NASDAQ$EGAN

eGain Corp · Q2 2025 earnings

Q2 2025 earnings · · After market close · Investor relations

Briefing

eGain reported a decrease in total revenue and net income for the three and six months ended December 31, 2024, compared to the same periods in the previous fiscal year.

eGain Corporation experienced a decline in financial performance for the three and six months ended December 31, 2024. Total revenue decreased by $1.4 million (6%) for the three-month period and $3.8 million (8%) for the six-month period. Net income also saw a significant drop, falling from $2.185 million to $671,000 for the three months and from $4.781 million to $1.323 million for the six months. This downturn was primarily attributed to a reduction in gross margin and an increase in research and development costs.

  • Total revenue for the three months ended December 31, 2024, decreased by $1.4 million (6%) to $22.389 million.
  • Net income for the three months ended December 31, 2024, was $671,000, a decrease from $2.185 million in the prior year.
  • Operating income for the three months ended December 31, 2024, was $650,000, down from $2.425 million in the prior year.
  • SaaS revenue decreased by $1.1 million (5%) for the three months ended December 31, 2024, to $20.847 million.

Headline financials

Total Revenue

$22.4M

Previous: $23.8M-6.0%
EPS (adj)

$0.02

Previous: $0.07-71.4%
Sales and marketing expense

$5.25M

Previous: $5.35M-1.8%
General and administrative expense

$2.1M

Previous: $2.39M-12.2%
Stock-based compensation expense

$622K

Previous: $1.2M-47.9%
Research and development expense

$7.71M

Previous: $6.66M+15.7%
Capital Expenditures

-$248K

Previous: -$135K-83.7%
Net Income

$671K

Previous: $2.19M-69.3%
Operating Income

$650K

Previous: $2.43M-73.2%
Gross Profit

$15.7M

Previous: $16.8M-6.6%

Revenue & EPS history

eGain · Revenue · Quarterly

$22.4M

Q2 2025-6%vs Q2 2024
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

eGain · $22.5M total across 2 segments · Q3 2026

  • SaaS
    $20.9M
  • Professional services
    $1.58M

Forward guidance

eGain's forward-looking statements indicate a cautious outlook, acknowledging various risks and uncertainties that could impact future financial performance and operations. The company aims to manage business plans, strategies, and targets while navigating market conditions and competitive challenges.

Tailwinds

  • Belief that excluding certain non-cash and non-core operational charges from non-GAAP operating income is useful.
  • Expected benefits of their solutions to clients and partners.
  • Their value proposition in the market.
  • Ability to improve current solutions and innovate to respond to rapid technological change.
  • Ability to execute sales and marketing strategy and customer acceptance of existing and future solutions.

Headwinds

  • Business is influenced by factors beyond their control, with no comparative advantage in forecasting.
  • SaaS business model is subject to certain risks, including unpredictable subscription renewal rates.
  • Lengthy sales cycles and difficulty in predicting timing of sales or delays may impair operating results.
  • Dependence on a relatively small number of customers for a substantial portion of revenue, making them vulnerable to customer loss.
  • The market for customer engagement software, including generative AI product offerings, is competitive, and their business will be adversely affected if they are unable to successfully compete.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2025

Historical avgQ2 2025

+0.4%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+4.2%

Avg return

30 days after

48%

31 / 65 earnings

Positive

+42.9%

Q2 2019

Best reaction

-33.0%

Q4 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+3.6%+4.5%+10.7%
Q2 2026+1.6%+4.6%+0.2%
Q1 2026-24.9%-27.5%-31.5%
Q4 2025+4.5%+27.7%+60.8%
Q3 2025+4.0%+3.0%+18.2%
Q2 2025-18.2%-16.6%-24.1%
Q1 2025-7.9%-10.1%-3.1%
Q4 2024-14.5%-21.7%-23.3%
Q3 2024-9.4%-2.3%-7.8%
Q2 2024-24.3%-25.7%-19.8%
Q1 2024+9.2%+10.2%+25.8%
Q4 2023-4.4%+4.6%+0.2%
Q3 2023-4.8%-6.5%+5.3%
Q2 2023-10.1%-9.2%-14.4%
Q1 2023+16.4%+9.2%+9.5%
Q4 2022-14.3%-13.0%-16.4%
Q3 2022-4.9%-5.2%-13.9%
Q2 2022+25.4%+20.3%+13.7%
Q1 2022+8.8%+6.3%-3.5%
Q4 2021+4.1%+2.5%-9.2%
Q3 2021+15.5%+21.3%+21.7%
Q2 2021+8.4%+3.7%-13.0%
Q1 2021-25.7%-30.2%-31.0%
Q4 2020-12.1%-17.2%-1.1%
Q3 2020+21.4%+17.5%+19.0%
Q2 2020+15.2%+34.8%+6.2%
Q1 2020-1.5%-6.4%-3.7%
Q4 2019+9.7%+15.0%+3.6%
Q3 2019-11.4%-17.4%-17.1%
Q2 2019+42.9%+49.3%+50.3%
Q1 2019+2.8%-6.5%-15.9%
Q4 2018-33.0%-38.3%-40.2%
Q3 2018+18.5%+18.0%+51.7%
Q2 2018+9.8%+31.4%+52.9%
Q1 2018+12.7%+16.9%+57.6%
Q4 2017+21.6%+13.5%+89.2%
Q3 2017+0.0%-5.9%-8.8%
Q2 2017-2.4%-2.4%-11.9%
Q1 2017-3.6%-12.5%-21.4%
Q4 2016-3.9%-10.9%+1.3%
Q3 2016-10.3%
Q2 2016-1.0%
Q1 2016-3.8%
Q4 2015-8.6%
Q3 2015+0.6%
Q2 2015-23.6%
Q1 2015+20.7%
Q4 2014-2.3%
Q3 2014-9.9%
Q2 2014-10.6%
Q1 2014-9.3%
Q4 2013+23.1%
Q3 2013+1.1%
Q2 2013-1.7%
Q1 2013+1.5%
Q4 2010-1.3%
Q4 2012-2.9%
Q3 2012-3.1%
Q3 2011-3.1%
Q2 2011+0.8%
Q2 2012+0.8%
Q1 2012+8.3%
Q4 2011+8.3%
Q1 2011+8.3%
Q3 2010+16.9%

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