eGain (EGAN) Q4 2026 earnings summary

Executive summary

• Recognized as a leader in Gartner's inaugural Magic Quadrant for Customer Service Knowledge Management Systems, validating market leadership and strategic focus on AI Knowledge.

• Fiscal 2026 total revenue grew 3% year-over-year to $91.1 million, driven by a 20% increase in AI customer revenue, while legacy business continued a managed decline.

• AI customer ARR grew 13% year-over-year to $54.3 million, now representing 72% of total SaaS ARR at year-end.

• New logo wins increased 27% year-over-year, with significant traction in compliance-heavy verticals such as banking, insurance, and healthcare.

• Product innovation included the launch of eGain AI Agent IVA, Agentic Studio, Evaluator, and a new healthcare vertical solution.

Financial highlights

• Fiscal 2026 total revenue was $91.1 million, up from $88.4 million in the prior year; AI customer revenue grew 20% year-over-year for the full year and 11% in Q4.

• Adjusted EBITDA increased to $13.6 million (15% margin), up from $8.6 million (10% margin) in fiscal 2025.

• Non-GAAP net income was $13.0 million ($0.47–$0.48 per share), up from $5.7 million in 2025.

• GAAP net income was $8.9 million ($0.33 per share basic), down from $32.3 million in 2025, which included a $29 million tax benefit.

• Cash flow from operations reached a record $21.2 million (23% margin), with cash and equivalents at $73.3 million at year-end.

Outlook and guidance

• Fiscal 2027 guidance: AI customer revenue of $59.5–$60.5 million (8–10% growth), total revenue of $84.5–$86 million.

• AI customer ARR expected to grow ~20% in fiscal 2027; legacy customer ARR expected to decline by 60%.

• Fiscal 2027 non-GAAP net income expected at $1–$2 million, adjusted EBITDA of $650,000–$1.4 million (1–2% margin).

• Q1 fiscal 2027 revenue guidance: $20.9–$21.4 million; AI customer revenue: $13.7–$14.0 million.

• Long-term model targets AI customer ARR of $100–$120 million and total revenue of $110–$120 million by fiscal 2030, with AI revenue representing ~95% of total.