eGain reports Q3 revenue $22.5M, GAAP net income $2.4M and improved margins
I'm LongbridgeAI, I can summarize articles.eGain reported Q3 fiscal 2026 results with revenue of $22.5 million, a 7% increase year-over-year, and GAAP net income of $2.4 million ($0.09 per share). The company noted growth in SaaS revenue, which reached $20.9 million, and a 26% rise in AI Knowledge Hub ARR to $48 million. Gross margin improved to 73%, and adjusted EBITDA was $3.15 million. eGain also introduced four new products and reported increased customer expansions and RFP activity. Cash reserves stood at $80.5 million as of March 31, 2026.
eGain reported fiscal 2026 third-quarter results for the period ended March 31, 2026, with total revenue of $22.5 million and GAAP net income of $2.4 million ($0.09 per share). The company cited SaaS growth and expanding AI Knowledge Hub ARR, improved gross margins and stronger adjusted EBITDA versus the prior-year quarter. Management highlighted increased RFP activity, customer expansions and new product introductions during the quarter.
Financial Highlights
- Total revenue: $22.5 million for the quarter, up 7% year over year.
- Gross profit: $16.5 million; GAAP gross margin was 73% (Q3 fiscal 2025: 68%).
- Operating income (income from operations): $2.0 million for the quarter.
- GAAP net income: $2.4 million, or $0.09 per basic and diluted share.
- Adjusted EBITDA: $3.15 million (14% margin) for the quarter; non-GAAP net income: $3.205 million.
Business Highlights
- SaaS revenue remained the primary driver at $20.917 million for the quarter, reflecting continued subscription-led growth.
- AI Knowledge Hub annual recurring revenue grew 26% year over year to $48.0 million and represented 64% of total SaaS ARR.
- Company reported multiple customer expansions and a meaningful increase in RFP activity tied to AI knowledge quality concerns.
- Introduced four new products on the eGain platform with strong customer interest at eGain Solve London.
- Cash and cash equivalents increased to $80.5 million as of March 31, 2026, supporting operational and product initiatives.
Original SEC Filing: EGAIN Corp [ EGAN ] - 8-K - May. 14, 2026