eGain's Fourth Quarter Financial Analysis: 2025 Highlights
eGain Reports Strong Financial Results for Fiscal 2025
eGain Corporation (NASDAQ: EGAN), a leading AI knowledge management platform for customer service, has delivered impressive financial performance for their fourth quarter and the complete fiscal year. With a strategic focus on enhancing customer experiences, eGain's growth trajectory has positioned it favorably within the technology landscape.
Fourth Quarter Financial Highlights
In the fourth quarter, eGain reported total revenue of $23.2 million, reflecting an 11% sequential increase and a 3% rise compared to the previous year. The company achieved a staggering GAAP net income of $30.9 million, which translates to $1.13 per share on a basic basis. This notable profit, a substantial rise from $1.5 million in the same quarter last year, was boosted by a significant tax benefit.
Key Metrics to Note
The adjusted EBITDA for this quarter stood at $4.5 million, representing a robust 19% margin compared to 11% from the previous fiscal year. Moreover, eGain effectively utilized its capital, repurchasing approximately 630,000 shares at an average price of $5.97, totaling $3.8 million.
Full Year Financial Overview
Across the entire fiscal year, eGain recorded total revenues of $88.4 million. While this reflects a 5% decrease year-over-year, it remains a strong showing amidst a competitive landscape. The net income for the fiscal year was $32.3 million, equivalent to $1.15 per share, also bolstered by the positive impact of the aforementioned tax benefits.
Operational Insights
Throughout FY 2025, eGain maintained an operating cash flow margin of 6%, providing a cash reserve of $62.9 million at the end of the fiscal year. The company strategically repurchased a total of approximately 2.6 million shares at an average price of $6.03 per share, totaling about $15.8 million in repurchases for the year.
Guidance for Fiscal 2026
Looking ahead to the first quarter of fiscal 2026, eGain anticipates total revenue to range between $23.0 million to $23.5 million, complemented by a projected GAAP net income between $900,000 and $1.6 million. As for the fiscal year ending June 30, 2026, the company expects total revenue to land between $90.5 million and $92.0 million.
Strategic Growth Initiatives
eGain emphasizes its commitment to growth by enhancing its product offerings centered around AI and customer engagement. The desired outcome is to leverage existing cash flows and resources for further expansion and innovation.
Stock Repurchase Program Expansion
In a significant move to bolster shareholder value, eGain's Board of Directors has approved a $20 million increase in its stock repurchase program. This augmentation raises the total authorized amount to $60 million, enabling eGain to continue buying back its shares at favorable prices, reflecting management's confidence in the company’s long-term growth and valuation.
About eGain Corporation
Founded to enhance customer service through advanced AI capabilities, eGain is on a path of innovation in the technology sector. Their AI Knowledge Hub is pivotal in furnishing businesses with reliable and efficient solutions to operational challenges.
Frequently Asked Questions
What financial results did eGain report for Q4 2025?
eGain reported $23.2 million in total revenue, with a GAAP net income of $30.9 million, marking significant growth.
How does eGain's fiscal year 2025 revenue compare to previous years?
The full-year revenue for 2025 was $88.4 million, which reflects a 5% decrease compared to the prior year.
What is the forecast for fiscal 2026?
eGain expects total revenue to be between $90.5 million and $92.0 million for fiscal 2026.
What recent changes are there in eGain's stock repurchase program?
The Board approved a $20 million increase in its stock repurchase program, raising the total to $60 million.
What is eGain's focus for future growth?
eGain is focused on enhancing its AI solutions for customer engagement and aims to drive innovation and shareholder value.
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