Cloud-based software firm eGain Q4 revenue beats expectations

Overview

• eGain Corp Q4 revenue rises 3% yr/yr, beating analyst expectations, per LSEG data

• GAAP net income surges to $30.9 mln, aided by $29 mln tax benefit

• Adjusted EBITDA margin improves to 19% from 11% in Q4 2024

• Co increases stock repurchase program by $20 mln

Outlook

• eGain expects Q1 2026 revenue between $23.0 mln and $23.5 mln

• Company anticipates FY 2026 revenue between $90.5 mln and $92.0 mln

• eGain forecasts Q1 2026 GAAP net income of $900,000 to $1.6 mln

• Company sees FY 2026 GAAP net income of $3.5 mln to $5.0 mln

Result Drivers

• LARGE DEAL SIGNED - eGain attributes strong Q4 results to one of its largest deals ever signed

• TAX BENEFIT - GAAP net income significantly boosted by a $29 mln tax benefit from the release of a valuation allowance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for eGain Corp is $8.00, about 22% above its September 3 closing price of $6.24

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nGNX17WVJ9