One-glance verdict
Undervalued
$24.05 our estimate vs market $5.81
Wall Street consensus: $6.33 (-73.7% lower than our fair-value estimate)
76% below our estimate, below the bear case
Fundamentals snapshot
eGain Corporation
EGAN · NCM · Technology · Software - Application
Current price
$5.81
52-week range
$5.02 - $15.95
Market cap
$152.06M
Balance sheet
Healthy
3.54x Stretched
Net cash $70.56M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 3.1% last year.
- Reward Returns 10.8% on equity, ahead of 60% of its peers.
- Reward Free cash flow was positive in 10/10 years.
What this company does
eGain Corporation
eGain sells AI-powered software that acts as a central brain for a company's customer service, ensuring customers get consistent and correct answers from both human agents and chatbots. The company makes most of its money from recurring revenue (predictable income from ongoing software subscriptions), which investors often like because it creates a steady and foreseeable cash flow.
How the company got here
Founded in 1997 by the creators of an early internet search company, eGain's first product was designed to manage large volumes of customer email. The company went public on the NASDAQ stock exchange in 1999. Over the years, eGain has grown by acquiring other software companies to add capabilities like live chat and artificial intelligence (AI). This history of acquisitions has helped it become a provider of AI-powered customer service solutions.
What it actually does
eGain provides software that helps large companies manage their customer service. Think about when you contact a company for help through their website chat, email, or social media; eGain's software is what the customer service agent might be using to find answers to your questions. Their main product is an 'AI Knowledge Hub' that acts as a single source of truth, gathering all of a company's information (like policies and procedures) in one place. This helps ensure that customers get consistent and accurate answers, whether they are using a self-service option or talking to a human agent.
SaaS (Software-as-a-Service)
This is eGain's primary way of making money, accounting for the vast majority of its revenue (the money it brings in from sales). Instead of selling their software for a one-time fee, eGain charges a recurring subscription, much like a Netflix or Spotify subscription. Customers, which are typically large businesses in industries like banking, healthcare, and insurance, pay regularly to access eGain's cloud-based platform. This business model provides a steady and predictable stream of income for the company.
Professional Services
This is a smaller part of eGain's business. It includes services that help customers get the most out of the software they've subscribed to. This can involve consulting to help set up the system, training employees on how to use it, and providing ongoing management and support. While this segment brings in less revenue than software subscriptions, it plays an important role in ensuring customers are successful with eGain's products.
What management is betting on now
eGain's leadership is heavily focused on artificial intelligence (AI) as the future of the company. They are actively transitioning their business to have almost all of their recurring revenue come from AI-powered products by 2030. This involves a deliberate strategy of growing their AI customer base while phasing out older, non-AI products. The company believes that high-quality knowledge is essential for reliable AI systems and sees a big opportunity in helping large enterprises use AI to improve their customer service and efficiency.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$845.00K
FY2025 Q2
$6.29M
FY2025 Q3
$2.11M
FY2025 Q4
$-4.54M
FY2026 Q1
$10.21M
FY2026 Q2
$9.87M
FY2026 Q3
$-1.87M
FY2026 Q4
$2.32M
Revenue
$22.15M
Net income
$1.30M
Diluted EPS
0.05
Operating cash flow
$2.42M
Free cash flow
$2.32M
Fetching…
Sources
Revenue
$22.50M
Net income
$2.42M
Diluted EPS
0.09
Operating cash flow
$-1.81M
Free cash flow
$-1.87M
Fetching…
Sources
Revenue
$22.98M
Net income
$2.34M
Diluted EPS
0.08
Operating cash flow
$10.11M
Free cash flow
$9.87M
Fetching…
Sources
Revenue
$23.51M
Net income
$2.82M
Diluted EPS
0.10
Operating cash flow
$10.43M
Free cash flow
$10.21M
Fetching…
Sources
Revenue
$23.23M
Net income
$30.86M
Diluted EPS
1.09
Operating cash flow
$-4.33M
Free cash flow
$-4.54M
Fetching…
Sources
Revenue
$21.01M
Net income
$66.00K
Diluted EPS
0.00
Operating cash flow
$2.21M
Free cash flow
$2.11M
Fetching…
Sources
Revenue
$22.39M
Net income
$671.00K
Diluted EPS
0.02
Operating cash flow
$6.42M
Free cash flow
$6.29M
Fetching…
Sources
Revenue
$21.80M
Net income
$652.00K
Diluted EPS
0.02
Operating cash flow
$954.00K
Free cash flow
$845.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $24.05 vs current price $5.81
Wall Street consensus is the average analyst price target: $6.33 (-73.7% lower than our fair-value estimate).
Our most-likely fair value is $24.05 a share — about 314.0% above today's price of $5.81, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $70.6M - more cash than debt. Interest coverage 3.5x.
Net debt
$-70.56M
Interest coverage
3.54x
eGain Corporation's profit covers its interest bill about 3.5 times over. which is stronger than every peer shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
EGAN
BASELINE
eGain Corporation
Total debt $2.78M Interest coverage 3.54x This is the baseline the peer rows are being compared against.
Total debt $398.56M Interest coverage -0.80x -100% vs EGAN This peer has almost no interest-payment cushion compared with EGAN.
Total debt $843.26M Interest coverage 2.05x -42% vs EGAN Carries about 1.7x less debt cushion than EGAN.
Total debt $34.59M Interest coverage 0.36x -90% vs EGAN Carries about 9.9x less debt cushion than EGAN.
What you should know
The case for and against EGAN
3 Rewards
0 Risks
Rewards
-
Revenue grew 3.1% last year.
-
Returns 10.8% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
18.16x
Forward P/E
13.62x
P/B
1.74x
P/S
1.67x
EV/EBITDA
9.63x
PEG ratio
1.40x
Profitability
How much profit each dollar creates
Gross margin
73.4%
Operating margin
4.9%
Net margin
9.7%
ROE
10.8%
ROA
3.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.03x
Current ratio
1.73x
Quick ratio
1.65x
Total debt
$2.78M
Total cash
$73.34M
Growth
How the business has been compounding
Revenue TTM
$91.14M
Revenue 5Y CAGR
37.4%
EPS TTM
0.32
EPS 5Y CAGR
74.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$21.15M
Free CF TTM
$20.53M
FCF margin
22.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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