eGain Guides Fiscal 2027 Revenue Below $91 Million
The knowledge-management software maker posted $22.2 million of fourth-quarter sales and said it expects $84.5 million to $86.0 million for the year ending June 30, 2027.
eGain (EGAN), a provider of AI-powered knowledge management and customer-experience automation, guided fiscal 2027 total revenue to $84.5 million to $86.0 million, below the $91.1 million it reported for the year ended June 30, 2026.
The Sunnyvale, California-based company said it expects AI customer revenue of $59.5 million to $60.5 million in that period. It also guided a GAAP net loss of $2.0 million to $3.0 million, or $0.08 to $0.11 a share, and adjusted EBITDA of $650,000 to $1.4 million, or a 1% to 2% margin. Non-GAAP net income is expected at $1.0 million to $2.0 million.
Chief executive Ashu Roy said fiscal 2026 was a pivotal year and that the 3% full-year revenue increase reflected 20% year-over-year growth in AI customer revenue plus a managed decline in the profitable legacy business. He said the company is all in on the AI Knowledge opportunity as it enters fiscal 2027.
For the quarter ended June 30, 2026, total revenue was $22.2 million, compared with $23.2 million a year earlier and $22.5 million in the fiscal 2026 third quarter. AI customer revenue grew 11% year over year. SaaS revenue was $20.7 million and professional services $1.5 million; the company’s growth tables showed GAAP SaaS down 5% and professional services down 4% versus the year-ago quarter.
GAAP and non-GAAP gross margin were each 72%, versus 73% a year earlier. Adjusted EBITDA was $2.2 million, a 10% margin, versus $4.5 million, or a 19% margin, a year earlier. Non-GAAP net income was $2.1 million, or $0.08 a share, versus $2.4 million, or $0.09 a share. GAAP net income was $1.3 million, or $0.05 a share, versus $30.9 million a year earlier, when a roughly $29.0 million tax benefit from releasing a valuation allowance was included. Income from operations was $1.1 million.
GAAP sales and marketing rose to $5.6 million from $4.6 million a year earlier; non-GAAP sales and marketing rose 19% to $5.5 million. Research and development was $7.3 million. General and administrative expense was $1.9 million.
For the full year ended June 30, 2026, total revenue was $91.1 million, compared with $88.4 million a year earlier. SaaS revenue was $85.3 million and professional services $5.9 million. GAAP gross margin was 73% and non-GAAP gross margin 74%. Full-year GAAP net income was $8.9 million, or $0.33 basic and $0.32 diluted a share, including the same valuation-allowance tax benefit. Non-GAAP net income was $13.0 million, or $0.48 basic and $0.47 diluted a share. Adjusted EBITDA was $13.6 million, a 15% margin. Cash provided by operating activities was $21.2 million. The company repurchased about 1.61 million shares at an average of $7.16 a share, totaling $11.5 million.
AI customer annual recurring revenue grew 13% year over year and represented 72% of total SaaS ARR as of June 30, 2026. Cash and cash equivalents were $73.3 million.
Roy said Gartner’s decision to create a dedicated Magic Quadrant for Customer Service Knowledge Management Systems and to name eGain a Leader in its inaugural edition validates the category and the company’s position. He described AI Knowledge as emerging as a distinct operating layer in the enterprise rather than another point application.
For the first quarter of fiscal 2027 ending September 30, 2026, eGain expects total revenue of $20.9 million to $21.4 million and AI customer revenue of $13.7 million to $14.0 million. GAAP net income is guided at $500,000 to $1.1 million, or $0.02 to $0.04 a share, including about $900,000 of stock-based compensation. Non-GAAP net income is expected at $1.4 million to $2.0 million, or $0.05 to $0.08 a share. Adjusted EBITDA is guided at $1.4 million to $1.9 million, or a 7% to 9% margin. Weighted-average shares are expected at about 26.6 million for that quarter and 26.8 million for the full fiscal year.