eGain Corporation

For fiscal 2026, total revenue increased 3% to $91.1 million. Full-year non-GAAP total gross margin was 74%, up from 71% in fiscal 2025. Adjusted EBITDA was $13.6 million, up from $8.6 million, and cash provided by operating activities reached a record $21.2 million, versus $5.3 million a year ago. AI customer revenue grew 20% year-over-year, AI customer ARR grew 13%, and AI customers represented 72% of total SaaS ARR at year-end. In Q4, total revenue was $22.2 million versus $23.2 million a year ago; non-GAAP total gross margin was 72% versus 73%; non-GAAP net income was $2.1 million, or $0.08 per share; and adjusted EBITDA was $2.2 million, or a 10% margin. For fiscal 2027, the company expects AI customer revenue of $59.5 million to $60.5 million and total revenue of $84.5 million to $86 million. For Q1 FY2027, management guided to AI customer revenue of $13.7 million to $14.0 million, total revenue of $20.9 million to $21.4 million, and adjusted EBITDA of $1.4 million to $1.9 million.

Ashu Roy framed the quarter around Gartner’s inaugural Magic Quadrant for customer service knowledge management systems, saying it validates knowledge management as a distinct enterprise AI infrastructure category and highlights eGain’s positioning. He argued that “wrong knowledge equals wrong AI,” and that enterprises increasingly need governed knowledge, continuous maintenance, and AI knowledge ops to make production AI reliable. His tone was confident and strategic, emphasizing new logos, paid pilots, self-service momentum, and the company’s intention to lead the category.

Eric Smit focused on the mix shift toward AI customers, saying that AI customer revenue and ARR are the primary lenses going forward because they better reflect retention and expansion. He cited 2026 operating performance of $91.1 million revenue, 74% non-GAAP gross margin, $13.6 million adjusted EBITDA, and record operating cash flow of $21.2 million, along with $73.3 million of cash and cash equivalents at June 30, 2026. He also noted buybacks of 1.6 million shares for $11.5 million in fiscal 2026 and said $9.7 million remained under the $60 million authorization.

Analysts focused on the runway for the non-AI business, the impact of broader AI pricing pressure, and what would drive the long-term growth model. Management said the non-AI business is expected to run to essentially zero by the FY2030 timeframe, with some conversion into AI, and Ashu estimated AI-driven pricing pressure could amount to roughly 1 or 2 points over the next 2 to 3 years. On growth drivers, Eric said new logo acquisition should be the primary contributor, helped by the Gartner recognition and go-to-market investment, rather than legacy-customer migration alone.