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Egain (EGAN) Q2 FY26 earnings results (second quarter fiscal 2026)

10-Q filed Feb 3, 2026

Egain (EGAN) reported revenue of $23.0M for the second quarter fiscal 2026 (Q2 FY26), +3% from a year earlier and -2% from the quarter before. Operating margin was 8.9%, net earnings $2.3M (10.2% of revenue).

Revenue$23.0M
Year over year+3%
Quarter over quarter-2%
Operating margin8.9%
Net earnings$2.3M

Egain, Q2 FY26: revenue $23.0M (+3% year over year), operating margin 8.9%, net earnings $2.3M, operating cash flow $10.1M. The chart follows the revenue to costs, profit and cash.

Q2 FY26AmountQ/QY/Y
Revenue$23.0M-2%+3%
Gross profit$16.8M-5%+7%
Operating profit$2.0M-28%+215%
Net earnings$2.3M-17%+248%
Operating cash flow$10.1M-3%+57%
Free cash flow$9.9M-3%+57%

What changed

Revenue was $23.0M in Q2 FY26, up 3% year over year and down 2% from the previous quarter. SaaS was the largest line at 95% of revenue. SaaS added $1.0M year over year (up 5%), 161% of the total change. Professional services declined 23%.

Gross margin was 73.1%, up 3.0 points from a year earlier. Operating profit was $2.0M, a 8.9% margin (up 6.0 points year over year). Of the extra revenue versus a year earlier, 237% reached operating profit, above the 3% margin then. Operating expenses fell 2% while revenue rose 3%. The fastest-growing cost line was General & admin (+10%). Net earnings were $2.3M, up 248% year over year. The effective tax rate was 11.4%. Non-operating items added $592K, 22% of pre-tax earnings, so the bottom line overstates operating performance.

Operating cash flow was $10.1M (up 57% year over year), 433% of net earnings. Non-cash charges added back $645K of share-based compensation. Working capital and other items added $7.1M. Capital expenditures of $234K left free cash flow of $9.9M.

Questions

What was Egain's revenue in the second quarter fiscal 2026?

Egain (EGAN) reported revenue of $23.0M for the second quarter fiscal 2026 (Q2 FY26), +3% from a year earlier and -2% from the quarter before.

Was Egain profitable in the second quarter fiscal 2026?

Operating profit was $2.0M (8.9% of revenue) and net earnings $2.3M.

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Source: Egain 10-Q on SEC EDGAR.