eGain (EGAN) investor relations material

Executive summary

• Fiscal 2025 ended with strong bookings, revenue growth, and improved profitability, highlighted by a major JPMorgan Chase deal and a strategic focus on AI knowledge solutions.

• AI Knowledge ARR grew 25% year over year in Q4 FY25, now 59% of SaaS ARR, with net retention rising to 115% from 98% a year ago.

• Revenue stabilized in Q4 FY25 at $23.2M, up 11% sequentially and 3% year over year, with SaaS revenue up 6% and improved gross margins.

• Full-year 2025 revenue was $88.4M, down 5% year over year, but profitability improved significantly due to a $29M tax benefit.

• Board approved a $20M increase in the stock repurchase program, raising the total authorization to $60M.

Financial highlights

• Q4 FY25 revenue was $23.2M (+11% sequentially, +3% y-o-y); SaaS revenue: $21.7M (+6% y-o-y).

• Q4 GAAP net income was $30.9M ($1.13/share basic), including a $29M one-time tax benefit; non-GAAP net income was $2.4M ($0.09/share).

• Q4 adjusted EBITDA margin was 19%, up from 11% a year ago.

• FY25 revenue was $88.4M, down 5% YoY; SaaS gross margin improved to 78%.

• Cash and equivalents at year-end were $62.9M, down from $70M last year.

Outlook and guidance

• Q1 FY26 revenue expected between $23M–$23.5M; GAAP net income $0.9M–$1.6M; adjusted EBITDA $3.7M–$4.4M.

• FY26 revenue guidance: $90.5M–$92M; GAAP net income $3.5M–$5M; non-GAAP net income $8.3M–$9.8M.

• Adjusted EBITDA for FY26 projected at $10.4M–$11.9M (11%–13% margin); gross margin expected to expand to 74%–75%.

• Targeting 20%+ ARR growth in core AI knowledge, offset by sunsetting messaging product (current ARR impact ~$4.7M).

• R&D investment to increase by 6% YoY in FY26.