eGain Corporation engages in the development, license, implementation, and support of its customer service infrastructure software solutions in North America, Europe, the ...
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Operator: Good day, and welcome to the eGain Fiscal 2026 Third Quarter Financial Results Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Jim Byers, PondelWilkinson, Investor Relations. Please go ahead. Jim Byers: Thank you, operator, and good afternoon, everyone. Welcome to eGain's Fiscal 2026 Third Quarter 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 remind 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 Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a wide range of risks and uncertainties that could cause actual results to differ in material respects. Information on various factors that could affect eGain's results are detailed in the company's reports filed with the Securities and Exchange Commission. eGain is making these statements as of today, May 14, 2026, and assumes no obligation to publicly update or revise any of the forward-looking information in this conference call. In addition to GAAP results, we will also discuss certain non-GAAP financial measures such as non-GAAP operating income. The tables included with the earnings press release include a reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP financial measures. eGain's earnings press release can be found by clicking the Press Releases link on the Investor Relations page of eGain's website at egain.com. And along with the earnings release, we will post an updated investor presentation to the Investor Relations page of eGain's website. And lastly, a phone replay of this conference call will be available for 1 week. And now with that said, I'd like to turn the call over to eGain's CEO, Ashu Roy. Ashutosh Roy: Thank you, Jim, and good afternoon, everyone. Thanks for joining us. We delivered a strong third quarter with continued momentum in our AI Knowledge business, driven by customer expansion, growing partner engagement and new products. Revenue was in line with expectations and profitability remains strong. Year-to-date, our AI Knowledge ARR has grown 26%, and we have generated $18.7 million in operating cash flow year-to-date, which is a 27% margin. Let me share some of the interesting highlights that we are seeing in the business. In the last 60 days, we've seen a meaningful increase in RFP activity in the U.S., most of it from Fortune 1000 BFSI, which is banking and insurance and health care …
Est. EPS $0.08 · Revenue $22.34M · 2 analysts
Est. EPS $0.10 · Revenue $23.11M · 1 analysts
| Metric | Latest | YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. | QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|---|---|---|
| The total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). |
| Name | Title | Compensation | Gender | Year Born | Status |
|---|---|---|---|---|---|
Rao J. Chandrasekhar | Senior Vice President of Products & Services | USD 472,262 | Male | 1963 | Active |
Eric N. Smit | Chief Financial Officer | USD 402,800 |
| Male |
| 1962 |
| Active |
Ashutosh Roy | Co-Founder, Executive Chairman, Chief Executive Officer & President | USD 310,000 | Male | 1966 | Active |
Anand Subramaniam | Senior Vice President of Marketing | USD 126,037 | Male | — | Active |
Gunjan Sinha | Co-Founder & Independent Director | USD 50,000 | Male | 1967 | Active |
Stanley F. Pierson | Secretary | — | Male | — | Active |
Vishal Nehru | Senior Vice President of Worldwide Sales & Customer Success | — | Male | — | Active |
Stephen Pappas | Head of Innovation | — | Male | — | Active |
Est. EPS $0.12 · Revenue $23.94M · 1 analysts
Est. EPS $0.43 · Revenue $94.12M · 2 analysts
EPS $0.32 · Revenue $91.14M
| $91.1M |
| +3.1% |
| -2.1% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $8.9M | -72.5% | +3.4% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +73.4% | +4.6% | -1.4% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | +8.7% | +74.3% | +0.2% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | +9.7% | -73.3% | +5.6% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $0 | -100.0% | -119.0% |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | 0.0% | -100.0% | -119.4% |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | 3.3% | -27.4% | -44.8% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | 1.73x | +7.9% | +13.4% |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $148.0M | -0.2% | -4.8% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | 0.32 vs 0.40 | -20.7% | 0.09 vs 0.11 | -24.2% |
| Revenue Surprise | $91.1M vs $90.7M | +0.4% | $22.5M vs $22.5M | +0.2% |
| Date | Executive | Title | Security | Side | Shares | Price |
|---|---|---|---|---|---|---|
| Feb 2, 2026 | SMIT ERIC | officer: Chief Financial Officer | Common Stock | A | 5,000 | $2.50 |
| Feb 2, 2026 | SMIT ERIC | officer: Chief Financial Officer | Common Stock | D | 5,000 | $10.25 |
| Feb 2, 2026 | SMIT ERIC | officer: Chief Financial Officer | Employee Stock Option (right to buy) | D | 5,000 | $2.50 |
| Jan 2, 2026 | SMIT ERIC | officer: Chief Financial Officer | Common Stock | A | 5,000 | $2.50 |
| Jan 2, 2026 | SMIT ERIC | officer: Chief Financial Officer | Common Stock | D | 5,000 | $10.24 |
