EX-99.1 egan-20260903xex99d1.htm EX-99.1 Exhibit 99.1 eGain Reports Fiscal 2026 Results: Total Revenue Up 3%, AI Customer Revenue Up 20%, Company Named a Leader in Gartner's First Customer Service Knowledge Management MQ Sunnyvale, CA (September 3, 2026) – eGain (Nasdaq: EGAN), a leading provider of AI-powered knowledge management and customer experience automation solutions, today announced financial results for its fiscal 2026 fourth quarter and full fiscal year ended June 30, 2026.
“Fiscal 2026 was a pivotal year for eGain. AI Knowledge is emerging as a distinct operating layer in the enterprise – the infrastructure that makes every other AI initiative, from agents to copilots to automation, trustworthy and accurate – rather than another point application in another silo. Gartner’s decision to create a dedicated Magic Quadrant for Customer Service Knowledge Management Systems, and to name eGain a Leader in its inaugural edition, validates both the category and the position we’ve spent years building toward,” said Ashu Roy, eGain’s CEO.
“This validation is showing up in the numbers. Total revenue grew 3% for the year, a rate that reflects two trends in our business. First, our investment in AI Knowledge drove 20% year-over-year growth in AI customer revenue. Second, the managed decline in our profitable legacy business.”
“As we enter fiscal 2027, we’re all in on the AI Knowledge opportunity. We believe the market is still early in recognizing how foundational trusted knowledge infrastructure will be to enterprise AI, and we intend to lead it.”
Fiscal 2026 Fourth Quarter Financial Highlights Total revenue was $22.2 million, compared to $23.2 million in Q4 fiscal 2025.
AI customer revenue grew 11% year over year.
GAAP gross margin was 72%, compared to 73% in Q4 fiscal 2025.
Non-GAAP gross margin was 72%, compared to 73% in Q4 fiscal 2025.
GAAP net income was $1.3 million, or $0.05 per share on a basic and diluted basis, compared to GAAP net income of $30.9 million, or $1.13 per share on a basic basis and $1.11 per share on a diluted basis, in Q4 fiscal 2025, which includes the impact of a tax benefit of approximately $29.0 million from the release of a majority of the company’s valuation allowance in Q4 fiscal 2025.
Non-GAAP net income was $2.1 million, or $0.08 per share on a basic and diluted basis, compared to non-GAAP net income of $2.4 million, or $0.09 per share on a basic and diluted basis, in Q4 fiscal 2025.
Adjusted EBITDA was $2.2 million, representing a 10% margin, compared to $4.5 million, or a 19% margin, in Q4 fiscal 2025.
Total cash and cash equivalents were $73.3 million as of June 30, 2026, compared to $62.9 million as of June 30, 2025.
Fiscal 2026 Full Year Financial Highlights Total revenue was $91.1 million, compared to $88.4 million in the same period last year.
AI customer revenue grew 20% year over year.
AI customer annual recurring revenue (ARR) grew 13% year over year and represented 72% of total SaaS ARR as of June 30, 2026.
GAAP gross margin was 73%, compared to 70% in the same period last year.
Non-GAAP gross margin was 74%, compared to 71% in the same period last year.
GAAP net income was $8.9 million, or $0.33 per share on a basic basis and $0.32 per share on a diluted basis, compared to GAAP net income of $32.3 million, or $1.15 per share on a basic and $1.13 per share on a diluted basis, in the same period last year. This includes the impact of a tax benefit of approximately $29.0 million from the release of a majority of the company’s valuation allowance in fiscal 2025.
Non-GAAP net income was $13.0 million, or $0.48 per share on a basic basis and $0.47 per share on a diluted basis, compared to non-GAAP net income of $5.7 million, or $0.20 per share on a basic and diluted basis, in the same period last year.
Adjusted EBITDA was $13.6 million, representing a 15% margin, compared to $8.6 million, or a 10% margin, in the same period last year.
Cash provided by operating activities was $21.2 million, or an operating cash flow margin of 23%.
Total shares repurchased were approximately 1,607,000 at an average price of $7.16 per share, totaling $11.5 million.
Fiscal 2027 First Quarter and Fiscal 2027 Financial Guidance For the first quarter of fiscal 2027 ending September 30, 2026, eGain expects:
Total revenue between $20.9 million and $21.4 million.
Filing figures are from this filing. Earlier figures are from past filings.