EGAN earnings analysis
What we found in EGAN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
eGain reported solid Q3 fiscal 2026 results, with revenue of $22.5 million and diluted EPS of $0.11, both above expectations. This marks a modest increase from both the previous quarter and the prior year. However, professional services revenue saw a notable decline, balancing the growth in SaaS revenue. The company's future growth is underpinned by strong performance in AI applications and a bullish outlook for SaaS growth, despite potential risks from customer retention and market volatility.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth
- Q3 revenue increased to $22.5 million, a 7.1% rise from $21 million YoY.
- Strong EPS Growth
- Diluted EPS soared to $0.11, exceeding the expected $0.06.
- SaaS Revenue Up
- SaaS revenue rose by $1.4 million to $20.9 million, accounting for 93% of total revenue.
- Operating Cash Flow Improvement
- Net cash provided by operating activities reached $18.7 million, up $9.1 million from the previous year.
- Positive market signals for AI
- Management noted a 26% increase in AI Knowledge Hub annual recurring revenue.
- Cash Position Strengthened
- Cash, cash equivalents, and restricted cash increased to $80.5 million from $62.9 million YoY.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Professional Services Decline
- Professional services revenue decreased by $597,000 YoY to $4.4 million, showing a 12% drop.
- High Dependence on Key Customers
- A significant portion of revenue is from a small number of clients, increasing volatility risk.
- Competitive Pressure in AI
- Intense competition in AI could limit growth opportunities and margin expectations.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.11
- Gross margin
- 73.1%
- Operating margin
- 9.0%
- Segment
- SaaS: $20.9M
- Segment
- Professional Services: $1.6M
What they said about what is next.
Management forecasts full-year revenue between $90.5-$91.0 million reflecting overall growth, despite pressures.
The filing reads better than the one before it.
What came before.
- 10-Q · May 14, 2025
- eGain reported quarter revenue of $21,009,000, down $1,341,000 (−6.0%) versus the prior-year quarter, with gross margin compressing to 68.0% and operating income collapsing to $27,000. Net income declined to $66,000 and…
- 10-Q · February 13, 2025
- eGain reported revenue of $22,389,000 for the quarter ended December 31, 2024, down $1,426,000 (−6.0%) versus the prior year quarter. Gross margin was roughly 70.2% while operating income declined to $650,000 and…
- 10-Q · May 9, 2024
- eGain reported three months ended March 31, 2024 revenue of $22,350,000, down $663,000 (2.9%) versus $23,013,000 a year earlier, while returning to profitability with net income of $1,493,000 and diluted EPS of $0.05…
- 10-Q · February 8, 2024
- eGain reported Q2 revenue of $23,815,000 and diluted EPS of $0.07 for the three months ended December 31, 2023. Revenue declined versus the prior-year quarter ($25,600,000) but the company swung to operating income of…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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