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Sep 30
eGain Q1 2026 Earnings Report
eGain reported an increase in revenue and net income in Q1 FY2026, with results at the high end of guidance and stronger profitability compared to the previous year.
Key Takeaways
eGain delivered solid Q1 results with revenue reaching $23.5M and a notable improvement in net income and EBITDA margin, supported by growth in its AI Knowledge Hub business.
Total revenue was $23.5 million, an 8% increase year-over-year
Net income rose to $2.8 million, up from $652K in Q1 FY2025
Adjusted EBITDA margin improved to 21% from 6% last year
AI Knowledge Hub ARR grew 23% to $45.9 million, now 60% of SaaS ARR
eGain
eGain
eGain Revenue by Segment
Revenue by Segment
SaaS Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
eGain expects Q2 FY2026 revenue between $22.3M to $22.8M with modest profitability, and reaffirmed full-year guidance with expectations for revenue up to $92M and stronger non-GAAP income.
Positive Outlook
- Revenue guidance for Q2 set between $22.3M to $22.8M
- GAAP net income projected between $1.2M to $1.7M
- Non-GAAP net income expected to reach up to $2.4M
- Adjusted EBITDA margin for Q2 guided at 12% to 14%
- Full-year revenue guidance raised to a high of $92M
Challenges Ahead
- Stock-based compensation for FY expected at $3.4M
- Warrant expense to impact full-year results by $1.4M
- Free cash flow not guided despite strong Q1 performance
- Q2 revenue outlook below Q1 actuals
- Market conditions and AI adoption risks still flagged
Revenue & Expenses
Visualization of income flow from segment revenue to net income