Q4 2026 eGain Corp Earnings Call Transcript
Key Points
- eGain Corp (EGAN) was named a Leader in Gartner's first-ever Magic Quadrant for customer service knowledge management systems, positioned highest for ability to execute and furthest for completeness of vision.
- AI customer revenue grew 20% year-over-year in fiscal 2026, and AI customer ARR grew 13%, representing 72% of total SaaS ARR at year-end.
- New logo wins increased 27% year-over-year, with several new paid pilots in Global 2000 accounts, indicating strong market traction.
- The company achieved record operating cash flow of $21.2 million in fiscal 2026, up from $5.3 million in the prior year, and adjusted EBITDA margin improved to 15%.
- eGain Corp (EGAN) introduced a long-term financial model targeting AI customer ARR of $100-$120 million by fiscal 2030, representing a 17%-22% CAGR, and expects AI customer ARR to grow approximately 20% in fiscal 2027.
- Total revenue declined 4% year-over-year in Q4 fiscal 2026, and full-year total revenue growth was only 3%, reflecting weakness in legacy non-AI customer segments.
- Total SaaS ARR declined 1% year-over-year, driven by a decline among legacy non-AI customers, and the company expects legacy ARR to decline by 60% in fiscal 2027.
- Dollar-based net retention for AI customers fell to 104% from 120% a year ago, and overall net retention dropped to 93% from 105%, indicating reduced expansion within the existing customer base.
- The company's fiscal 2027 outlook projects a GAAP net loss of $2-$3 million and minimal adjusted EBITDA margin of 1%-2%, reflecting significant investments and continued legacy revenue decline.
- Total RPO declined 5% year-over-year and current RPO declined 2%, signaling potential near-term revenue headwinds.
Good day, and welcome to the eGain Fiscal 2026 fourth quarter and full year financial results call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Jim Byers, Investor Relations. Please go ahead.
Thank you, operator, and good afternoon, everyone. Welcome to eGain's Fiscal 2026 fourth quarter and full year financial results conference call. On the call today are eGain's Chief Executive Officer, Ashu Roy; and Chief Financial Officer, Eric Smit.
Before we begin, I would like to read everyone that during this conference call, management will make certain forward-looking statements which convey management's expectations, beliefs, plans and objectives regarding future financial and operational performance.
Forward-looking statements are generally preceded by words such as believe, plan, intend, expect, anticipate or similar expressions. Forward-looking statements are protected by Safe Harbor provisions contained in the Private
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