Fourth Quarter Financial Performance: eGain reported an 11% sequential and 3% year-over-year increase in total revenue to $23.2 million, with a record non-GAAP SaaS gross margin of 80%. The company anticipates a return to full-year revenue growth in fiscal 2026, driven by a 20% increase in annual recurring revenue (ARR) from its core AI knowledge business.
Strategic Partnership with JPMorgan Chase: eGain formed a significant partnership with JPMorgan Chase, enhancing its AI knowledge capabilities and expanding its market presence. This collaboration includes product development and aims to leverage JPMorgan's scale to accelerate innovation and improve credibility with large enterprise clients.
Operational Improvements and Cost Management: The company achieved a total gross margin of 73% and a non-GAAP SaaS gross margin of 80%, while reducing non-GAAP operating costs by 2% year-over-year. Increased AI-driven automation and a new cloud architecture are expected to support further gross margin expansion and continued investment in product development.
Future Guidance: eGain projects total revenue between $90.5 million and $92 million for fiscal 2026, with a forecasted gross margin expansion to 74%-75%. The company plans to increase R&D investment by 6% year-over-year while targeting a 20% to 40% rise in adjusted EBITDA.
EGAN
$10.08+Infinity%1D
Analyst Views on EGAN
Wall Street analysts forecast EGAN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EGAN is 17.50 USD with a low forecast of 15.00 USD and a high forecast of 20.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
Wall Street analysts forecast EGAN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EGAN is 17.50 USD with a low forecast of 15.00 USD and a high forecast of 20.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 10.340
Low
15.00
Averages
17.50
High
20.00
Current: 10.340
Low
15.00
Averages
17.50
High
20.00
Roth Capital
NULL -> Buy
maintain
$10 -> $20
2025-11-13
Reason
Roth Capital
Price Target
$10 -> $20
2025-11-13
maintain
NULL -> Buy
Reason
Roth Capital raised the firm's price target on eGain to $20 from $10 and keeps a Buy rating on the shares. The company's Q1 results were good, with revenues moderately above the firm's forecast, which allowed falling costs to translate into record adjusted EBITDA, the analyst tells investors in a research note. With AI-centric offerings appearing to offer a good intermediate-term growth acceleration path and its earnings step-up confirmed, the firm is more positive on the stock, Roth added.
Roth MKM
Richard Baldry
Strong Buy
Reiterates
$12 → $10
2025-02-14
Reason
Roth MKM
Richard Baldry
Price Target
$12 → $10
2025-02-14
Reiterates
Strong Buy
Reason
About EGAN
eGain Corporation provides a knowledge platform for customer engagement. The Company offers a unified solution organized into three hubs eGain Knowledge Hub, eGain Conversation Hub, and eGain Analytics Hub, to automate, augment and orchestrate digital-first customer engagement. The eGain Knowledge Hub helps businesses to centralize knowledge, policies, procedures, situational expertise, and best practices, while delivering guided, personalized, and trusted answers to customers, agents, and field staff. Its eGain Conversation Hub offers capabilities for digital-first, omnichannel interaction management within a modern, purpose-built desktop. Applications, powered by its Knowledge and AI capabilities (from its Knowledge Hub), guide agents to efficiently interact with customers using chatbots, messaging applications, SMS, chat, email, phone, video, fax, and letter. Its eGain Analytics Hub enables clients to measure, manage and optimize their omnichannel service operations and knowledge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
