EGAIN Corp 10-Q

Item 1. Financial Statements EGAIN CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value data) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ June 30, ​ ​ ​ ​ 2025 ​ ​ ​ 2025 ASSETS ​ ​ ​ ​ ​ ​ Current assets: ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 83,059 ​ $ 62,909 Restricted cash ​ 8 ​ 8 Accounts receivable, less provision for credit losses of $ 2 and $ 7 as of December 31, 2025 and June 30, 2025, respectively ​ 13,769 ​ 32,775 Costs capitalized to obtain revenue contracts, net ​ 970 ​ 1,148 Prepaid expenses ​ ​ 1,600 ​ ​ 2,841 Other current assets ​ 682 ​ 886 Total current assets ​ 100,088 ​ 100,567 Property and equipment, net ​ 930 ​ 670 Operating lease right-of-use assets ​ ​ 3,230 ​ ​ 3,530 Costs capitalized to obtain revenue contracts, net of current portion ​ 1,291 ​ 1,460 Goodwill ​ 13,186 ​ 13,186 Other assets, net ​ 28,042 ​ 28,592 Total assets ​ $ 146,767 ​ $ 148,005 ​ ​ ​ ​ ​ ​ ​ LIABILITIES AND STOCKHOLDERS' EQUITY ​ ​ ​ ​ ​ ​ Current liabilities: ​ ​ ​ ​ ​ ​ Accounts payable ​ $ 1,422 ​ $ 2,596 Accrued compensation ​ 4,782 ​ 6,749 Accrued liabilities ​ 2,974 ​ 2,821 Operating lease liabilities ​ ​ 1,517 ​ ​ 1,220 Deferred revenue ​ 42,089 ​ 48,765 Total current liabilities ​ 52,784 ​ 62,151 Deferred revenue, net of current portion ​ 2,358 ​ 1,766 Operating lease liabilities, net of current portion ​ ​ 1,995 ​ ​ 2,449 Other long-term liabilities ​ 845 ​ 908 Total liabilities ​ 57,982 ​ 67,274 Commitments and contingencies (Note 6) ​ ​ ​ ​ ​ ​ Stockholders' equity: ​ ​ ​ ​ ​ ​ Common stock, par value $ 0.001 per share - authorized: 60,000 shares; issued: 33,766 and 33,237 shares as of December 31, 2025 and June 30, 2025, respectively; outstanding: 27,381 and 27,083 shares as of December 31, 2025 and June 30, 2025, respectively ​ 34 ​ 33 Additional paid-in capital ​ 416,258 ​ 411,253 Treasury stock, at cost: 6,385 and 6,154 shares of common stock as of December 31, 2025 and June 30, 2025, respectively ​ ​ ( 40,252 ) ​ ​ ( 38,812 ) Accumulated other comprehensive loss ​ ( 1,004 ) ​ ( 336 ) Accumulated deficit ​ ( 286,251 ) ​ ( 291,407 ) Total stockholders' equity ​ 88,785 ​ 80,731 Total liabilities and stockholders' equity ​ $ 146,767 ​ $ 148,005 ​ See accompanying notes to condensed consolidated financial statements. 2 Table of Contents ​ EGAIN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ December 31, ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ 2025 ​ ​ ​ 2024 Revenue: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SaaS ​ $ 21,799 ​ $ 20,847 ​ $ 43,699 ​ $ 40,667 Professional services ​ 1,180 ​ 1,542 ​ 2,788 ​ 3,521 Total revenue ​ 22,979 ​ 22,389 ​ 46,487 ​ 44,188 Cost of revenue: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cost of SaaS ​ 4,438 ​ 4,626 ​ 8,609 ​ 9,148 Cost of professional services ​ 1,734 ​ 2,054 ​ 3,394 ​ 4,198 Total cost of revenue ​ 6,172 ​ 6,680 ​ 12,003 ​ 13,346 Gross profit ​ 16,807 ​ 15,709 ​ 34,484 ​ 30,842 Operating expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Research and development ​ 7,277 ​ 7,708 ​ 14,592 ​ 15,129 Sales and marketing ​ 5,174 ​ 5,251 ​ 9,203 ​ 10,011 General and administrative ​ 2,310 ​ 2,100 ​ 5,810 ​ 4,543 Total operating expenses ​ 14,761 ​ 15,059 ​ 29,605 ​ 29,683 Income from operations ​ 2,046 ​ 650 ​ 4,879 ​ 1,159 Interest income ​ 624 ​ 661 ​ 1,086 ​ 1,432 Other income (expense), net ​ ( 32 ) ​ ( 431 ) ​ 423 ​ ( 571 ) Income before income tax provision ​ 2,638 ​ 880 ​ 6,388 ​ 2,020 Income tax provision ​ ( 302 ) ​ ( 209 ) ​ ( 1,232 ) ​ ( 697 ) Net income ​ $ 2,336 ​ $ 671 ​ $ 5,156 ​ $ 1,323 Per share information: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 0.09 ​ $ 0.02 ​ $ 0.19 ​ $ 0.05 Diluted ​ $ 0.08 ​ $ 0.02 ​ $ 0.19 ​ $ 0.05 Weighted-average shares used in computation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ 27,186 ​ 28,573 ​ 27,074 ​ 28,622 Diluted ​ 28,349 ​ 29,059 ​ 27,858 ​ 29,176 ​ See accompanying notes to condensed consolidated financial statements . ​ 3 Table of Contents EGAIN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ December 31, ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 2025 ​ ​ ​ 2024 Net income ​ $ 2,336 ​ $ 671 ​ $ 5,156 ​ $ 1,323 Other comprehensive income, net of taxes: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency translation adjustments ​ 3 ​ ( 92 ) ​ ( 668 ) ​ 298 Total comprehensive income ​ $ 2,339 ​ $ 579 ​ $ 4,488 ​ $ 1,621 ​ See accompanying notes to condensed consolidated financial statements. ​ ​ 4 Table of Contents EGAIN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (in thousands) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended December 31, 2025 ​ Common Stock ​ Additional Paid-in ​ Treasury Stock ​ Accumulated Other Comprehensive ​ Accumulated ​ Total Stockholders' ​ Shares ​ ​ ​ Amount ​ ​ ​ Capital ​ ​ ​ Shares ​ ​ ​ Amount ​ ​ ​ Loss ​ ​ ​ Deficit ​ ​ ​ Equity Balances as of September 30, 2025 26,914 ​ $ 33 ​ $ 413,372 ​ 6,385 ​ $ ( 40,283 ) ​ $ ( 1,007 ) ​ $ ( 288,587 ) ​ $ 83,528 Issuance of common stock upon vesting of restricted stock units 162 ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Issuance of common stock upon exercise of stock options 235 ​ ​ 1 ​ ​ 1,921 ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 1,922 Issuance of common stock in connection with employee stock purchase plan 70 ​ ​ — ​ ​ 320 ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 320 Repurchase of common stock and related — ​ ​ — ​ ​ — ​ — ​ ​ 31 ​ ​ — ​ ​ — ​ ​ 31 Stock-based compensation — ​ ​ — ​ ​ 645 ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 645 Foreign currency translation adjustments — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ 3 ​ ​ — ​ ​ 3 Net income — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ 2,336 ​ ​ 2,336 Balances as of December 31, 2025 27,381 ​ $ 34 ​ $ 416,258 ​ 6,385 ​ $ ( 40,252 ) ​ $ ( 1,004 ) ​ $ ( 286,251 ) ​ $ 88,785 ​ ​ ​ ​ See accompanying notes to condensed consolidated financial statements. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 5 Table of Contents ​ ​ ​ ​ EGAIN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (in thousands) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended December 31, 2024 ​ Common Stock ​ Additional Paid-in ​ Treasury Stock ​ Notes Receivable From ​ Accumulated Other Comprehensive ​ Accumulated ​ Total Stockholders' ​ Shares ​ ​ ​ Amount ​ ​ ​ Capital ​ ​ ​ Shares ​ ​ ​ Amount ​ Stockholders ​ ​ ​ Loss ​ ​ ​ Deficit ​ ​ ​ Equity Balances as of September 30, 2024 28,522 ​ $ 33 ​ $ 408,211 ​ 4,208 ​ $ ( 27,616 ) ​ $ ( 21 ) ​ $ ( 1,850 ) ​ $ ( 323,009 ) ​ $ 55,748 Issuance of common stock upon exercise of stock options 117 ​ ​ — ​ ​ 294 ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 294 Issuance of common stock upon vesting of restricted stock units 169 ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Issuance of common stock in connection with employee stock purchase plan 94 ​ ​ — ​ ​ 424 ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 424 Repurchase of common stock ( 421 ) ​ ​ — ​ ​ — ​ 421 ​ ​ ( 2,409 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 2,409 ) Stock-based compensation — ​ ​ — ​ ​ 622 ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 622 Foreign currency translation adjustments — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ ( 92 ) ​ ​ — ​ ​ ( 92 ) Net income — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 671 ​ ​ 671 Balances as of December 31, 2024 28,481 ​ $ 33 ​ $ 409,551 ​ 4,629 ​ $ ( 30,025 ) ​ $ ( 21 ) ​ $ ( 1,942 ) ​ $ ( 322,338 ) ​ $ 55,258 ​ ​ ​ ​ See accompanying notes to condensed consolidated financial statements. ​ 6 Table of Contents EGAIN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (cont.) (in thousands) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended December 31, 2025 ​ Common Stock ​ Additional Paid-in ​ Treasury Stock ​ Accumulated Other Comprehensive ​ Accumulated ​ Total Stockholders' ​ Shares ​ ​ ​ Amount ​ ​ ​ Capital ​ ​ ​ Shares ​ ​ ​ Amount ​ ​ ​ Loss ​ ​ ​ Deficit ​ ​ ​ Equity Balances as of June 30, 2025 27,083 ​ $ 33 ​ $ 411,253 ​ 6,154 ​ $ ( 38,812 ) ​ $ ( 336 ) ​ $ ( 291,407 ) ​ $ 80,731 Issuance of common stock upon vesting of restricted stock units 162 ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Issuance of common stock upon exercise of stock options 297 ​ ​ 1 ​ ​ 2,167 ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 2,168 Issuance of common stock in connection with employee stock purchase plan 70 ​ ​ — ​ ​ 320 ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 320 Issuance of common stock warrant for services — ​ ​ — ​ ​ 1,350 ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 1,350 Repurchase of common stock ( 231 ) ​ ​ — ​ ​ — ​ 231 ​ ​ ( 1,440 ) ​ ​ — ​ ​ — ​ ​ ( 1,440 ) Stock-based compensation — ​ ​ — ​ ​ 1,168 ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 1,168 Foreign currency translation adjustments — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ ( 668 ) ​ ​ — ​ ​ ( 668 ) Net income — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ 5,156 ​ ​ 5,156 Balances as of December 31, 2025 27,381 ​ $ 34 ​ $ 416,258 ​ 6,385 ​ $ ( 40,252 ) ​ $ ( 1,004 ) ​ $ ( 286,251 ) ​ $ 88,785 ​ ​ ​ ​ See accompanying notes to condensed consolidated financial statements. 7 Table of Contents EGAIN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (cont.) (in thousands) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended December 31, 2024 ​ Common Stock ​ Additional Paid-in ​ Treasury Stock ​ Notes Receivable From ​ Accumulated Other Comprehensive ​ Accumulated ​ Total Stockholders' ​ Shares ​ ​ ​ Amount ​ ​ ​ Capital ​ Shares ​ ​ ​ Amount ​ Stockholders ​ Loss ​ Deficit ​ Equity Balances as of June 30, 2024 29,160 ​ $ 33 ​ $ 407,416 ​ 3,538 ​ $ ( 23,031 ) ​ $ ( 21 ) ​ $ ( 2,240 ) ​ $ ( 323,661 ) ​ $ 58,496 Issuance of common stock upon exercise of stock options 149 ​ ​ — ​ ​ 457 ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 457 Issuance of common stock upon vesting of restricted stock units 169 ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Issuance of common stock in connection with employee stock purchase plan 94 ​ ​ — ​ ​ 424 ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 424 Repurchase of common stock ( 1,091 ) ​ ​ — ​ ​ — ​ 1,091 ​ ​ ( 6,994 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 6,994 ) Stock-based compensation — ​ ​ — ​ ​ 1,254 ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 1,254 Foreign currency translation adjustments — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ 298 ​ ​ — ​ ​ 298 Net income — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 1,323 ​ ​ 1,323 Balances as of December 31, 2024 28,481 ​ $ 33 ​ $ 409,551 ​ 4,629 ​ $ ( 30,025 ) ​ $ ( 21 ) ​ $ ( 1,942 ) ​ $ ( 322,338 ) ​ $ 55,258 ​ ​ ​ ​ See accompanying notes to condensed consolidated financial statements. ​ ​ 8 Table of Contents EGAIN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Cash flows from operating activities: ​ ​ ​ ​ ​ ​ Net income ​ $ 5,156 ​ $ 1,323 Adjustments to reconcile net income to net cash provided by operating activities: ​ ​ ​ ​ ​ ​ Amortization of costs capitalized to obtain revenue contracts ​ 626 ​ 684 Amortization of right-of-use assets ​ ​ 572 ​ ​ 545 Depreciation and amortization ​ 183 ​ 175 Provision for (recovery of) credit losses ​ ( 5 ) ​ 73 Deferred income taxes ​ ​ 484 ​ ​ ( 41 ) Stock-based compensation ​ 1,168 ​ 1,254 Issuance of common stock warrant for services ​ ​ 1,350 ​ ​ — Gain on disposal of property and equipment ​ ​ — ​ ​ ( 6 ) Changes in operating assets and liabilities: ​ ​ ​ ​ ​ ​ Accounts receivable ​ 18,905 ​ 15,823 Costs capitalized to obtain revenue contracts ​ ( 297 ) ​ ( 518 ) Prepaid expenses ​ ​ 1,750 ​ ​ 679 Other current assets ​ 269 ​ 328 Other non-current assets ​ ​ ( 28 ) ​ ​ 119 Accounts payable ​ ( 1,691 ) ​ ( 886 ) Accrued compensation ​ ( 1,935 ) ​ ( 1,395 ) Accrued liabilities ​ 397 ​ ( 1,544 ) Deferred revenue ​ ( 5,903 ) ​ ( 8,835 ) Operating lease liabilities ​ ​ ( 427 ) ​ ​ ( 462 ) Other long-term liabilities ​ ( 34 ) ​ 62 Net cash provided by operating activities ​ 20,540 ​ 7,378 Cash flows from investing activities: ​ ​ ​ ​ ​ ​ Purchases of property and equipment ​ ​ ( 458 ) ​ ( 248 ) Net cash used in investing activities ​ ( 458 ) ​ ( 248 ) Cash flows from financing activities: ​ ​ ​ ​ ​ ​ Proceeds from exercise of stock options ​ 2,168 ​ 457 Proceeds from employee stock purchase plan ​ ​ 320 ​ ​ 424 Repurchases of common stock ​ ​ ( 1,440 ) ​ ​ ( 6,994 ) Net cash provided by (used in) financing activities ​ 1,048 ​ ( 6,113 ) Effect of change in exchange rates on cash and cash equivalents ​ ( 980 ) ​ ( 489 ) Net increase in cash, cash equivalents and restricted cash ​ 20,150 ​ 528 Cash, cash equivalents and restricted cash at beginning of period ​ 62,917 ​ 70,011 Cash, cash equivalents and restricted cash at end of period ​ $ 83,067 ​ $ 70,539 ​ ​ ​ ​ ​ ​ ​ Supplemental cash flow disclosures: ​ ​ ​ ​ ​ ​ Cash paid for taxes ​ $ 133 ​ $ 691 Right-of-use (ROU) assets and lease liabilities recognized from lease modification ​ $ 338 ​ $ 599 Non-cash items: ​ ​ ​ ​ ​ ​ Purchases of equipment included in accounts payable ​ $ 55 ​ $ 4 ​ See accompanying notes to condensed consolidated financial statements. ​ 9 Table of Contents EGAIN CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) ​ 1. SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES ​ Organization and Nature of Business ​ eGain automates customer experience with an AI knowledge hub solution. We sell our SaaS solution to enterprises who want to improve customer experience while reducing cost, by using AI to synthesize and deliver trusted, consumable answers from a knowledge hub. We are headquartered in Sunnyvale, California, USA. We also operate in the United Kingdom and India. ​ Fiscal Year ​ The Company’s fiscal year ends on June 30. References to fiscal year 2026 refers to the Company’s fiscal year ending June 30, 2026. References to fiscal year 2025 refers to the Company’s fiscal year ended June 30, 2025. ​ Basis of Presentation ​ The accompanying condensed consolidated balance sheet as of December 31, 2025 and the condensed consolidated statements of operations, comprehensive income, and stockholders’ equity for the three and six months ended December 31, 2025 and cash flows for the six months ended December 31, 2025 and 2024, are unaudited. The condensed consolidated balance sheet as of June 30, 2025 was derived from audited consolidated financial statements as of that date but does not include all the information and footnotes required by generally accepted accounting principles (GAAP) for complete financial statements. ​ Certain information and footnote disclosures, normally included in consolidated financial statements prepared in accordance with GAAP, have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures made are adequate to make the information not misleading. In our opinion, the unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of our financial position, results of operations, and cash flows for the periods presented. ​ These condensed consolidated financial statements and notes should be read in conjunction with our audited consolidated financial statements and accompanying notes for the fiscal year ended June 30, 2025, included in our Annual Report on Form 10-K. The results of our operations for the interim periods presented are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending June 30, 2026. ​ Principles of Consolidation ​ We prepared the condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and included the accounts of our wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. ​ ​ 10 Table of Contents Use of Estimates ​ The preparation of financial statements requires us to make estimates and assumptions in the condensed consolidated financial statements and accompanying notes. Actual results could differ significantly from estimates. We make estimates that we believe to be reasonable based on historical experience and other assumptions. Significant estimates and assumptions made by management include the following: ​ ● Standalone selling price (SSP) of performance obligations for contracts with multiple performance obligations; ● Estimate of variable consideration for performance obligations in connection with Topic 606; ● Period of benefit associated with capitalized costs to obtain revenue contracts; ● Valuation, measurement and recognition of current and deferred income taxes; ● Fair value of stock-based awards; ● Fair value of warrants; and ● Lease term and incremental borrowing rate for lease liabilities. ​ Recent Accounting Pronouncements ​ Pronouncements Not Yet Adopted ​ In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disaggregated disclosure of income statement expenses for public business entities. The objective of this guidance is to improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) included in each relevant expense caption. This ASU is effective for fiscal years beginning after December 15, 2026 (our fiscal year 2028), and interim reporting periods beginning after December 15, 2027, with early and retrospective adoption permitted. We are currently evaluating the impact of this update on our condensed consolidated financial statements and related disclosures. ​ Revenue Recognition Revenue Recognition Policy ​ Our revenue is comprised of two categories including SaaS and professional services. SaaS revenue includes cloud delivery arrangements, term licenses, embedded original equipment manufacturer (OEM) royalties, and associated support. An immaterial amount of SaaS revenue is comprised of our legacy revenue which is associated with license, maintenance, and support contracts on perpetual license arrangements that we no longer sell. Professional services include consulting, implementation, training, and managed services. ​ Significant Judgment Applied in the Determination of Revenue Recognition ​ We enter into contractual arrangements with customers that may include promises to transfer multiple services, such as subscription, support, and professional services. With respect to our business, a performance obligation is a promise to transfer a service to a customer that is distinct. Significant judgment is required to determine whether services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting. Additionally, significant judgment is required to determine the timing of revenue recognition. ​ We allocate the transaction price to each performance obligation based on relative SSP. The SSP is the price at which we would sell a promised service separately to one of our customers. Judgment is required to determine the SSP for each distinct performance obligation. ​ We determine the SSP by considering our pricing objectives in relation to market demand. Consideration is placed based on our history of discounting prices, size and volume of transactions involved, customer demographics and geographic locations, price lists, contract prices, and our market strategy. 11 Table of Contents ​ Determination of Revenue Recognition ​ Under Topic 606, we recognize revenue upon the transfer of control of promised services to our customers in the amount that is commensurate with the consideration that we expect to receive in exchange for those services. If consideration includes a variable amount in the arrangement, such as service level credits or contingent fees, then we include an estimate of the amount that we expect to receive for the total transaction price. The amount of revenue that we recognize is based on (i) identifying the contract with a customer; (ii) identifying the performance obligations in the contract; (iii) determining the transaction price; (iv) allocating the transaction price to the performance obligations in the contract on a relative SSP basis; and (v) recognizing revenue when, or as, we satisfy each performance obligation in the contract typically through delivery or when control is transferred to the customer. ​ SaaS Revenue ​ The following customer arrangements are recognized ratably over the contract term as the performance obligations are delivered: ● Cloud delivery arrangements; ● Maintenance and support arrangements; and ● Term licenses which incorporate on-premise software licenses and a subscription to substantial cloud functionalities. For contracts involving distinct software licenses, the license performance obligation is satisfied at a point in time when control is transferred to the customer. We typically invoice our customers in advance upon execution of the contract or subsequent renewals with payment terms generally between 30 and 45 days . Invoiced amounts are recorded in accounts receivable, deferred revenue or revenue, depending if control transferred to our customers based on each arrangement. ​ We have a royalty revenue agreement with a customer related to our embedded intellectual property. Under the terms of the agreement, the customer is to provide us a combination of fixed fee and per agent fee, for each software license sold containing the embedded software. These embedded OEM royalties are included as SaaS revenue. Under Topic 606 revenue guidance, since these arrangements are for usage-based licenses of intellectual property, for which the guidance in paragraph ASC 606-10-55-65 applies, we estimate revenue recognized only as the performance obligation of the embedded OEM royalties has been satisfied or partially satisfied. Differences between actual results and estimated amounts are adjusted in the following period as such sales are reported by the customer with a quarter in arrears. ​ Professional Services Revenue ​ Professional services revenue includes system implementation, consulting, training, and managed services. The transaction price is allocated to various performance obligations based on their SSP. Revenue allocated to each performance obligation is recognized at the earlier of satisfaction of discrete performance obligations, or as work is performed on a time and material basis. Managed services include a comprehensive set of processes and activities that range from implementation to monitoring the evolution and support of eGain solutions in a company. Our consulting and implementation service contracts are bid either on a time-and-material basis or on a fixed-fee basis. Managed services contracts are bid on a time-and-material basis. Fixed fees are generally paid upon milestone billing or customer acceptance at pre-determined points in the contract. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether transfer of control to customers has occurred. Training revenue that meets the criteria to be accounted for separately is recognized when training is provided. 12 Table of Contents Contracts with Multiple Performance Obligations ​ The Company enters into contracts that can include various combinations of subscriptions, professional services and maintenance and support, which are generally distinct and accounted for as separate performance obligations. For contracts with multiple performance obligations, the Company allocates the transaction price of the contract to each performance obligation on a relative basis using the respective SSP for each performance obligation. Costs Capitalized to Obtain Revenue Contracts, Net ​ Under Topic 606, we capitalize incremental costs of obtaining non-cancelable subscription and support revenue contracts. The capitalized amounts consist primarily of sales commissions paid to our direct sales force. Capitalized amounts also include (i) amounts paid to employees other than the direct sales force who earn incentive payouts under annual compensation plans that are tied to the value of contracts acquired and (ii) the associated payroll taxes and fringe benefit costs associated with the payments to our employees. ​ Costs capitalized related to new revenue contracts are generally deferred and amortized on a straight-line basis over a period of benefit that we estimate to be five years . We determine the period of benefit by taking into consideration the historical and expected durations of our customer contracts, the expected useful lives of our technologies, and other factors. Commissions for renewal contracts relating to our cloud-based arrangements are expensed when incurred, as we do not consider renewal contracts to be commensurate with initial customer contracts. Historically, any commission associated with renewals have been immaterial. Amortization of costs to obtain revenue contracts is included as a component of sales and marketing expenses in our condensed consolidated statements of operations. ​ During the three and six months ended December 31, 2025, we capitalized $ 200,000 and $ 297,000 of costs to obtain revenue contracts, respectively, and amortized $ 306,000 and $ 626,000 to sales and marketing expense, respectively. ​ During the three and six months ended December 31, 2024, we capitalized $ 329,000 and $ 518,000 of costs to obtain revenue contracts, respectively, and amortized $ 330,000 and $ 684,000 to sales and marketing expense, respectively. ​ Capitalized costs to obtain revenue contracts, net were $ 2.3 million and $ 2.6 million as of December 31, 2025 and June 30, 2025, respectively, on our condensed consolidated balance sheets. ​ Deferred Revenue Deferred revenue primarily consists of payments received in advance of revenue recognition from cloud, term and ratable licenses, and maintenance and support services and is recognized as the revenue recognition criteria are met. We generally invoice customers in annual or quarterly installments. The deferred revenue balance does not represent the total contract value of annual or multi-year, non-cancelable cloud or maintenance and support agreements. Deferred revenue is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing and new business linearity within the financial reporting period. ​ Segment Information We operate in one segment - the development, license, implementation, and support of our customer service infrastructure software solutions. Operating segments are identified as components of an enterprise for which discrete financial information is available and regularly reviewed by our Chief Operating Decision-Maker (CODM) in order to make decisions about resources to be allocated to the segment and assess its performance. Our CODMs under ASC 280, Segment Reporting, are our executive management team. Our CODMs review financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. The CODMs regularly evaluate non-GAAP operating income, which is defined as income from operations as presented on the condensed consolidated statements of operations and adding back stock-based compensation, along with significant revenue and expense categories aligned with those presented on our condensed consolidated statement of operations, and the accounting policies governing our segment are the same as those described in Note 1, “Summary of Business and Significant Accounting Policies.” ​ 13 Table of Contents Our revenue is derived from North America and combined Europe, Middle East, and Africa (EMEA) and is disclosed in Note 2. However, we incur operating expenses in the North America, EMEA, and Asia Pacific regions. ​ The following table presents our income (loss) from operations among our three operating regions (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ December 31, ​ December 31, ​ 2025 ​ ​ ​ 2024 ​ 2025 ​ ​ ​ 2024 Income (loss) from operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ North America $ 1,445 ​ $ 461 ​ $ 3,468 ​ $ 368 Europe, Middle East, & Africa 2,174 ​ 1,873 ​ 4,521 ​ 4,161 Asia Pacific ( 1,573 ) ​ ( 1,684 ) ​ ( 3,110 ) ​ ( 3,370 ) Income from operations $ 2,046 ​ $ 650 ​ $ 4,879 ​ $ 1,159 ​ The following table presents our long-lived assets, corresponding to our geographic areas are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ June 30, ​ ​ ​ ​ 2025 ​ ​ ​ 2025 Long-lived assets: ​ ​ ​ ​ ​ ​ North America ​ $ 524 ​ $ 390 Europe, Middle East, & Africa ​ 110 ​ 63 Asia Pacific ​ 296 ​ 217 Long-lived assets ​ $ 930 ​ $ 670 ​ For the purposes of entity-wide geographic area disclosures, long-lived assets consist of computers and equipment, furniture and fixtures, and leasehold improvements, net of accumulated depreciation and amortization. These items are included in property and equipment, net, on the accompanying Company’s condensed consolidated balance sheets. ​ Concentration of Credit Risk and Significant Customers ​ Our financial instruments that are exposed to concentrations of credit risk include cash and cash equivalents, restricted cash, and accounts receivable. We complement direct sales with resell partnerships based on product connectors into cloud contact center platforms. We also partner with system integrators and managed service providers. One customer accounted for more than 10% of total revenue during the three and six months ended December 31, 2025. One customer, who is also one of our resell partners, accounted for more than 10% of total revenue during the three and six months ended December 31, 2024. Two customers accounted for 10% or more of our accounts receivable balance, less provision for credit losses, as of December 31, 2025. Three customers accounted for 10% or more of our accounts receivable balance, less provision for credit losses, as of June 30, 2025. ​ ​ 14 Table of Contents Accounts Receivable and Provision for Credit Losses ​ We extend unsecured credit to customers on a regular basis. Our accounts receivable is derived from revenue earned from customers and are not interest bearing. We also maintain provision for credit losses to reserve for potential uncollectible trade receivables. We review our trade receivables by aging category to identify specific customers with known disputes or collectability issues. We exercise judgment when determining the adequacy of these reserves as we evaluate historical bad debt trends, general economic conditions in the U.S. and internationally, and changes in customer financial conditions. If we make different judgments or utilize different estimates, then material differences may result in additional reserves for trade receivables, which would be reflected by charges in general and administrative expenses for any period presented. We write-off receivables after all collection efforts have been exhausted and the amounts are deemed uncollectible. ​ In certain revenue contracts, contractual billings do not coincide with revenue recognized on the contract. Unbilled accounts receivables are recorded when revenue recognized on the contract exceeds billings, pursuant to contract provisions, and becomes billable upon certain criteria being met. Unbilled accounts receivables, for which the Company has the unconditional right to consideration, totaled $ 1.3 million and $ 1.4 million, as of December 31, 2025 and June 30, 2025, respectively, and are included in the accounts receivable, less provision for credit losses balance on the accompanying condensed consolidated balance sheets. ​ ​ Stock-Based Compensation ​ We account for stock-based compensation in accordance with ASC 718, Compensation—Stock Compensation . Under the fair value recognition provisions of ASC 718, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the vesting period, net of expected forfeitures. Stock-based compensation expense consists of expenses for stock options, restricted stock units (RSUs), and discounted employee common stock granted under our Amended and Restated 2005 Management Stock Option Plan, our Amended and Restated 2005 Stock Incentive Plan, and our 2017 Employee Stock Purchase Plan (ESPP). ​ The ESPP provides that eligible employees may purchase the Company’s common stock through payroll deductions at a price equal to 85 % of the lower of the fair market value at the entry date of the applicable offering period or at the end of each applicable purchasing period. The offering period, meaning a period with respect to which the right to purchase shares of our common stock may be granted under the ESPP, will not exceed twenty-seven months and consist of a series of six-month purchase periods. Eligible employees may join the ESPP at the beginning of any six-month purchase period. Under the terms of the ESPP, employees can choose to have between 1 % and 15 % of their base earnings withheld to purchase the Company’s common stock. ​ Determining the fair value of the stock-based awards at the grant date requires significant judgment and the use of estimates, particularly surrounding Black-Scholes valuation assumptions such as stock price volatility and expected option term. ​ Below is a summary of stock-based compensation included in the costs and expenses (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ December 31, ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ 2025 ​ ​ ​ 2024 Stock-based compensation expense: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cost of revenue ​ $ 133 ​ $ 232 ​ $ 228 ​ $ 462 Research and development ​ 313 ​ 74 ​ 543 ​ 251 Sales and marketing ​ 115 ​ 114 ​ 226 ​ 179 General and administrative ​ 84 ​ 202 ​ 171 ​ 362 Total stock-based compensation expense ​ $ 645 ​ $ 622 ​ $ 1,168 ​ $ 1,254 ​ 15 Table of Contents Total stock-based compensation includes expenses related to non-employee awards of $ 2,900 and $ 5,600 during the three and six months ended December 31, 2025, respectively. Total stock-based compensation includes expenses related to non-employee awards of $ 11,000 and $ 31,000 during the three and six months ended December 31, 2024, respectively. ​ Total stock-based compensation includes expenses related to the ESPP of $ 68,000 and $ 128,000 for the three and six months ended December 31, 2025, respectively. Total stock-based compensation includes expenses related to the ESPP of $ 81,000 and $ 161,000 for the three and six months ended December 31, 2024, respectively. ​ We utilize the Black-Scholes valuation model for estimating the fair value of the stock-based compensation of options granted and ESPP stock purchase rights. We estimate the fair value for stock based RSU awards based on the closing market price of grant date. All shares of our common stock issued pursuant to our stock option, RSUs, and ESPP plans are only issued out of an authorized reserve of shares of common stock which were previously registered with the SEC on Registration Statements on Form S-8. ​ During the three months ended December 31, 2025 and 2024, we granted options to purchase 103,800 and 287,067 shares of common stock with a weighted-average grant date fair value of $ 6.41 and $ 2.67 per share, respectively. ​ During the six months ended December 31, 2025 and 2024, we granted options to purchase 219,500 and 313,767 shares of common stock with a weighted-average grant date fair value of $ 4.96 and $ 2.74 per share, respectively. ​ We used the following weighted-average assumptions as inputs into the Black-Scholes valuation model to estimate the fair value of the options granted: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ December 31, ​ December 31, ​ ​ ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 Expected volatility ​ 55 % ​ 54 % ​ 53 % ​ 54 % Average risk-free interest rate ​ 3.67 % ​ 4.13 % ​ 3.74 % ​ 4.10 % Expected life (in years) ​ 4.51 ​ ​ 4.57 ​ ​ 4.52 ​ ​ 4.57 ​ Dividend yield ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ The dividend yield of zero is based on the fact that we have never paid cash dividends and have no present intention to pay cash dividends. We determined the appropriate measure of expected volatility by reviewing historic volatility in the share price of our common stock, as adjusted for certain events that management deemed to be non-recurring and non-indicative of future events. The risk-free interest rate is derived from the average U.S. Treasury Strips rate with maturities approximating the expected lives of the awards during the period, which approximate the rate in effect at the time of the grant. ​ On December 1, 2025, certain employees were granted the right to purchase an aggregate of 60,914 shares under the ESPP. Stock-based compensation expense for the three and six months ended December 31, 2025 was $ 31,000 . On December 1, 2024, certain employees were granted the right to purchase an aggregate of 103,618 shares under the ESPP. Stock-based compensation expense for the three and six months ended December 31, 2024 was $ 31,000 . ​ As of December 31, 2025, there were 519,491 shares of common stock available for issuance under the ESPP. ​ We base our estimate of expected life of a stock option on the historical exercise behavior and cancellations of all past option grants made by the Company during the time period which its equity shares have been publicly traded, the contractual term of the option, the vesting period and the expected remaining term of the outstanding options. ​ In accordance with ASU 2016-09, Compensation—Stock Compensation: Improvements to Employee Share-Based Accounting , we elected to continue to estimate forfeitures in the calculation of stock-based compensation expense. ​ As of December 31, 2025, there was approximately $ 1.2 million of total unrecognized compensation cost, net of expected forfeitures, related to unvested stock options, which is expected to be recognized over the weighted-average period of 1.53 16 Table of Contents years. There were 234,618 and 117,000 options exercised during the three months ended December 31, 2025 and 2024, respectively. There were 296,724 and 149,317 options exercised during the six months ended December 31, 2025 and 2024, respectively. ​ As of December 31, 2025, there was approximately $ 1.2 million of total unrecognized compensation cost, net of expected forfeitures, related to unvested RSUs, which is expected to be recognized over the weighted-average period of 0.87 years. There were 123,767 and 226,654 RSUs granted during the three and six months ended December 31, 2025 and 2024, with a weighted average grant date fair value of $ 13.58 and $ 5.71 per share, respectively. ​ Warrants ​ We account for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in FASB ASC Topic 480, Distinguishing Liabilities from Equity , and ASC Topic 815, Derivatives and Hedging . The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC Topic 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC Topic 815, including whether the warrants are indexed to our own common stock and whether the warrant holders require mandatory cash settlement, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance. ​ For warrants that meet all of the criteria for equity classification, the warrants are recorded as a component of additional paid-in capital at the time of issuance. The grant date fair value of the warrants were estimated using a Black Scholes valuation model. ​ Leases ​ Lease agreements are evaluated to determine whether an arrangement is or contains a lease in accordance with ASC 842, Leases . ​ Operating leases are included in operating lease right-of-use (ROU) assets, current operating lease liabilities, and noncurrent operating lease liabilities in the condensed consolidated financial statements. ROU assets represent the Company’s right to use leased assets over the agreed upon term. Lease liabilities represent the Company’s contractual obligation to make lease payments over the lease term. ​ For operating leases, ROU assets and lease liabilities are recognized at the commencement date of the lease. The lease liability is measured as the present value of the lease payments over the lease term, using the rate implicit in the lease if readily determinable. If the rate implicit in the lease cannot be readily determined, the Company uses its incremental borrowing rate at lease commencement. The operating lease ROU assets are calculated as the present value of the remaining lease payments plus unamortized initial direct costs and any prepayments, less unamortized lease incentives received. ​ Operating leases typically include non-lease components such as common-area maintenance costs. We have elected to include non-lease components with lease payments for the purpose of calculating lease ROU assets and liabilities, to the extent that they are fixed. Non-lease component payments that are not fixed are expensed as incurred as variable lease payments. ​ Lease terms may include renewal or extension options to the extent they are reasonably certain to be exercised. The assessment of whether renewal or extension options are reasonably certain to be exercised is made at lease commencement. Factors considered in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of any leasehold improvements, the value of renewal rates compared to market rates, and the presence of factors that would cause a significant economic penalty to the Company if the option were not exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company has elected not to recognize ROU assets and obligations for leases with an initial term of twelve months or less, and has applied a capitalization threshold to recognize a lease on the 17 Table of Contents condensed consolidated balance sheet. The expense associated with short-term leases and leases that do not meet the Company’s capitalization threshold are recorded to lease expense in the period it is incurred. ​ Goodwill ​ We review goodwill annually for impairment or sooner whenever events or changes in circumstances indicate that it may be impaired. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. We operate under a single reporting unit and accordingly, all of our goodwill is associated with the entire company. We had no indicators of impairment during the three and six months ended December 31, 2025. ​ ​ 2. REVENUE RECOGNITION ​ Disaggregation of Revenue The following table presents our revenue recognized over-time and at a point-in-time during the three and six months ended December 31, 2025 and 2024, respectively (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ Six Months Ended ​ ​ December 31, ​ ​ December 31, ​ 2025 ​ 2024 ​ 2025 ​ 2024 Revenue: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Over-time $ 22,040 ​ $ 20,950 ​ $ 43,885 ​ $ 40,852 Point-in-time ​ 939 ​ ​ 1,439 ​ ​ 2,602 ​ ​ 3,336 Total revenue $ 22,979 ​ $ 22,389 ​ $ 46,487 ​ $ 44,188 ​ The following table presents our revenue by geography. Revenue by geography is generally determined on the region of our contracting entity rather than the region of our customer. The relative proportion of our total revenue between each geographic region as presented in the table below was materially consistent across each of our operating regions’ revenue for the periods presented (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ December 31, ​ December 31, ​ 2025 ​ ​ ​ 2024 ​ 2025 ​ ​ ​ 2024 Revenue: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ North America $ 18,353 ​ $ 17,330 ​ $ 37,315 ​ $ 33,753 Europe, Middle East, & Africa ​ 4,626 ​ 5,059 ​ 9,172 ​ 10,435 Total revenue $ 22,979 ​ $ 22,389 ​ $ 46,487 ​ $ 44,188 Contract Balances Contract assets, if any, consist of unbilled receivables for completed performance obligations which have not been invoiced, and for which we do not have an unconditional right to consideration. Unbilled receivables are included in accounts receivable, less provision for credit losses on our condensed consolidated balance sheets. Contract liabilities consist of deferred revenue for which we have an obligation to transfer services to customers and have received consideration in advance or the amount is due from customers. Once the obligations are fulfilled, then deferred revenue is recognized to revenue in the respective period. 18 Table of Contents ​ The following table presents our contract liabilities (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ June 30, 2025 Contract liabilities: ​ ​ ​ ​ ​ ​ Deferred revenue ​ $ 42,089 ​ $ 48,765 Deferred revenue, net of current portion ​ ​ 2,358 ​ 1,766 Total deferred revenue ​ $ 44,447 ​ $ 50,531 ​ $ 13.6 million and $ 32.9 million of deferred revenue as of June 30, 2025 was recognized as revenue during the three and six months ended December 31, 2025, respectively. Remaining Performance Obligations Remaining performance obligations represent contracted revenue that has not yet been recognized, and include deferred revenue, invoices that have been issued to customers but are uncollected and not yet recognized as revenue, and amounts that will be invoiced and recognized as revenue in future periods. The transaction price allocated to the remaining performance obligation is influenced by a variety of factors, including seasonality, timing of renewals, average contract terms and foreign currency exchange rates. As of December 31, 2025, our remaining performance obligations were $ 84.9 million, of which we expect to recognize $ 53.0 million and $ 31.9 million as revenue within one year and beyond one year, respectively. ​ 3. EARNINGS PER SHARE ​ Basic earnings per share is computed using the weighted-average number of shares of common stock outstanding. In periods where net income is reported, the weighted-average number of shares is increased by stock options in the money, shares issuable for RSUs subject to service-based vesting requirements, and the warrants in the money to calculate diluted earnings per share. ​ The following table represents the calculation of basic and diluted earnings per share (unaudited; in thousands, except per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ December 31, ​ December 31, ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 Net income ​ ​ ​ $ 2,336 ​ ​ ​ $ 671 ​ $ 5,156 ​ ​ ​ $ 1,323 Per share information: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 0.09 ​ $ 0.02 ​ $ 0.19 ​ $ 0.05 Diluted ​ $ 0.08 ​ $ 0.02 ​ $ 0.19 ​ $ 0.05 Weighted-average shares used in computation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ 27,186 ​ 28,573 ​ 27,074 ​ 28,622 Effect of dilutive instruments ​ ​ 1,163 ​ ​ 486 ​ ​ 784 ​ ​ 554 Diluted ​ 28,349 ​ 29,059 ​ 27,858 ​ 29,176 ​ Weighted-average shares of stock options to purchase 279,097 and 3,361,087 shares of common stock for the three months ended December 31, 2025 and 2024, respectively, and weighted-average shares of stock options to purchase 2,319,733 and 3,415,156 shares of common stock for the six months ended December 31, 2025 and 2024, respectively, were not included in the computation of diluted earnings per share due to their anti-dilutive effect. Such securities could have a dilutive effect in future periods. ​ ​ 19 Table of Contents ​ 4. INCOME TAXES ​ Income taxes are accounted for using the asset and liability method in accordance with ASC 740, Income Taxes. Under this method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. For the legacy eGain business in the United States, based upon the weight of available evidence, which includes our historical operating performance, our future investment plans, and the uncertainty in the current market and economic environment, we have determined that it is more likely than not that we will be able to utilize the deferred tax assets and as such, do not have a valuation allowance against our net deferred tax assets except for the California net operating losses and research and development credits. For the legacy eGain business in the United Kingdom, based on the positive evidence, the Company has determined it would be able to utilize the deferred tax assets and does not have a valuation allowance against the deferred tax assets. The remaining eGain foreign operations, including its wholly-owned subsidiary Exony Limited, have historically been profitable and we believe it is more likely than not that those assets will be realized. Our tax provision primarily relates to federal, foreign, and state income taxes. Our income tax rate differs from the statutory tax rates primarily due to stock-based compensation, research and development tax credits, and our foreign operations. We account for uncertain tax positions according to the provisions of ASC 740. ASC 740 contains a two-step approach for recognizing and measuring uncertain tax positions. Tax positions are evaluated for recognition by determining if the weight of available evidence indicates that it is probable that the position will be sustained on audit, including resolution of related appeals or litigation. Tax benefits are then measured as the largest amount which is more than 50% likely of being realized upon ultimate settlement. We consider many factors when evaluating and estimating tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. ​ As of December 31, 2025, utilization of the net operating loss (NOL) or tax credit carryforwards to offset future taxable income and taxes, respectively, are subject to an annual limitation under the Internal Revenue Code of 1986 and similar state provisions, which is determined by first multiplying the value of the Company’s stock at the time of the ownership change by the applicable long-term, tax-exempt rate, and then could be subject to additional adjustments such as built in gain or built in loss, as required. Any limitation may result in expiration of all or a portion of its NOL and or tax credit carryforwards before utilization. The Company has not identified a change in ownership as of December 31, 2025 that would significantly limit the NOL carryovers. ​ 5. LEASES ​ We lease our office facilities under non-cancelable operating leases that expire on various dates through fiscal year 2033. On September 29, 2025, the Company entered into a lease agreement in Sunnyvale, California. The term of the lease expires on March 31, 2027 and requires an average monthly rent of approximately $ 21,000 for 18 months from the lease commencement date in October 2025. All of our office leases are classified as operating leases with lease expense recognized on a straight-line basis over the lease term. Lease ROU assets and liabilities are recognized on the commencement date at the present value of lease payments over the lease term. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on information available at the commencement date to determine the present value of lease payments. ​ Total operating lease costs were $ 390,000 and $ 383,000 for the three months ended December 31, 2025 and 2024, respectively. Total operating lease costs were $ 722,000 and $ 683,000 for the six months ended December 31, 2025 and 2024, respectively. ​ For the three and six months ended December 31, 2025, operating cash outflows for operating leases were $ 288,000 and $ 575,000 , respectively. For the three and six months ended December 31, 2024, operating cash outflows for operating leases were $ 322,000 and $ 596,000 , respectively. 20 Table of Contents The following tables present information about leases on our condensed consolidated balance sheets (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ June 30, ​ ​ 2025 ​ 2025 Assets: ​ ​ ​ ​ ​ ​ Operating lease right-of-use assets ​ $ 3,230 ​ $ 3,530 Liabilities: ​ ​ ​ ​ ​ ​ Operating lease liabilities ​ ​ 1,517 ​ ​ 1,220 Operating lease liabilities, net of current portion ​ ​ 1,995 ​ ​ 2,449 ​ The following table presents information about the weighted average lease term and discount rate as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ June 30, ​ ​ 2025 ​ 2025 Weighted average remaining lease term (in years) ​ ​ 4.70 ​ ​ ​ 5.14 ​ Weighted average discount rate ​ ​ 8.47 % ​ ​ 8.41 % ​ As of December 31, 2025, remaining maturities of lease liabilities are as follows (in thousands): ​ ​ ​ ​ ​ Fiscal Period: ​ ​ ​ Remaining six months of fiscal year 2026 ​ $ 769 Fiscal year 2027 ​ ​ 1,307 Fiscal year 2028 ​ 573 Fiscal year 2029 ​ 414 Fiscal year 2030 ​ ​ 296 Fiscal year 2031 ​ ​ 296 Fiscal year 2032 and thereafter ​ ​ 741 Total minimum lease payments ​ ​ 4,396 Less: Imputed interest ​ ​ ( 884 ) Total operating lease liabilities ​ ​ 3,512 Less: Current operating lease liabilities ​ ​ ( 1,517 ) Total operating lease liabilities, net of current portion ​ $ 1,995 ​ ​ ​ 6. COMMITMENTS AND CONTINGENCIES ​ Litigation ​ In the ordinary course of business, we are involved in various legal proceedings and claims related to alleged infringement of intellectual property rights, commercial, corporate and securities, labor and employment, wage and hour, and other claims that are not expected to have a material impact on our business or our condensed consolidated financial statements. We have been, and may in the future be, put on notice and/or sued by third parties for alleged infringement of their proprietary rights, including patent infringement. ​ We evaluate all claims and lawsuits with respect to their potential merits, our potential defenses and counterclaims, settlement or litigation potential and the expected effect on us. Our technologies may be subject to injunction if they are found to infringe the rights of a third-party. In addition, our agreements require us to indemnify our customers for third-party intellectual property infringement claims, which could increase the cost to us of an adverse ruling on such a claim. 21 Table of Contents ​ Warranty ​ We generally warrant that the program portion of our software will perform substantially in accordance with certain specifications for a period up to one year from the date of delivery. Our liability for a breach of this warranty is either a return of the license fee or providing a fix, patch, work-around or replacement of the software. ​ We also provide standard warranties against and indemnification for the potential infringement of third-party intellectual property rights to our customers relating to the use of our products, as well as indemnification agreements with certain officers and employees under which we may be required to indemnify such persons for liabilities arising out of their duties to us. The terms of such obligations vary. Generally, the maximum obligation is the amount permitted by law. Historically, cost related to these warranties have not been significant. However, we cannot guarantee that a warranty reserve will not become necessary in the future. ​ Indemnification ​ We have agreed to indemnify our directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by us, arising out of that person’s services as our director or officer or that person’s services provided to any other company or enterprise at our request. ​ Transfer Pricing ​ We have received transfer-pricing assessments from tax authorities with regard to transfer pricing issues for certain fiscal years, which we have appealed with the appropriate authority. We review the status of each significant matter and assess its potential financial exposure. We believe that such assessments are without merit and would not have a significant impact on our condensed consolidated financial statements. ​ Contractual Commitments ​ Our principal contractual commitments consist of obligations under leases for office space. Lease agreements are evaluated to determine whether an arrangement is or contains a lease in accordance with ASC 842, Leases . ​ 7. FAIR VALUE MEASUREMENT ​ ASC 820, Fair Value Measurement (ASC 820), defines fair value, establishes a framework for measuring fair value of assets and liabilities, and expands disclosures about fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the assets or liabilities in an orderly transaction between market participants on the measurement date. Subsequent changes in fair value of these financial assets and liabilities are recognized in earnings or other comprehensive income when they occur. ASC 820 applies whenever other statements require or permit assets or liabilities to be measured at fair value. ​ ASC 820 includes a fair value hierarchy, of which the first two are considered observable and the last unobservable, that is intended to increase the consistency and comparability in fair value measurements and related disclosures. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon their own market assumptions. ​ 22 Table of Contents The fair value hierarchy consists of the following three levels: ​ Level 1 – instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. ​ Level 2 – instrument valuations are obtained from readily-available pricing sources for comparable instruments. ​ Level 3 – instrument valuations are obtained without observable market value and require a high level of judgment to determine the fair value. ​ Our money market funds are measured at fair value on a recurring basis based on quoted market prices in active markets and are classified as level 1 within the fair value hierarchy. As of December 31, 2025 and June 30, 2025, cash equivalents classified as level 1 instruments, including money market account investments, were measured at $ 63.5 million and $ 43.0 million, respectively. ​ ​ 8. SHARE REPURCHASE PROGRAM ​ On November 14, 2022, eGain’s Board of Directors authorized a stock repurchase program under which the Company may purchase up to $20 million of its own outstanding common stock. In May 2024 and again in September 2025, the Board of Directors approved a $20 million increase in its stock repurchase program, bringing the aggregate amount eGain may purchase thereunder from $20 million to $60 million of its outstanding common stock. As of December 31, 2025, approximately $19.7 million remained available for stock repurchases pursuant to our stock repurchase program. ​ Under the stock repurchase program, we may purchase shares of common stock on a discretionary basis from time to time through open market transactions or privately negotiated transactions at prices deemed appropriate by us. In addition, at the discretion of eGain, open market repurchase of common stock may also be made under a Rule 10b5-1 plan, which would permit common stock to be repurchased when the Company might otherwise be precluded from doing so under its insider trading laws or self-imposed trading restrictions. ​ The timing and number of shares repurchased will be determined based on an evaluation of market conditions and other factors, including stock price, trading volume, general business and market conditions, and the availability of capital. On September 3, 2025, the Board of Directors also approved to extend the stock repurchase program until the earlier of (i) the date the aggregate amount of shares that can be repurchased under the stock repurchase program have been repurchased and (ii) the date the Board of Directors decides to terminate the stock repurchase program. The stock repurchase program does not obligate us to acquire a specified number of shares and may be modified, suspended, or discontinued at any time at our discretion without notice. The stock repurchase program will be funded using existing cash or future cash flows. During the three months ended December 31, 2025, there were no share repurchases. During the six months ended December 31, 2025, 230,734 shares have been repurchased for an average acquisition cost per share of $ 6.24 , totaling $ 1.4 million. We intend to reissue repurchased shares at a later date and therefore carry the shares as treasury stock, at cost. ​ 9. WARRANTS ​ On August 14, 2025, the Company issued a warrant (Warrant) to JPMC Strategic Investments I Corporation (JPMC) to acquire 500,000 shares of the Company’s common stock at an exercise price of $ 7.10 per share. The fully vested Warrant was issued without cash consideration and is exercisable through the fifth anniversary of issuance. The offer and issuance of the Warrant is expected to be exempt from registration under the Securities Act of 1933 (Securities Act), pursuant to Section 4(a)(2) of the Securities Act. JPMC has represented to the Company that it is an “accredited investor” as defined in Regulation D and that the Warrant is being acquired for investment purposes and not with a view to, or for sale in connection with, any distribution thereof. ​ The Warrant was first evaluated under ASC Topic 480, Distinguishing Liabilities from Equity , and determined that it does not meet the criteria for a liability classification. The Warrant was then evaluated under ASC 815-40, Derivatives and 23 Table of Contents Hedging—Contracts in Entity’s Own Equity , and determined to be an equity-classified instrument. Accordingly, the fair value of the warrant at grant date was recognized in additional paid-in capital within stockholders’ equity. ​ The grant-date fair value of the Warrant was estimated at $ 2.70 per warrant using the Black-Scholes valuation model with the following assumptions: expected volatility of 54 %, risk-free interest rate of 2.87 %, expected term of 5 years, and no expected dividends. No warrant expenses were recognized during the three months ended December 31, 2025. The total fair value of the Warrant was $ 1.35 million and was recognized as a non-cash general and administrative expense during the six months ended December 31, 2025. ​ No warrants were exercised or expired during the three and six months ended December 31, 2025. ​