📊 EGAN Key Takeaways
Is EGAIN Corp (EGAN) a Good Investment?
EGAIN demonstrates fortress-like financial health with exceptional free cash flow generation (26.4% FCF margin) and pristine balance sheet ($80.5M cash, minimal debt), but is constrained by declining revenues (-4.7% YoY) and flat net earnings growth, indicating a mature business in consolidation rather than expansion phase.
eGain shows solid underlying fundamentals with high gross margins, double-digit net margins, very strong free cash flow generation, and an exceptionally clean balance sheet supported by substantial cash and virtually no long-term debt. However, revenue declined year over year and net income was flat, which weakens growth quality and suggests the business is currently relying more on efficiency and cash conversion than on durable top-line expansion.
EGAIN Corp Key Strengths (EGAN)
- Outstanding free cash flow of $18.2M representing 26.4% of revenue, demonstrating cash conversion excellence
- Fortress balance sheet with $80.5M cash, $7K debt, and 2.15x current ratio providing substantial financial stability
- High gross margins of 73.9% and solid operating margins of 10% characteristic of quality software businesses
- Minimal capital intensity with CapEx of only $522K enabling strong cash preservation
- High profitability profile with 74.2% gross margin and 11.1% net margin
- Excellent financial health with $83.06M in cash, strong liquidity, and negligible long-term debt
- Outstanding cash generation with $20.08M of free cash flow and a 43.2% FCF margin
EGAN Stock Risks: EGAIN Corp Investment Risks
- Revenue contraction of -4.7% YoY signals declining market demand or market share loss in core business
- Flat net income growth despite strong margins suggests operational challenges offset by cost discipline
- Modest return on equity (8.3%) and return on assets (5.4%) indicate inefficient capital deployment
- Zero insider Form 4 filings in past 90 days may signal lack of management confidence in business momentum
- EPS growth of 352% appears artificially driven by share buybacks rather than operational improvement
- Revenue contraction of 4.7% year over year raises concern about demand durability and future scale
- Net income was essentially flat, indicating limited earnings growth despite strong margins
- Large EPS increase appears disconnected from flat net income, reducing its usefulness as a signal of underlying operating improvement
Key Metrics to Watch
- Quarterly revenue trend and customer retention rates to confirm stabilization or further decline
- Operating margin trajectory to assess whether cost-cutting is sustainable or damaging
- Free cash flow sustainability and how management deploys capital (buybacks vs. growth investment)
- Gross margin maintenance as indicator of pricing power and product competitiveness
- Revenue growth and recurring revenue stability
- Operating margin and free cash flow margin sustainability
EGAIN Corp (EGAN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 26.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 2.15x current ratio provides a solid financial cushion.
EGAN Profit Margin, ROE & Profitability Analysis
EGAN vs Technology Sector: How EGAIN Corp Compares
How EGAIN Corp compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is EGAIN Corp Stock Overvalued? EGAN Valuation Analysis 2026
Based on fundamental analysis, EGAIN Corp has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
EGAIN Corp Balance Sheet: EGAN Debt, Cash & Liquidity
EGAN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: EGAIN Corp's revenue has grown significantly by 19% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.25 reflects profitable operations.
EGAN Revenue Growth, EPS Growth & YoY Performance
EGAN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $21.0M | $66.0K | $0.00 |
| Q2 2026 | $22.4M | $671.0K | $0.02 |
| Q1 2026 | $21.8M | $652.0K | $0.02 |
| Q3 2025 | $21.0M | $66.0K | $0.00 |
| Q2 2025 | $22.4M | $671.0K | $0.02 |
| Q1 2025 | $21.8M | $652.0K | $0.02 |
| Q3 2024 | $22.4M | -$372.0K | $-0.01 |
| Q2 2024 | $23.8M | -$104.0K | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
EGAIN Corp Dividends, Buybacks & Capital Allocation
EGAN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for EGAIN Corp (CIK: 0001066194)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EGAN
What is the AI rating for EGAN?
EGAIN Corp (EGAN) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EGAN's key strengths?
Claude: Outstanding free cash flow of $18.2M representing 26.4% of revenue, demonstrating cash conversion excellence. Fortress balance sheet with $80.5M cash, $7K debt, and 2.15x current ratio providing substantial financial stability. ChatGPT: High profitability profile with 74.2% gross margin and 11.1% net margin. Excellent financial health with $83.06M in cash, strong liquidity, and negligible long-term debt.
What are the risks of investing in EGAN?
Claude: Revenue contraction of -4.7% YoY signals declining market demand or market share loss in core business. Flat net income growth despite strong margins suggests operational challenges offset by cost discipline. ChatGPT: Revenue contraction of 4.7% year over year raises concern about demand durability and future scale. Net income was essentially flat, indicating limited earnings growth despite strong margins.
What is EGAN's revenue and growth?
EGAIN Corp reported revenue of $69.0M.
Does EGAN pay dividends?
EGAIN Corp does not currently pay dividends.
Where can I find EGAN SEC filings?
Official SEC filings for EGAIN Corp (CIK: 0001066194) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EGAN's EPS?
EGAIN Corp has a diluted EPS of $0.27.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is EGAN's fundamental grade?
Based on our AI fundamental analysis in June 2026, EGAIN Corp has a B grade with 71% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is EGAN stock overvalued or undervalued?
Valuation metrics for EGAN: ROE of 8.3% (sector avg: 22%), net margin of 11.0% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is EGAN's AI grade for 2026?
Our dual AI analysis gives EGAIN Corp a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EGAN's free cash flow?
EGAIN Corp's operating cash flow is $18.7M, with capital expenditures of $522.0K. FCF margin is 26.4%.
How does EGAN compare to other Technology stocks?
Vs Technology sector averages: Net margin 11.0% (avg: 18%), ROE 8.3% (avg: 22%), current ratio 2.15 (avg: 2.5).