eGain Reports Fiscal Year 2026 Earnings with Shift Toward AI Offerings
eGain Corporation (EGAN) reported fiscal year 2026 results showing a modest 3% increase in total revenue to $91.1 million, driven primarily by growth in its AI-powered offerings. AI customer revenue grew 20%, and AI Customer ARR increased 13%, representing 72% of the company's SaaS ARR as of June 30, 2026. Despite these gains, quarterly revenue declined slightly due to reduced income from legacy conversation and analytics customers. The company reported strong financial metrics including an adjusted EBITDA margin of 15% ($13.6 million) for the year and a record operating cash flow of $21.2 million with a 23% margin. eGain also repurchased 1.6 million shares during fiscal 2026 at an average price of $7.16 per share, signaling confidence in its long-term strategy. Looking ahead, management outlined financial targets through fiscal 2030, including AI ARR growth to between $100 million and $120 million by then. However, the company acknowledged challenges such as a decline in SaaS ARR from legacy customers and reduced dollar-based net retention for AI clients compared to prior years.
Tickers: $EGAN
Topics: AI adoption cash flow EBITDA revenue SaaS margin share repurchases