EGAN
EGAIN Corp
Next earnings Sep 2, 2026 · consensus $0.03 EPS, $22.2M rev
Last earnings +3.9% on 2026-05-14
$6.53
▲ +2.03%$6.53▲ +5.15%
over 1Y
L $5.58H $15.46
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+2.0%
1W+6.9%
1M-15.6%
3M-16.5%
YTD-36.7%
1Y+5.2%
Hold
Conviction
Horizon
Medium (3–12mo)
12-mo target
$•••
Street · 9 analysts
Buy
Cheap and cash-rich but shrinking — the 5.8x P/E is a tax-benefit mirage; operating profit and SaaS revenue are both fading.
Revenue (FY2025) $88.4M · FY2025
The read
Middling fundamentals offset by an attractive price (~558% below fair value) — worth a look on the value angle.
eGain is a profitable, debt-light niche software vendor (AI knowledge hub for customer experience) whose headline numbers flatter a business that is quietly contracting. Total revenue fell for a second straight year to $88.4M (-4.7%), down from the FY2023 peak of $98.0M, and the MD&A shows the rot is in the core: SaaS revenue -4% to $81.9M and professional services -16%. That is the wrong trajectory for a company selling an 'AI knowledge hub' into an AI-hungry market — the story is disinflation, not the AI tailwind the narrative implies.
The seductive 5.8x P/E is not what it looks like. Net income of $32.3M (+315%) and a 36.5% net margin sit on top of an operating margin of just 5.0% and operating income of only $4.43M (down 25.8%). That gap is a one-time deferred-tax benefit — the balance sheet still carries a -$291M accumulated deficit — so the $1.13 diluted EPS is inflated and will not recur. On the real engine, non-GAAP operating income fell to $6.9M from $10.5M and operating cash flow collapsed 58% to $5.26M. Value the operating business, not the tax event, and the stock is closer to fairly priced than cheap.
Is EGAN a buy? The one-page verdict, explained →
The options angle
model · matches our verdictCovered call~60d expiry
- Long 100 shares @ ~6.53
- Short call 7 @ ~0.42 est
debit $611max +$89max −$610BE 6.11
HOLD means own it, don't chase it — harvesting premium against the position matches the verdict.
Educational template, not a trade recommendation. Strikes and premiums are Black-Scholes model estimates from the last close and 30-day realized volatility — real chains, spreads and IV will differ. Options involve substantial risk.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $78.3M | $92.0M | $98.0M | $92.8M | $88.4M |
| Gross profit | $59.0M | $67.4M | $70.7M | $65.2M | $62.0M |
| Operating income | $7.34M | -$2.14M | $1.39M | $5.97M | $4.43M |
| Net income | $6.96M | -$2.44M | $2.11M | $7.78M | $32.3M |
| Diluted EPS | $0.21 | -$0.08 | $0.06 | $0.25 | $1.13 |
| Net margin | 8.9% | -2.7% | 2.2% | 8.4% | 36.5% |
10-year statements — income, cash flow, balance sheet & CSV export →
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$137M
EV / EBITDA27.0
EV / Sales1.5
EV / FCF29.1
P / FCF38.2
PEG (trailing)0.02
Earnings yield18.0%
FCF yield2.6%
Quality & risk
ROIC (est.)3.5%
Free cash flow$4.70M
Total debt$20.2M
Net cash$42.7M
Altman Z-Score-0.15 distress
Piotroski F-Score5/9
Capital returns
Buyback yield8.8%
Dividend yield (est.)—
Shareholder yield8.8%
Shares Δ YoY-5.8%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsSome governance/structural items recently, but no outright red flags.
- 8-K Earnings results2026-05-14
Q3 FY2026 quarterly report filed (period ended Mar 31, 2026)
- 10-Q Quarterly report2026-05-14
Q3 FY2026 quarterly report filed (period ended Mar 31, 2026)
- 8-K Earnings results2026-02-03
Q2 FY2026 quarterly report filed (period ended Dec 31, 2025)
- 10-Q Quarterly report2026-02-03
Q2 FY2026 quarterly report filed (period ended Dec 31, 2025)
- 8-K Shareholder vote2025-12-11
Annual meeting vote results; directors elected, proposals passed
- 8-K Earnings results2025-11-12
Q1 FY2026 quarterly report filed (period ended Sep 30, 2025)
- 10-Q Quarterly report2025-11-12
Q1 FY2026 quarterly report filed (period ended Sep 30, 2025)
- DEF 14A Proxy statement2025-10-17
Proxy for 2025 annual meeting: director slate, pay, auditor ratification
- 8-K Officer / director change2025-09-26
Governance overhaul: exec/board change, new bylaws, ethics-code & agreement
Recent filings
all on EDGAR ↗10-QPeriod ending 2026-03-312026-05-14open ↗8-KPeriod ending 2026-05-142026-05-14open ↗SCHEDULE 13G/AFiling2026-03-26open ↗4Period ending 2026-02-022026-02-04open ↗10-QPeriod ending 2025-12-312026-02-03open ↗8-KPeriod ending 2026-02-032026-02-03open ↗144Filing2026-02-02open ↗4Period ending 2026-01-022026-01-06open ↗144Filing2026-01-02open ↗8-KPeriod ending 2025-12-092025-12-11open ↗4Period ending 2025-12-042025-12-08open ↗144Filing2025-12-04open ↗
Frequently asked
- Is EGAIN Corp (EGAN) a buy?
- EGAN currently carries a Hold rating with 3/5 conviction, derived from its latest SEC filings. Cheap and cash-rich but shrinking — the 5.8x P/E is a tax-benefit mirage; operating profit and SaaS revenue are both fading.
- What is EGAN's fair value?
- A Modified-Graham model based on EGAN's SEC fundamentals estimates a fair value of about $42.94. It is an estimate from reported earnings, not a price target.
- Is EGAN overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, EGAN currently appears undervalued relative to its SEC-grounded earnings power.
- What is EGAIN Corp's quality score?
- EGAN scores 70.48096955128206/100 (grade B) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0001066194, latest 10-Q filed 2026-05-14) · EODHD · Proprietary analysis · as of 7/3/2026, 3:37:55 PM.
About this recommendation — produced by TENK/calls (tenkcalls.com), Luxembourg · not investment advice
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jul 3, 2026, 11:37 AM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.