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eGain Announces Fourth Quarter and Fiscal Year 2025 Financial Results and $20 Million Stock Repurchase Program Expansion

1. eGain reports $23.2 million revenue, up 11% sequentially. 2. GAAP net income reached $30.9 million due to tax benefits. 3. Increased stock repurchase program to $60 million indicates undervaluation. 4. Fiscal 2026 revenue guidance between $90.5-$92 million anticipated. 5. Strong demand in AI CX automation market emphasizes growth potential.

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Why Bullish?

Strong revenue growth and profitability position eGain well despite overall revenue decline. Historical examples show that similar positive earnings surprises often lead to stock price jumps.

How important is it?

Earnings guidance and significant stock repurchase reflect strong company confidence and potential for improved market performance.

Why Short Term?

Immediate investor reactions to earnings reports typically affect stock prices quickly, as seen in previous earnings release reactions.

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September 04, 2025 16:54 ET  | Source: eGain Corporation SUNNYVALE, Calif., Sept. 04, 2025 (GLOBE NEWSWIRE) -- eGain (Nasdaq: EGAN), the AI knowledge management platform for service, today announced financial results for its fiscal 2025 fourth quarter and full fiscal year ended June 30, 2025. “We are pleased to close fiscal 2025 with solid bookings and strong profitability,” said Ashu Roy, eGain’s CEO. “With one of our largest deals ever signed this quarter and healthy demand in the pipeline, we are well-positioned to capture the compelling opportunity in AI CX automation powered by trusted knowledge.” Fiscal 2025 Fourth Quarter Financial Highlights Total revenue was $23.2 million, up 11% sequentially and 3% year over year.GAAP net income was $30.9 million, or $1.13 per share on a basic basis and $1.11 per share on a diluted basis, compared to GAAP net income of $1.5 million, or $0.05 per share on a basic and diluted basis, in Q4 2024. This includes the impact of a tax benefit of approximately $29.0 million from the release of a majority of the company’s valuation allowance in Q4 2025.Adjusted EBITDA was $4.5 million, a 19% margin, compared to $2.4 million, an 11% margin in Q4 2024.Total shares repurchased were approximately 630,000 at an average price of $5.97 per share, totaling $3.8 million. Fiscal 2025 Full Year Financial Highlights Total revenue was $88.4 million, down 5% year over year.GAAP net income was $32.3 million, or $1.15 per share on a basic basis and $1.13 per share on a diluted basis, compared to GAAP net income of $7.8 million, or $0.25 per share on a basic and diluted basis. This includes the impact of a tax benefit of approximately $29.0 million from the release of a majority of the company’s valuation allowance in fiscal 2025.Adjusted EBITDA was $8.6 million, a 10% margin, compared to $11.2 million, a 12% margin in fiscal 2024.Cash provided by operations for fiscal 2025 was $5.3 million, or an operating cash flow margin of 6%.Total cash and cash equivalents as of June 30, 2025 were $62.9 million, compared to $70.0 million as of June 30, 2024.Total shares repurchased were approximately 2,616,000 at an average price of $6.03 per share, totaling $15.8 million. Fiscal 2026 First Quarter and Fiscal 2026 Financial Guidance For the first quarter of fiscal 2026 ending September 30, 2025, eGain expects: Total revenue of between $23.0 million to $23.5 million.GAAP net income of $900,000 to $1.6 million, or $0.03 to $0.06 per share. Includes stock-based compensation expense of approximately $800,000.Includes warrant expense of approximately $1.4 million. Non-GAAP net income of $3.1 million to $3.8 million, or $0.11 to $0.14 per share.Adjusted EBITDA of $3.7 million to $4.4 million, or margin of 16% to 19%. For the fiscal 2026 full year ending June 30, 2026, eGain expects: Total revenue of between $90.5 million to $92.0 million.GAAP net income of $3.5 million to $5.0 million, or $0.13 to $0.18 per share. Includes stock-based compensation expense of approximately $3.4 million.Includes warrant expense of approximately $1.4 million. Non-GAAP net income of $8.3 million to $9.8 million, or $0.30 to $0.36 per share.Adjusted EBITDA of $10.4 million to $11.9 million, or margin of 11% to 13%. Guidance Assumption: Weighted average shares outstanding are expected to be approximately 27.5 million for each of the first quarter of fiscal 2026 and for the full fiscal year 2026. Stock Repurchase Program eGain also announced today that its Board of Directors approved a $20 million increase in its stock repurchase program, bringing the aggregate amount eGain may purchase from $40 million to $60 million of its outstanding common stock. The stock repurchase program will be funded using existing cash or future cash flows. “Our strong balance sheet allows us to focus on driving long-term shareholder value. This increased authorization underscores our belief that our shares are undervalued and demonstrates our confidence in the AI knowledge market opportunity,” said Ashu Roy, eGain’s CEO. Non-GAAP Financial Measures This press release includes certain non-GAAP financial measures as supplemental information relating to eGain’s operating results, including adjusted EBITDA and non-GAAP net income. Adjusted EBITDA is defined as net income, adjusted for the impact of depreciation and amortization, stock-based compensation expense, interest income, net, provision for income taxes, benefit from income taxes related to the release of valuation allowance, other expense, net and severance and related charges. Non-GAAP net income measure is adjusted for benefit from income taxes related to the release of valuation allowance and stock-based compensation expense. eGain’s management has analyzed the effect of these non-GAAP adjustments on our benefit from (provision for) income taxes and believes the change in our benefit from (provision for) income taxes would be substantial due to these non-GAAP adjustments including the release of the full valuation allowance for all U.S. deferred tax assets except California net operating losses and research and development credits. Non-GAAP results are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, or GAAP, and may be different from non-GAAP measures used by other companies. eGain’s management uses these non-GAAP measures to compare our performance to that of prior periods for trend analysis and for budgeting and planning purposes. eGain believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies, many of which present similar non-GAAP financial measures to investors, and that it allows for greater transparency with respect to key metrics used by management in our financial and operational decision-making. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release. eGain urges investors to review the reconciliation and not to rely on any single financial measure to evaluate our business. In addition, this press release includes eGain’s projected non-GAAP net income for future periods, a non-GAAP measure used to describe eGain’s expected performance. We have not presented a reconciliation to eGain’s projected net income, the most comparable GAAP financial measure, because the reconciliation could not be prepared without unreasonable effort. The information necessary to prepare the reconciliation is not available on a forward-looking basis and cannot be accurately predicted. The unavailable information could have a significant impact on the calculation of the comparable GAAP financial measure. Conference Call Information eGain will discuss its fiscal 2025 fourth quarter and full year results today via a teleconference at 2:00 p.m. Pacific Time. To access the live call, dial 844-481-2704 (U.S. toll free) or +1 412-317-0660 (International) and ask to join the eGain earnings call. A live and archived webcast of the call will also be accessible on the “Investor relations” section of eGain’s website at www.egain.com. In addition, a phone replay of the conference call will be available starting two hours after the call and will remain in effect for one week. To access the phone replay, dial 877-344-7529 (U.S. toll free) or +1 412-317-0088 (International). The replay access code is 2639200. About eGain eGain AI Knowledge Hub helps businesses improve experience and reduce cost by delivering trusted, consumable answers. Visit www.eGain.com for more info. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation: our financial guidance for the first quarter of fiscal 2026 and fiscal 2026 full year ending June 30, 2026; our focus; demand for our products and market opportunity; our sales pipeline; and our belief that our shares are undervalued. The achievement or success of the matters covered by such forward-looking statements, including future financial guidance, involves risks, uncertainties, and assumptions, many of which involve factors or circumstances that are beyond our control. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our actual results could differ materially from the results expressed or implied by the forward-looking statements we make, including our ability to achieve our targets for the first quarter of fiscal 2026 and fiscal 2026 full year ending June 30, 2026. The risks and uncertainties referred to above include, but are not limited to: risks to our business, operating results, and financial condition; the pace of technological advancements in generative AI and the adaptability of our services to incorporate these advancements; market demand for AI-enabled solutions; risks associated with new product releases and new services and products features; risks that customer demand may fluctuate or decrease; risks that we are unable to collect unbilled contractual commitments, particularly in the current economic environment; risks that our lengthy sales cycles may negatively affect our operating results; currency risks; our ability to capitalize on customer engagement; risks related to our reliance on a relatively small number of customers for a substantial portion of our revenue; our ability to compete successfully and manage growth; our ability to develop and expand strategic and third-party distribution channels; risks related to our international operations; our ability to continue to innovate; our strategy of making investments in sales to drive growth; general political or destabilizing events, including war, intensified international hostilities, conflict or acts of terrorism; the effect of legislative initiatives or proposals, statutory changes, governmental or other applicable regulations and/or changes in industry requirements, including those addressing data privacy, cyber-security and cross-border data transfers; and other risks detailed from time to time in eGain’s public filings, including eGain’s annual report on Form 10-K for the fiscal year ended June 30, 2024 and subsequent reports filed with the Securities and Exchange Commission, which are available on the Securities and Exchange Commission’s website at www.sec.gov. These forward-looking statements are based on current expectations and speak only as of the date hereof. We assume no obligation and do not intend to update these forward-looking statements, except as required by law. eGain, the eGain logo, and all other eGain product names and slogans are trademarks or registered trademarks of eGain Corporation in the United States and/or other countries. All other company names and products mentioned in this release may be trademarks or registered trademarks of the respective companies. Investor RelationsTodd Kehrli or Jim ByersPondelWilkinson, Inc.tkehrli@pondel.comjbyers@pondel.com        eGain CorporationCondensed Consolidated Balance Sheets(in thousands, except par value data)(unaudited)         June 30,  June 30,    2025   2024 ASSETS      Current assets:      Cash and cash equivalents $62,909  $70,003 Restricted cash  8   8 Accounts receivable, less provision for credit losses of $7 and $59 as of June 30, 2025 and 2024, respectively  32,775   31,731 Costs capitalized to obtain revenue contracts, net  1,148   1,272 Prepaid expenses  2,841   2,915 Other current assets  886   1,195 Total current assets  100,567   107,124 Property and equipment, net  670   441 Operating lease right-of-use assets  3,530   3,811 Costs capitalized to obtain revenue contracts, net of current portion  1,460   1,779 Goodwill  13,186   13,186 Other assets, net  28,592   1,511 Total assets $148,005  $127,852               LIABILITIES AND STOCKHOLDERS’ EQUITY       Current liabilities:      Accounts payable $2,596  $2,725 Accrued compensation  6,749   7,642 Accrued liabilities  2,821   5,078 Operating lease liabilities  1,220   1,179 Deferred revenue  48,765   45,989 Total current liabilities  62,151   62,613 Deferred revenue, net of current portion  1,766   3,280 Operating lease liabilities, net of current portion  2,449   2,592 Other long-term liabilities  908   871 Total liabilities  67,274   69,356 Stockholders’ equity:      Common stock, $0.001 par value per share – authorized: 60,000 shares; issued: 33,237 and 32,698 shares; outstanding: 27,083 and 29,160 shares as of June 30, 2025 and 2024, respectively.  33   33 Additional paid-in capital  411,253   407,416 Treasury stock, at cost: 6,154 and 3,538 common shares as of June 30, 2025 and 2024, respectively.  (38,812)  (23,031)Notes receivable from stockholders  —   (21)Accumulated other comprehensive loss  (336)  (2,240)Accumulated deficit  (291,407)  (323,661)Total stockholders’ equity  80,731   58,496 Total liabilities and stockholders’ equity $148,005  $127,852                      eGain CorporationCondensed Consolidated Statements of Operations(in thousands, except per share data)(unaudited)               Three Months Ended  Year Ended   June 30,  June 30,    2025   2024   2025   2024 Revenue:            SaaS $21,691  $20,439  $81,921  $85,082 Professional services  1,543   2,023   6,510   7,721 Total revenue  23,234   22,462   88,431   92,803 Cost of revenue:            Cost of SaaS  4,233   4,871   17,975   19,514 Cost of professional services  2,121   2,035   8,448   8,078 Total cost of revenue  6,354   6,906   26,423   27,592 Gross profit  16,880   15,556   62,008   65,211 Operating expenses:            Research and development  6,961   6,679   29,604   26,626 Sales and marketing  4,641   5,214   19,356   22,115 General and administrative  2,031   2,471   8,615   10,499 Total operating expenses  13,633   14,364   57,575   59,240 Income from operations  3,247   1,192   4,433   5,971 Interest income, net  440   865   2,469   3,798 Other expense, net  (390)  (38)  (1,265)  (51)Income before income tax benefit (provision)  3,297   2,019   5,637   9,718 Benefit from (provision for) income taxes  27,568   (513)  26,617   (1,938)Net income $30,865  $1,506  $32,254  $7,780              Per share information:            Earnings per share:            Basic $1.13  $0.05  $1.15  $0.25 Diluted $1.11  $0.05  $1.13  $0.25 Weighted-average shares used in computation:            Basic  27,324   29,724   28,161   30,840 Diluted  27,750   30,302   28,650   31,468              Summary of stock-based compensation included in the costs and expenses above:            Cost of revenue $186  $313  $865  $1,237 Research and development  117   329   640   1,424 Sales and marketing  75   169   352   645 General and administrative  118   205   592   1,223 Total stock-based compensation $496  $1,016  $2,449  $4,529                            eGain CorporationGAAP to Non-GAAP Reconciliation Table(in thousands, except per share data)(unaudited)               Three Months Ended  Year Ended   June 30,  June 30,   2025 2024 2025 2024Income from operations $3,247 $1,192 $4,433 $5,971Add:            Stock-based compensation  496  1,016  2,449  4,529Non-GAAP income from operations $3,743 $2,208 $6,882 $10,500                 Three Months Ended  Year Ended   June 30,  June 30,    2025   2024   2025   2024 Net income $30,865  $1,506  $32,254  $7,780 Add:            Depreciation and amortization  77   91   340   387 Stock-based compensation expense  496   1,016   2,449   4,529 Interest income, net  (440)  (865)  (2,469)  (3,798)Provision for income taxes  1,396   513   2,347   1,938 Benefit from income taxes related to the release of valuation allowance  (28,964)  —   (28,964)  — Other expense, net  390   38   1,265   51 Severance and related charges  648   104   1,407   351 Adjusted EBITDA $4,468  $2,403  $8,629  $11,238                  Three Months Ended  Year Ended   June 30,  June 30,    2025  2024  2025  2024Net income $30,865  $1,506 $32,254  $7,780Add:            Benefit from income taxes related to the release of valuation allowance  (28,964)  —  (28,964)  —Stock-based compensation  496   1,016  2,449   4,529Non-GAAP net income $2,397  $2,522 $5,739  $12,309Per share information:            Non-GAAP earnings per share:            Basic $0.09  $0.08 $0.20  $0.40Diluted $0.09  $0.08 $0.20  $0.39Weighted-average shares used in computation:            Basic  27,324   29,724  28,161   30,840Diluted  27,750   30,302  28,650   31,468               eGain CorporationOther GAAP to Non-GAAP Supplemental Financial Information(in thousands)(unaudited)               Three Months EndedJune 30, Growth Rates Constant Currency Growth Rates [1]   2025   2024       Revenue:            GAAP SaaS $21,691  $20,439   6%  5%GAAP professional services  1,543   2,023   (24%)  (25%)Total GAAP revenue $23,234  $22,462   3%  2%             Cost of Revenue:            GAAP SaaS $4,233  $4,871       Non-GAAP SaaS $4,233  $4,871                    GAAP professional services $2,121  $2,035       Add back:            Stock-based compensation  (186)  (313)      Non-GAAP professional services $1,935  $1,722                    GAAP total cost of revenue $6,354  $6,906       Add back:            Stock-based compensation  (186)  (313)      Non-GAAP total cost of revenue $6,168  $6,593   (6%)  (7%)             Gross Profit:            Non-GAAP SaaS $17,458  $15,568       Non-GAAP professional services  (392)  301       Non-GAAP gross profit $17,066  $15,869   8%  6%             Operating expenses:            GAAP research and development $6,961  $6,679       Add back:            Stock-based compensation expense  (117)  (329)      Non-GAAP research and development $6,844  $6,350   8%  7%             GAAP sales and marketing $4,641  $5,214       Add back:            Stock-based compensation expense  (75)  (169)      Non-GAAP sales and marketing $4,566  $5,045   (9%)  (11%)             GAAP general and administrative $2,031  $2,471       Add back:            Stock-based compensation expense  (118)  (205)      Non-GAAP general and administrative $1,913  $2,266   (16%)  (17%)             GAAP operating expenses $13,633  $14,364       Add back:            Stock-based compensation expense  (310)  (703)      Non-GAAP operating expenses $13,323  $13,661   (2%)  (3%)  [1] Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at the exchange rates in effect during the prior period presented rather than the actual exchange rates in effect during the current period.              eGain CorporationOther GAAP to Non-GAAP Supplemental Financial Information(in thousands)(unaudited)               Year EndedJune 30, Growth Rates Constant Currency Growth Rates [1]   2025   2024       Revenue:            GAAP SaaS $81,921  $85,082   (4%)  (4%)GAAP professional services  6,510   7,721   (16%)  (16%)Total GAAP revenue $88,431  $92,803   (5%)  (5%)             Cost of Revenue:            GAAP SaaS $17,975  $19,514       Non-GAAP SaaS $17,975  $19,514                    GAAP professional services $8,448  $8,078       Add back:            Stock-based compensation  (865)   (1,237)       Non-GAAP professional services $7,583  $6,841                    GAAP total cost of revenue $26,423  $27,592       Add back:            Stock-based compensation  (865)   (1,237)       Non-GAAP total cost of revenue $25,558  $26,355   (3%)  (3%)             Gross Profit:            Non-GAAP SaaS $63,946  $65,568       Non-GAAP professional services  (1,073)   880       Non-GAAP gross profit $62,873  $66,448   (5%)  (6%)             Operating expenses:            GAAP research and development $29,604  $26,626       Add back:            Stock-based compensation expense  (640)   (1,424)       Non-GAAP research and development $28,964  $25,202   15%  15%             GAAP sales and marketing $19,356  $22,115       Add back:            Stock-based compensation expense  (352)   (645)       Non-GAAP sales and marketing $19,004  $21,470   (11%)  (12%)             GAAP general and administrative $8,615  $10,499       Add back:            Stock-based compensation expense  (592)   (1,223)       Non-GAAP general and administrative $8,023  $9,276   (14%)  (14%)             GAAP operating expenses $57,575  $59,240       Add back:            Stock-based compensation expense  (1,584)   (3,292)       Non-GAAP operating expenses $55,991  $55,948   0%  0%  [1] Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at the exchange rates in effect during the prior period presented rather than the actual exchange rates in effect during the current period.

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