eGain's AI Transformation Gains Momentum with Strong Financials and Industry Recognition
eGain Corporation (NASDAQ:EGAN) reported fiscal 2026 results showing a transition from its shrinking legacy business to an expanding AI-driven operations segment. Total revenue increased by 3% year-over-year, but the key growth came from AI customer revenue, which rose 20%. In July, Gartner recognized eGain as a leader in its first Magic Quadrant for customer service knowledge management systems. The company is shifting focus entirely to AI and has seen new logo wins increase by 27% year-over-year. Pipeline opportunities with high annual recurring revenue have doubled, and clients are increasingly opting for paid pilots over free trials. Financially, adjusted EBITDA rose to $13.6 million (a 15% margin), while operating cash flow reached a record $21.2 million. Despite AI growth, the legacy business is declining rapidly with non-AI ARR expected to drop by 60% in fiscal 2027 and nearly disappear by 2030. Retention rates for both AI and overall customers have declined slightly due to a large expansion deal last year that skewed prior results.
Tickers: $EGAN
Topics: AI EBITDA improvement Gartner recognition revenue growth