eGain (EGAN) investor relations material

Executive summary

• Q3 2026 revenue reached $22.5 million, up 7% year-over-year, driven by SaaS and AI Knowledge business momentum, with profitability exceeding expectations.

• AI Knowledge ARR grew 26% year-over-year to $48.0 million, now 64% of total SaaS ARR, supported by customer expansion and increased RFP activity.

• Non-GAAP net income for Q3 was $3.2 million ($0.11–$0.12/share), up from $765,000 ($0.03/share) a year ago; GAAP net income was $2.4 million ($0.09/share), up from $66,000.

• Adjusted EBITDA margin improved to 14% from 6% a year ago, with operating cash flow for the nine months at $18.7 million (27% margin).

• Product innovation included launches for retail banking, Cisco Webex Contact Center, and connectors for Microsoft Teams, Slack, Zoom, and major AI development environments.

Financial highlights

• SaaS revenue grew 7% year-over-year to $20.9 million, representing 93% of total revenue; professional services revenue was $1.6 million, up 9%.

• Non-GAAP gross margin was 74%, up from 69% a year ago; GAAP gross margin was 73%–74%.

• Ended quarter with $80.5 million in cash and no debt, providing strong financial flexibility.

• For the nine months, total revenue was $69.0 million (up 6%), GAAP net income was $7.6 million, and non-GAAP net income was $10.9 million.

• Adjusted EBITDA for the nine months was $11.5 million (17% margin), up from $4.2 million (6% margin) last year.

Outlook and guidance

• Q4 2026 revenue expected between $21.5 million and $22.0 million.

• Q4 2026 GAAP net loss of $300,000 to net income of $400,000; non-GAAP net income of $600,000 to $1.3 million.

• FY 2026 revenue guidance of $90.5 million to $91.0 million; GAAP net income of $7.0 million to $7.8 million; non-GAAP net income of $11.3 million to $12.1 million.

• FY 2026 adjusted EBITDA expected between $11.9 million and $12.4 million (13% margin).

• Management expects double-digit AI Knowledge ARR growth in 2027, driven by new logos and expansion in existing accounts.