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what it is
EGain sells customer-service software that helps companies answer questions through knowledge bases, self-service, email, and AI tools.
how it gets paid
Last year Egain made $88M in revenue. AI knowledge management was the main engine at $28M, or 32% of sales.
why growth slowed
Revenue fell 4.7% last year. 102% revenue growth mattered most because it is the cleanest rebuttal to the full-year 4.7% decline.
what just happened
Latest quarter revenue hit $46M, up 102% vs. prior year, while EPS climbed to $0.19 from a much smaller base.
At a glance
B balance sheet — gets the job done, barely
35/100 earnings predictability — expect surprises
8.9x trailing p/e — the market's not buying it — or you found a deal
38.8% return on capital — every dollar works hard here
$1.13 fy2025 eps est
xvary composite: 60/100 — average
What they do
eGain sells customer-service software that helps companies answer questions through knowledge bases, self-service, email, and AI tools.
eGain wins because it sits inside customer-service workflows that are annoying to rip out. Its software plugs into call centers, databases, and commerce systems, and that glue helped it earn 38.8% on capital in fiscal 2025. Switching costs (changing core software) → expensive retraining and integration work → your customers feel the pain first.
How they make money
$88M
annual revenue · their business grew -4.7% last year
AI knowledge management
$28M
+10.5%
Self-service applications
$18M
0.0%
Email and interaction management
$15M
0.0%
Platform integrations
$11M
0.0%
Professional services and support
$16M
4.7%
The products that matter
AI customer service automation
eGain AI CX Automation Platform
tied to a business doing $88M in annual revenue
This is the growth pitch: use generative AI on top of service workflows and knowledge content. The problem is simple to state. Company-wide revenue still fell 4.7%, so the product story has not yet become a company story.
turnaround hinge
core knowledge management system
Knowledge Hub
supports the ~$62M SaaS base
Knowledge is the raw material the AI layer needs. If this product keeps customers in the subscription base and helps SaaS grow 10.5%, it matters. If not, the AI narrative is just packaging.
data layer
subscription revenue engine
SaaS subscriptions
~70% of revenue · +10.5% growth
This is the cleanest part of the business. At roughly $62M, it carries most of the story. You need this bucket to keep growing fast enough to cover the shrinking ~$26M legacy piece.
where the turn starts
Key numbers
38.8%
return on capital
Return on capital → profit generated from the money in the business → so what: eGain turns a small asset base into real earnings.
8.9x
trailing p/e
P/E → price compared with yearly profit → so what: you are paying under 9 times earnings for a software company with positive EPS.
$2M
long-term debt
Long-term debt → money owed over many years → so what: at just 1% of capital, leverage is not what breaks this story.
74.2%
gross margin
Gross margin → sales left after direct delivery costs → so what: the software itself is lucrative even if operating costs still eat too much of it.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 2 — safer than 80% of stocks
- price stability 25 / 100
- long-term debt $2M (1% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for EGAN right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Latest quarter revenue hit $46M, up 102% vs. prior year, while EPS climbed to $0.19 from a much smaller base.
The absurd part is the contrast. Annual revenue still fell 4.7% to $88M, but the latest quarter doubled. Gross margin stayed high at 74.2%, which tells you the product economics were never the issue.
$46M
revenue
$0.19
eps
74.2%
gross margin
the number that mattered
102% revenue growth mattered most because it is the cleanest rebuttal to the full-year 4.7% decline.
source: company earnings report, 2026
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What could go wrong
The #1 risk is legacy revenue erosion overwhelming SaaS growth. This is not a generic software risk. It is specific to a company growing one bucket at 10.5% while total revenue still fell 4.7%.
med
Legacy book keeps shrinking faster than SaaS grows
Annual revenue was $88M, down 4.7%, even with SaaS subscriptions up 10.5%. That means the non-SaaS piece is shrinking hard enough to overpower the healthier segment.
If that continues, the low 8.9x earnings multiple is not a bargain. It is the correct penalty for a shrinking business.
med
AI platform story stays narrative-heavy
The company is pitching an AI roadmap into 2027 and 2028, but the current proof point is still modest: Q2 revenue rose 3% to $23M. You need adoption to show up in reported revenue, not just presentations.
If the AI platform does not create sustained company-wide growth, the market stops paying for the future and goes back to pricing the decline.
med
Small-cap volatility does the rest
At a roughly $240M market cap, with a 52-week range of $4–$16 and a price stability score of 25/100, this stock does not need much news to move a lot.
Even decent fundamentals can get drowned out by liquidity and sentiment. The drawdowns can be real before the thesis is proven wrong.
A business doing roughly $88M in revenue does not get much room for storytelling. If SaaS growth cannot lift the whole company, the equity case stays fragile.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
total revenue staying above last year
Q2 revenue rose 3% to $23M. That matters because the annual base still shows a 4.7% decline. One good quarter is a clue. Two or three starts to look like a turn.
trend
saaS growth versus the shrinking legacy book
The cleanest contrast in this story is 10.5% SaaS growth against company-wide contraction. You want that gap closing in the right direction.
calendar
38th annual roth conference
Management is presenting in March 2026. Listen for specifics on AI adoption, customer wins, and whether pipeline talk finally turns into reported revenue.
risk
price swings that have nothing to do with fundamentals
A $240M stock with a $4–$16 52-week range can move on very little. If you own it, volatility is part of the business model whether you like it or not.
Analyst rankings
earnings predictability
35 / 100
Low predictability. In human-speak, the quarter-to-quarter results can surprise you in either direction.
risk rank
2
This score says the balance-sheet risk is relatively low. It does not mean the stock price is calm.
price stability
25 / 100
The shares move around a lot. You are getting a safer balance sheet than the chart suggests, but not a stable ride.
source: institutional data
Institutional activity
institutional ownership data for EGAN is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$11
current price
n/a
target midpoint · n/a from current
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