eGain Revenue Beats High End of Guidance

The Tip Desk · November 5, 2026 · 4 min read

Fiscal 2027 first-quarter revenue was $21.9 million, above the high end of the company's outlook, as AI customer revenue reached $14.4 million.

eGain (EGAN), a provider of AI-powered knowledge management and customer experience automation, reported fiscal 2027 first-quarter revenue of $21.9 million for the period ended September 30, 2026, down 7% from a year earlier and above the high end of its guidance.

AI customer revenue was $14.4 million, up 7% year over year, and accounted for 66% of total revenue. GAAP SaaS revenue was $20.8 million, down 5%, while professional services revenue was $1.0 million, down 36%. Sequential revenue declined from $22.2 million in the fiscal 2026 fourth quarter.

AI customer annual recurring revenue was $54.5 million as of September 30, 2026, up 11% from a year earlier, and represented 74% of total SaaS ARR. Total SaaS ARR was $73.4 million, down 4% year over year. The company defines AI customer revenue as all revenue from customers on its current AI-enabled platform, including SaaS and professional services, not only amounts attributable to AI functionality.

GAAP net income was $1.6 million, or $0.06 a share, compared with $2.8 million, or $0.10 a share, in the year-ago quarter. Non-GAAP net income was $2.4 million, or $0.09 a share, versus $4.7 million, or $0.17 a share, a year earlier. Adjusted EBITDA was $2.7 million, a 12% margin, compared with $5.0 million, or a 21% margin, in the prior-year quarter. GAAP gross margin was 73%, compared with 75% a year earlier; non-GAAP gross margin was 74%, compared with 76%.

Cash provided by operating activities was $1.8 million, compared with $10.4 million a year earlier. Cash and cash equivalents were $71.3 million as of September 30, 2026, compared with $70.9 million a year earlier. The company repurchased about 644,000 shares at an average $5.64 a share, totaling $3.6 million.

GAAP sales and marketing expense was $4.8 million, up 18% year over year. GAAP general and administrative expense was $2.0 million, down 42%, after a $1.35 million stock-warrant charge in the year-ago period. First-quarter profitability benefited in part from the timing of sales and marketing spending, the company said.

Chief executive Ashu Roy said eGain was named a Leader in Gartner’s inaugural Magic Quadrant for Customer Service Knowledge Management Systems and received the highest product score for the Compliance-Driven Service Center use case in the companion Critical Capabilities report. The company said it is focused on converting that interest into new customers and expansions.

For the second quarter ending December 31, 2026, eGain expects total revenue of $21.0 million to $21.5 million and AI customer revenue of $14.5 million to $14.8 million. It expects a GAAP net loss of $500,000 to GAAP net income of $200,000, or $(0.02) to $0.01 a share, including about $700,000 of stock-based compensation. Non-GAAP net income is expected at $200,000 to $900,000, or $0.01 to $0.03 a share. Adjusted EBITDA is expected between breakeven and $500,000, or a 0% to 2% margin.

The company reiterated full-year fiscal 2027 guidance of total revenue between $84.5 million and $86.0 million and AI customer revenue between $59.5 million and $60.5 million. It expects a GAAP net loss of $2.0 million to $3.0 million, or $0.08 to $0.11 a share, including about $4.0 million of stock-based compensation. Non-GAAP net income is expected at $1.0 million to $2.0 million, or $0.04 to $0.07 a share. Adjusted EBITDA is expected at $650,000 to $1.4 million, or a 1% to 2% margin. The company said it expects sales and marketing spending to increase over the remainder of the fiscal year as it expands go-to-market programs, including its Solve26 conference, and that the reiterated full-year outlook reflects those planned investments and an expected decline in legacy customer revenue.