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# EGAIN Guides Fiscal 2027 Revenue Below Fiscal 2026 as Legacy Business Shrinks
- URL: https://redfiled.com/egain-guides-fiscal-2027-revenue-below-fiscal-2026-as-legacy-business-shrinks/
- Published: 2026-09-04T14:52:45.000Z
- Updated: 2026-09-04T15:34:44.000Z
- Description: eGain grew fiscal 2026 revenue 3% to $91.1 million and lifted AI customer revenue 20%, but guided fiscal 2027 sales down to $84.5-$86.0 million.
- Author: William Hayes
- Tags: EGAN, Earnings

**eGain (EGAN)** reported fiscal 2026 results on **September 3, 2026**, posting full-year total revenue of **$91.1 million**, up roughly **3%** from **$88.4 million** a year earlier, with **AI customer revenue up 20%** year over year. The Sunnyvale-based knowledge management vendor simultaneously guided fiscal 2027 revenue to **$84.5 million to $86.0 million**, below the year just ended, as its legacy business continues to shrink.

The fourth quarter showed the crosscurrents clearly. Total revenue was **$22.2 million**, down from **$23.2 million** in the year-ago quarter, while AI customer revenue rose **11%**. GAAP gross margin slipped to **72%** from **73%**, and adjusted EBITDA fell to **$2.2 million**, a **10% margin**, versus **$4.5 million** and a **19% margin** a year earlier.

Fourth-quarter GAAP net income was **$1.3 million**, or **$0.05 per share**, against **$30.9 million**, or **$1.13 basic**, in Q4 fiscal 2025 — a comparison distorted by a roughly **$29.0 million tax benefit** from the release of most of the company's valuation allowance in that prior quarter. Non-GAAP net income was **$2.1 million**, or **$0.08 per share**, versus **$2.4 million** and **$0.09** last year.

For the full year, non-GAAP net income more than doubled to **$13.0 million**, or **$0.47 diluted**, from **$5.7 million** and **$0.20**. Adjusted EBITDA reached **$13.6 million**, a **15% margin**, up from **$8.6 million** and **10%**. Operating cash flow was **$21.2 million**, a **23% margin**, and cash stood at **$73.3 million** on June 30, 2026, versus **$62.9 million** a year earlier, despite **$11.5 million** spent buying back about **1,607,000 shares** at an average **$7.16**.

AI customer annual recurring revenue grew **13%** and made up **72% of total SaaS ARR** at year-end. CEO **Ashu Roy** said Gartner's decision to create a dedicated Magic Quadrant for Customer Service Knowledge Management Systems, and to name eGain a *Leader* in its inaugural edition published **July 16, 2026**, *validates both the category and the position we've spent years building toward*.

Guidance points to a profitability reset. For fiscal 2027, eGain expects AI customer revenue of **$59.5 million to $60.5 million**, a **GAAP net loss of $2.0 million to $3.0 million**, non-GAAP net income of just **$1.0 million to $2.0 million**, and adjusted EBITDA of **$650,000 to $1.4 million** — a margin of only **1% to 2%**, down sharply from 15% in fiscal 2026.

For the first quarter ending September 30, 2026, the company guided to revenue of **$20.9 million to $21.4 million**, GAAP net income of **$500,000 to $1.1 million**, and adjusted EBITDA of **$1.4 million to $1.9 million**. Weighted average shares are seen at about **26.6 million** for the quarter and **26.8 million** for the year.

Roy framed the coming year as a deliberate trade-off, saying eGain is *all in on the AI Knowledge opportunity* and describing the shrinking older revenue stream as a *managed decline in our profitable legacy business*.

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This is a factual summary of a public filing or press release, not investment advice. Verify all figures against the source before acting on them.