eGain (EGAN) Q1 2027 earnings summary

Executive summary

• Q1 FY27 revenue was $21.9M, down 7% YoY, but exceeded the high end of guidance; AI customer revenue grew 7% to $14.4M and AI customer ARR rose 11% to $54.5M.

• FY27 guidance was reiterated as legacy runoff and higher planned go-to-market spending shape the transition.

Financial highlights

• SaaS revenue was $20.8M, down 5% YoY; professional services revenue was $1.0M, down 36%.

• GAAP net income was $1.6M, or $0.06/share, vs. $2.8M, or $0.10/share; non-GAAP net income was $2.4M, or $0.09/share, vs. $4.7M, or $0.17/share.

• Non-GAAP total gross margin was 74% vs. 76% YoY; non-GAAP SaaS gross margin was 78% vs. 81%.

• Adjusted EBITDA was $2.7M, with a 12% margin, vs. $5.0M and 21% a year ago.

• Operating cash flow was $1.8M vs. $10.4M; the large government customer’s annual payment was collected in Q4 FY26 rather than Q1 as in the prior year.

Outlook and guidance

• Q2 FY27 revenue guidance is $21.0M–$21.5M, including AI customer revenue of $14.5M–$14.8M.

• Q2 GAAP net income guidance ranges from a $0.5M loss to $0.2M income; non-GAAP net income is $0.2M–$0.9M, or $0.01–$0.03/share, and adjusted EBITDA is breakeven to $0.5M.

• FY27 revenue guidance is $84.5M–$86.0M, including AI customer revenue of $59.5M–$60.5M; AI customer ARR is targeted to grow ~20% by June 30, 2027.

• FY27 GAAP net loss guidance is $2.0M–$3.0M; non-GAAP net income is $1.0M–$2.0M and adjusted EBITDA is $0.65M–$1.4M.

• FY27 profitability guidance reflects higher sales and marketing investment over the remaining three quarters.