EGain Reports Q2 Revenue Decline, Targets Q3 Revenue Growth

eGain Communications Corporation reported its Q2 2025 earnings, revealing a 6% year-over-year decline in total revenue to $22.4 million, despite a 17% increase in annual recurring revenue from its AI Knowledge Hub customers. The company achieved a GAAP net income of $671,000, or $0.02 per share, down from $2.2 million a year prior. Operating cash flow was reported at $6.4 million, while adjusted EBITDA decreased to $1.6 million compared to the previous year. eGain has revised its revenue guidance for the full fiscal year to between $88.5 million and $90.0 million and anticipates a GAAP net loss in Q3. The company continues to focus on expanding its SaaS and AI-driven solutions amid a competitive market environment. Despite recent challenges, eGain's strategic initiatives in the AI sector indicate potential for recovery and growth.