eGain (EGAN) investor relations material

Executive summary

• Total Q2 revenue was $23.0 million, up 3% year-over-year, with SaaS revenue of $21.8 million, up 5% year-over-year, and notable customer wins including Achmea and other major clients.

• AI Knowledge Hub ARR grew 27% year-over-year, now representing 64% of total SaaS ARR, with significant expansion in partner-sourced leads and logos.

• Non-GAAP net income for Q2 was $3.0 million ($0.11 per share), more than doubling year-over-year; GAAP net income was $2.3 million ($0.09 per share).

• Adjusted EBITDA margin improved to 14% from 7% year-over-year, and operating cash flow for Q2 was $10.1 million (44% margin), with cash and equivalents at $83.1 million.

• Product-led growth, increased brand awareness, and strategic focus on AI solutions are driving robust bookings and top-of-funnel leads.

Financial highlights

• SaaS revenue comprised 95% of total revenue, up from 93% a year ago; professional services revenue declined 23% year-over-year.

• Non-GAAP gross margin was 74% (up from 71%); SaaS gross margin was 80% (up from 78%).

• Operating margin expanded to 9% from 3% year-over-year; operating income for the quarter was $2.0 million, up from $650,000.

• Cash and cash equivalents at quarter-end were $83.1 million, up from $62.9 million as of June 30, 2025.

• Deferred revenue was $44.4 million as of December 31, 2025.

Outlook and guidance

• Q3 2026 revenue expected between $22.2 million and $22.7 million; non-GAAP net income of $1.8–$2.3 million ($0.06–$0.08 per share); adjusted EBITDA of $2.6–$3.1 million (12–14% margin).

• Fiscal 2026 revenue expected between $90.5 million and $92.0 million, with GAAP net income of $4.5–$6.0 million ($0.16–$0.21 per share) and non-GAAP net income of $8.8–$10.3 million ($0.31–$0.36 per share).

• Adjusted EBITDA for the year projected at $10.9–$12.4 million (12–13% margin).

• Remaining performance obligations were $84.9 million, with $53.0 million expected to be recognized as revenue within one year.