eGain Announces Second Quarter 2026 Financial Results
AI Knowledge Hub ARR Increases 27% Year Over Year
Sunnyvale, CA (February 3, 2026) - eGain (Nasdaq: EGAN), a leading provider of AI-powered knowledge management solutions, today announced financial results for its fiscal 2026 second quarter ended December 31, 2025.
"I am pleased with our second-quarter performance, highlighted by the 27% year-over-year growth in AI Knowledge Hub ARR," said Ashu Roy, eGain's CEO. "AI Knowledge Hub now represents 64% of our total SaaS ARR, and we continued to build momentum with several customer wins during the quarter. One notable addition was Achmea, a leading European insurance and financial services group, which selected eGain to support 21,000 users across its contact center and enterprise teams."
Fiscal 2026 Second Quarter Financial Highlights
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Total revenue was $23.0 million, up 3% year over year.
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AI Knowledge Hub annual recurring revenue grew 27% year over year to $48.4 million, contributing 64% of total SaaS annual recurring revenue.
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GAAP gross margin was 73%, compared to 70% in Q2 fiscal 2025.
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Non-GAAP gross margin was 74%, up from 71% in Q2 fiscal 2025.
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GAAP net income was $2.3 million, or $0.09 per share on a basic basis and $0.08 per share on a diluted basis, compared to GAAP net income of $671,000, or $0.02 per share on a basic and diluted basis, in Q2 fiscal 2025.
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Non-GAAP net income was $3.0 million, or $0.11 per share on a basic and diluted basis, compared to non-GAAP net income of $1.3 million, or $0.05 per share on a basic basis and $0.04 per share on a diluted basis, in Q2 fiscal 2025.
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Adjusted EBITDA was $3.3 million, a 14% margin, compared to $1.6 million, a 7% margin, in Q2 fiscal 2025.
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Cash provided by operating activities was $10.1 million, or an operating cash flow margin of 44%.
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Total cash and cash equivalents were $83.1 million, compared to $70.5 million in Q2 fiscal 2025.
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Fiscal 2026 First Six Months Financial Highlights
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Total revenue was $46.5 million, up 5% year over year.
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GAAP gross margin was 74%, compared to 70% in the same period last year.
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Non-GAAP gross margin was 75%, up from 71% in the same period last year.
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GAAP net income was $5.2 million, or $0.19 per share on a basic and diluted basis, compared to GAAP net income of $1.3 million, or $0.05 per share on a basic and diluted basis, in the same period last year.
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Non-GAAP net income was $7.7 million, or $0.28 per share on a basic and diluted basis, compared to non-GAAP net income of $2.6 million, or $0.09 per share on a basic and diluted basis, in the same period last year.
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Adjusted EBITDA was $8.3 million, an 18% margin, compared to $3.0 million, a 7% margin, in the same period last year.
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Cash provided by operating activities was $20.5 million, or an operating cash flow margin of 44%.
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Fiscal 2026 Third Quarter Financial Guidance
For the third quarter of fiscal 2026 ending March 31, 2026, eGain expects:
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Total revenue between $22.2 million to $22.7 million.
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GAAP net income of $1.0 million to $1.5 million, or $0.04 to $0.05 per share.
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Includes stock-based compensation expense of approximately $800,000.
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Non-GAAP net income of between $1.8 million to $2.3 million, or $0.06 to $0.08 per share.
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Adjusted EBITDA of $2.6 million to $3.1 million, or margin of 12% to 14%.
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