin that remains positive; non-AI business is expected to be to 0 as we get to the 2030 time frame, and there may be 1 or 2 points pressure over the next 2 to 3 years.eGain Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
63
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 91.14M | 88.43M | 92.80M | 98.01M | 91.95M |
| Gross Profit | 66.85M | 62.01M | 65.21M | 70.70M | 67.41M |
| EBITDA | 8.35M | 5.98M | 11.20M | 4.99M | 318.00K |
| Net Income | 8.88M | 32.25M | 7.78M | 2.11M | -2.44M |
Balance Sheet | |||||
| Total Assets | 148.00M | 148.33M | 128.34M | 130.12M | 126.90M |
| Cash, Cash Equivalents and Short-Term Investments | 73.34M | 62.92M | 70.01M | 73.20M | 72.18M |
| Total Debt | 2.78M | 3.67M | 3.77M | 2.59M | 3.58M |
| Total Liabilities | 63.78M | 67.60M | 69.83M | 68.42M | 69.94M |
| Stockholders Equity | 84.21M | 80.73M | 58.52M | 61.70M | 56.95M |
Cash Flow | |||||
| Free Cash Flow | 0.00 | 4.70M | 12.26M | 4.33M | 7.49M |
| Operating Cash Flow | 0.00 | 5.26M | 12.45M | 4.62M | 8.12M |
| Investing Cash Flow | 0.00 | -565.00K | -198.00K | -288.00K | -628.00K |
| Financing Cash Flow | 0.00 | -14.39M | -15.39M | -4.08M | 3.33M |
eGain Technical Analysis
Negative
7.18
Price Trends
6.90
Negative
7.11
Negative
8.40
Negative
Market Momentum
-0.05
Positive
25.53
Positive
25.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EGAN, the sentiment is Negative. The current price of 7.18 is below the 20-day moving average (MA) of 7.24, above the 50-day MA of 6.90, and below the 200-day MA of 8.40, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 25.53 is Positive, neither overbought nor oversold. The STOCH value of 25.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EGAN.
eGain Risk Analysis
eGain disclosed 39 risk factors in its most recent earnings report. eGain reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
eGain Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.22B | 65.64 | 15.64% | 0.82% | 20.18% | 85.68% | |
74 Outperform | $688.78M | -22.72 | -14.05% | ― | 11.85% | 47.54% | |
74 Outperform | $607.12M | 21.03 | 12.98% | ― | 9.62% | -99.69% | |
68 Neutral | $1.37B | 61.76 | 4.29% | ― | 6.35% | -79.74% | |
66 Neutral | $160.31M | 18.13 | 10.20% | ― | 3.06% | -72.26% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
EGAN
eGain
5.84
-1.88
-24.35%
RDVT
Red Violet
76.14
25.01
48.91%
SPT
Sprout Social
11.36
-4.14
-26.71%
CXM
Sprinklr
5.91
-2.00
-25.28%
VTEX
VTEX
3.61
-0.44
-10.86%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.