eGain delivered total revenue of $23.0 million in its fiscal Q2 2026, reflecting a 3% year-over-year increase. The company’s AI Knowledge Hub annual recurring revenue (ARR) rose 27% to $48.4 million, representing 64% of total SaaS ARR. This acceleration underscores the growing customer preference for eGain’s AI-powered knowledge management solutions.

GAAP gross margin expanded to 73% from 70% in Q2 2025, while non-GAAP gross margin climbed to 74% from 71% a year ago. On a GAAP basis, net income reached $2.3 million, or $0.09 per share (basic), up from $671,000, or $0.02 per share. Non-GAAP net income was $3.0 million, or $0.11 per share, compared with $1.3 million, or $0.05 per share in the prior-year period. Adjusted EBITDA doubled to $3.3 million, a 14% margin versus 7% last year.

Operating activities provided $10.1 million of cash, driving an operating cash flow margin of 44%. eGain’s cash and cash equivalents balance grew to $83.1 million, up from $70.5 million in Q2 2025, bolstering financial flexibility for continued R&D investment and potential M&A opportunities.

During the quarter, eGain secured a major contract with Achmea to support 21,000 users across contact center and enterprise teams. For Q3 fiscal 2026, management expects revenue of $22.2–$22.7 million, non-GAAP net income of $1.8–$2.3 million (or $0.06–$0.08 per share) and adjusted EBITDA of $2.6–$3.1 million (12–14% margin). Full-year revenue guidance was raised to $90.5–$92.0 million, with non-GAAP net income projected at $8.8–$10.3 million and adjusted EBITDA of $10.9–$12.4 million (12–13% margin).