eGain Corporation logo

eGain Corporation(EGAN)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$5.29
10/06/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for EGAN

10/06/2026: EGAN (1-star) is currently NOT-A-BUY. Pass it for now.

eGain Corporation is a specialized provider of AI-powered customer engagement and knowledge management software designed for large enterprises. The company's primary strength lies in its long-standing expertise and unified cloud platform, which helps businesses automate complex customer service tasks. Its main investment story centers on the integration of Generative AI to modernize legacy service tools and capture enterprise demand for automation. However, the company faces significant risks from larger, well-capitalized CRM competitors and the potential for technological disruption. The stock may suit growth-oriented investors looking for a niche software player, though potential investors should monitor product adoption rates and competitive positioning closely.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fiteGain offers exposure to AI-driven customer service, but growth has been moderate rather than explosive.
Momentum investorWeak fitThe stock lacks the consistent high-volume trading and price action typically required by momentum strategies.
Value investorStrong fit while signal remains positiveThe company is often reasonably priced relative to its cash position and underlying software assets.
Dividend investorWeak fitThe company does not pay a dividend and has no current plans to initiate one.
Low-risk investorMixed fitWhile the company has a stable balance sheet, small-cap software stocks can experience significant price volatility.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highSmall-cap stocks in the tech sector are often subject to broader market sentiment shifts.
Valuation riskMediumMarket pricing of software stocks fluctuates, and eGain is not immune to sector valuation compressions.
Competition risk (AI dominance)HighLarge competitors are aggressively integrating AI, which could diminish eGain's specialized advantage.
Business qualityMediumThe company has a solid reputation but lacks the scale or 'moat' of larger enterprise platforms.
Dividend incomeLow / noneInvestors should not expect income generation from this stock.
Execution riskMediumThe company must successfully navigate the rapid AI transition to maintain its value proposition.

Price Behavior

Steep Decline
PRICE PATH

Steep Decline

The stock price has dropped sharply with strong downward pressure.

Choppy
PRICE STABILITY

Choppy

The stock has experienced frequent reversals and pronounced short-term price swings.

Analysis of Past Performance

Type Stock
Historic Profit 15.38%
Avg. Invested days 44
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 2.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/06/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
EGAN receives a 3-star rating, supported by solid unit economics, and solid company fundamentals. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
EGAN has solid overall fundamentals (4 stars), with moderate financial health, moderate growth momentum, and solid ownership. In FY2026 versus FY2025, strong cash generation (FCF margin 22.5%) is partially offset by negative earnings growth (-72.5%), moderate revenue growth (+3.1%), soft profitability (net margin 9.7%).

Financial Health Rating

★★★★★
EGAN's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 29.0%). Profitability is moderate (3 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is EGAN's strongest growth driver at +337.1% FY2026 versus FY2025 (strong, 5 stars). By comparison, while revenue growth (+3.1%, moderate) and earnings growth (-72.5%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 58.5% and approximately 52.6% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 42.40% supports management-shareholder alignment.

Top 5 Institutional Investors

OAKTOP CAPITAL MANAGEMENT II LP 10.21%
BlackRock Inc 4.88%
Acadian Asset Management LLC 4.21%
Vanguard Capital Management, LLC 3.10%
Renaissance Technologies Corp 2.91%

Unit Economics (Per $1K Revenue)

★★★★★
EGAN generates approximately $734 of gross profit, $87 of operating income, and $225 of free cash flow for every $1,000 of revenue. Based on FY2026 results. Solid margins, cash conversion, and capital efficiency support the rating.

Economic Dimensions

★★★★★
Effective Tax Rate: 17.78%

Quantitative Style Profile

★★★★★
EGAN has a liquid profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedSmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 156.24M USD
Price to earnings Ratio 18.66
1Y Target Price 6.33
Price to earnings Ratio 18.66
1Y Target Price 6.33
Volume (30-day avg) 325.2K shares
Beta 0.81
52 Weeks Range 5.02 - 15.95
Updated Date 10/05/2026
52 Weeks Range 5.02 - 15.95
Updated Date 10/05/2026
Dividends yield (FY) -
Basic EPS (TTM) 0.32

How Company Makes Money

Business areaWhat it includesRetail investor read
Cloud SubscriptionRecurring fees for platform access and AI-powered knowledge management modules.The primary, predictable source of revenue that defines the company's long-term health.
Professional ServicesImplementation, consulting, and training services.A supporting revenue stream that helps secure and integrate the platform into client businesses.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 18.66
Forward PE 84.75
Enterprise Value 84.64M
Price to Sales(TTM) 1.71
Enterprise Value 84.64M
Price to Sales(TTM) 1.71
Enterprise Value to Revenue 0.93
Enterprise Value to EBITDA 8.88
Shares Outstanding 26.17M
Shares Floating 13.76M
Shares Outstanding 26.17M
Shares Floating 13.76M
Percent Insiders 42.4
Percent Institutions 58.52

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About eGain Corporation

Exchange NASDAQ
Headquarters Sunnyvale, CA, United States
IPO Launch date 1999-09-23
Co-Founder, Executive Chairman, CEO & President Mr. Ashutosh Roy
Sector Technology
Industry Software - Application
Full time employees 420
Full time employees 420

eGain Corporation engages in the development, license, implementation, and support of its customer service infrastructure software solutions in North America, Europe, the Middle East, Africa, and the Asia Pacific. It provides eGain AI Agent, which helps businesses to deploy enterprise-grade agentic solutions built on knowledge and guided actions; eGain AI Knowledge Hub to centralize knowledge, policies, procedures, situations, and best-practices, as well as guided and personalized answers to customers, agents, and field staff; and eGain Conversation Hub for scalable capabilities of digital-first interaction management within a modern, omnichannel desktop. The company also offers eGain Agentic Studio, which build agents that answer and act; Trusted Knowledge, a platform for Enterprise AI; eGain Evaluator, that offers proactive quality assurance for AI answers; and AI Knowledge Connectors, which connect every system, employee, customer, and AI agent to one source of trusted knowledge. In addition, it provides AI Knowledge Suite, provides trusted knowledge for people, AI, and every banking interaction for retail banking; and eGain AI Knowledge Suite, a knowledge foundation for reliable healthcare AI, as well as eGain AI return on investment calculator. Further, the company offers a cloud-based platform through subscription; professional services, such as consulting and implementation services, training services, and managed services. It serves banking, credit unions, financial services, government, healthcare providers, insurance, manufacturing, property and casualty insurance, outsourcing services, retail, technology, telecommunications, travel and hospitality, and utilities industries. The company was incorporated in 1997 and is headquartered in Sunnyvale, California.