Episode Details

eGain Corporation (EGAN) Q4 FY2026 — It traded down roughly 24% after the print, from a $7.11 close to about $5.43 in extended hours - through its 12-month closing low of $6.11. eGain's release is headlined "Total Revenue Up 3%". Inside that year, revenue fell sequentially in all four quarters - $23.51M, $22.98M, $22.50M, $22.15M - and the September-quarter guide midpoint of $21.15M makes it five. Management then guided fiscal 2027 revenue to $84.5-86.0M, BELOW the year just reported, with adjusted EBITDA of $0.65-1.4M against $13.6M delivered and a GAAP net loss. Subtract the Q1 guide from the full-year guide and the remaining nine months are guided to between minus $1.25M and zero. THE CALL: HOLD (3/5, MODERATE) — base-case value ~$5.15 vs ~$5.43 today. KEY METRICS: - Q4 FY2026 revenue $22.15M, down 4.7% YoY; non-GAAP EPS $0.08 (GAAP $0.05); adjusted EBITDA $2.17M at a 9.8% margin vs 19.2% - FY2026 revenue $91.1M (+3%) - but quarterly revenue fell sequentially all four quarters: $23.51M, $22.98M, $22.50M, $22.15M - FY2027 guide: revenue $84.5-86.0M (BELOW FY2026), adjusted EBITDA $0.65-1.4M vs $13.6M, and a GAAP net loss of $2.0-3.0M - Q1 FY2027 EBITDA is guided at $1.4-1.9M - larger than the entire year's $0.65-1.4M, leaving minus $1.25M to zero for the other nine months - The $21.2M of FY2026 operating cash flow includes an $8.4M receivables drawdown (DSO ~129 to ~100 days); underlying generation is ~$12.8M - Deferred revenue fell 3.9% to $48.5M - the forward book was already thinning before the guide - $73.3M cash, ZERO debt, 26.172M shares; $11.5M of stock retired in FY2026 at a $7.16 average - Gartner named eGain a Leader in the inaugural Customer Service Knowledge Management MQ, 16 July 2026 - Coverage is two analysts; the compiled FY2027 consensus of $93.2M revenue and $0.41 EPS predates this guide. No published price target could be sourced What to watch: a September-quarter revenue print below $20.9M, or any reduction to the $84.5-86.0M full-year range at the first quarter that tests it Also on YouTube: @ChargedAlpha DISCLAIMER: For informational and educational purposes only. Not financial advice. Do your own research before any investment decision.