NASDAQ: EGAN

AI Economy Demands Modern Knowledge Management

In a world selling commoditized, yet complex products to time-strapped customers, smart tools must increasingly automate self-service interactions and augment agent-assisted customer experiences. In a hybrid workplace, businesses realize that they need to invest in tools that can guide agents and customers with trusted answers, ensuring compliance. Further, AI investments are struggling to deliver value at scale because of the “Garbage In Garbage Out” problem of fragmented knowledge content across an enterprise. We believe the answer is a centralized knowledge hub, a single source of truth that is powered by AI and orchestrated by experts in the loop. Gartner expects this shift to accelerate, predicting that by 2028, 40% of large enterprises will adopt AI-powered customer service knowledge automation, up from less than 5% in 2025.

AI Knowledge for Customer Engagement

To automate customer engagement, generative AI needs trusted content from a knowledge hub that ensures correct, compliant content is served with adequate controls. A knowledge hub can be built and maintained with much less time and cost using AI. It is a perfect technology bootstrap - AI needs trusted knowledge as input and trusted knowledge can be built much easier using AI.

Contact Centers are a Brand Battleground

Contact centers offer a great opportunity within any business operation to automate using AI. According to Forrester Research, there are roughly 15 million contact center agents working globally in 2026. Time-starved customers consuming complex products and grappling with extreme choices generate stubbornly high levels of customer contact. They need quick, correct, and assured help. Gartner predicts that by 2029, agentic AI will autonomously resolve 80% of common customer service issues without human intervention, leading to a 30% reduction in operational costs.

Customer Experience Automation is a Large, Growing Market

Businesses continue to invest in digital transformation, especially in customer experience. To further reduce cost and improve experience, businesses want to harness AI knowledge to automate customer service via omnichannel, conversational interfaces. According to McKinsey, the aggregate cost of customer operations in the global economy is $1.5 trillion, and businesses could reduce this cost by 35% using AI. Gartner predicts that by 2028, over 50% of customer service organizations will double their technology spend, and in a Gartner survey published in February 2026, 91% of customer service leaders reported executive pressure to implement AI in 2026. Realizing this opportunity depends on foundations that many enterprises have not yet built. Gartner predicts that over 40% of agentic AI projects will be canceled by the end of 2027 due to escalating costs, unclear business value, or inadequate risk controls. We believe a governed, centralized knowledge foundation is what separates the AI projects that succeed from those that do not.

The eGain Approach and Benefits

What Customers Want

We believe customer service queries fall into three categories: informational, transactional, and situational. A customer contact could span one or more of these three categories as the conversation develops. Tools must orchestrate customer contact with context, accounting for machine-human hand-offs (mixed-initiative interaction), channel switching, multimodal interaction, and conversational pause-and-resume. During these interactions, customers increasingly want guidance and trusted answers.

The eGain Solution is Comprehensive

eGain offers a comprehensive solution organized into three hubs, eGain AI Agent™, eGain AI Knowledge Hub™, and eGain Conversation Hub™, to automate customer experiences. In fiscal year 2026, we extended this portfolio with eGain AI Agent 2™ with Assured Actions™, eGain Composer™, our modular AI knowledge development platform, Agentic Studio™ for multi-agent orchestration, and eGain Evaluator™ for continuous quality assurance of AI-generated answers.

eGain AI Agent helps businesses easily deploy enterprise-grade agentic solutions built on trusted knowledge and guided actions. Our AI Agent for contact center assists human agents by actively listening to customer conversations and proactively guiding them step-by-step, across intent identification, issue resolution and contact wrap up. Our AI Agent is available for leading contact center platforms, including Amazon Connect, Cisco Webex Contact Center, Genesys, Salesforce, and Zoom Contact Center.

eGain AI Knowledge Hub helps businesses to centralize knowledge, policies, procedures, situational expertise, and best-practices, while delivering guided, personalized, and trusted answers to customers, agents, and field staff. We believe our guided knowledge applications help agents handle contacts consistently regardless of tenure or expertise, and shorten the time it takes new agents to reach competence.

eGain Conversation Hub offers comprehensive, scalable capabilities for digital-first interaction management within a modern, omnichannel desktop. Human agents are proactively guided by AI knowledge to efficiently serve customers via chat, short message service (SMS), email, social media, phone, video, fax, and letter.

Open, Secure APIs and Third-Party Connectors Deliver Quick Value

Our open, secure platform APIs enable clients and partners to extend and enhance our solutions and to integrate with enterprise assets to enable a single view of the customer. Pre-built integrations include connectors to Adobe, Apple Business Chat, Atlassian Jira, Avaya, Amazon Connect, Cisco, Facebook Messenger, Five9, Google Dialogflow, Genesys, Talkdesk, IBM Watson, Microsoft Dynamics, Microsoft SharePoint, Microsoft Teams, Salesforce, SAP, ServiceNow, and Zendesk. In fiscal year 2026, we extended this architecture with connectors that support the Model Context Protocol (MCP), enabling enterprise AI platforms and development tools, including Microsoft Copilot, Anthropic Claude, and Google Gemini CLI, to retrieve governed answers from the eGain AI Knowledge Hub. We also released integrations for Microsoft Teams, Slack, and Zoom Team Chat to deliver knowledge in the flow of employee work. We offer a novel

“Bring Your Own” composable architecture to plug large language models, external bots, messaging channels, and third-party agent desktops to compose differentiated customer experiences.

Compelling Benefits

Our solution delivers quick value, easy innovation, and big business impact. Specifically, we help businesses:

o Enhance customer experience with digital-first, omnichannel service, powered by AI knowledge.

o Reduce operating costs with self-service automation, improved agent productivity and time-to-competence.

o Ensure compliance with regulations, policies, procedures, and best practices.

o Deliver insights to improve service, enhance products and design new offerings.

Competitive Strengths

Analyst-Recognized Leadership in AI Knowledge Management

In July 2026, Gartner named eGain a Leader in the Magic Quadrant for Customer Service Knowledge Management Systems, the first Magic Quadrant Gartner has published for this market, positioning eGain highest for Ability to Execute and furthest for Completeness of Vision. In the companion Critical Capabilities report, eGain received the highest product score of the eight vendors evaluated for the Compliance-Driven Service Center use case, and the second-highest score for the High-Volume Contact Center and Technical and Field Support use cases. In November 2025, Gartner rated eGain an Emerging Leader in its Emerging Market Quadrant for Generative AI Applications, published in the Innovation Guide for Generative AI Technologies. We believe this recognition reflects the depth of our knowledge management capability relative to both established application vendors and newer entrants.

Composable Platform with Rich APIs, Events, and UX Widgets

The eGain solution is a comprehensive omnichannel solution for the customer engagement market, with AI and knowledge applications at its core. We unlock the full power of our cloud platform with extensive APIs on a composable architecture, served via a developer portal to enable knowledge everywhere to power omnichannel customer and employee experiences.

Enterprise-Grade, Secure Cloud Service with Differentiated Offerings

Our cloud offering is secure, scalable, and offers unique capabilities. With respect to security and certification, we offer SOC2, PCI, HIPAA, FedRAMP, and GDPR certification. We are also approved as a supplier on Crown Commercial Service’s (CCS) G-Cloud Framework in the UK market. The Internal Revenue Service uses our solutions served from the eGain Cloud.

Transformative Value at Scale Across Diversified Customer Base

Our solution delivers transformative value at scale. We believe that our understanding of the customer need and our ability to fulfill it with enterprise-grade capability is unmatched. Our clients range from over a hundred thousand users at a healthcare client using our solution on a 24x7 basis to a Property and Casualty (P&C) insurer with fifteen thousand contact center advisors and thirty thousand field agents. Customers who have publicly announced their use of our solutions include Achmea, one of Europe's largest cooperative insurance and financial services groups, which deployed the eGain AI Knowledge Hub and eGain AI Agent to approximately 21,000 contact center and enterprise users; Cabinetworks Group; and Hackensack Meridian Health.

Market-leading Innovation with Risk-free Trial Models

To de-risk customer decisions, we offer both self-sign ups and guided pilots at no charge:

● AI Agent self-signup with free trial.

● Innovation in 30 Days™ program—a 30-day guided pilot in the eGain Cloud – at no cost and no strings attached. Businesses can experience our product with their data, content, and process in a production setting.

Direct Go-to-market Strategy, Complemented by a Growing Partner Ecosystem

We take our solutions to market through a direct sales model, primarily in North America and Western Europe. We complement direct sales with resell partnerships and with product integrations with leading contact center and CRM platform providers, including Amazon Connect, Cisco, Five9, Genesys, Salesforce, Talkdesk, and Zoom. We also partner with System Integrators and boutique consultants.

Customers

We mostly sell to large enterprises, which we define as businesses with over a billion dollars in annual revenue or government organizations. Over 89% of our total revenue for the fiscal year ended June 30, 2026 (which we refer to as fiscal year 2026) came from such large enterprises.

For fiscal year 2026, North America (NA) and combined Europe, Middle East, and Africa (EMEA) revenue accounted for 79% and 21% of total revenue.

One of our largest customers, who is also our partner, accounted for 15% of total revenue in fiscal year 2026.

In fiscal year 2026, we introduced “AI customers” as a customer-focused operating metric. We define AI customers as customers who actively utilize one or more of our AI offerings. This includes all offerings associated with a customer and not solely the AI offerings. Management believes adoption of our AI Knowledge solutions is an important indicator of customer engagement and is intended to help management evaluate customer adoptions, retention, and expansion trends.

Annual recurring revenue from our eGain AI customers was $54.3 million and $48.1 million during the fiscal years ended June 30, 2026 and 2025, respectively, which represented an increase of 13% or $6.2 million. Annual recurring revenue from our eGain AI customers represents 63% and 55% of total annual recurring revenue for the fiscal years ended June 30, 2026 and 2025, respectively.

Competition

We compete with application software providers, including NICE Ltd. and Verint Systems Inc. In the knowledge management systems market specifically, we also compete with providers of knowledge management systems, including KMS Lighthouse, Shelf, Talkdesk, Upland Software, Inc., and USU. In addition, we occasionally compete with some of our platform partners where some of our product capabilities overlap, including Five9, Genesys, Microsoft, Salesforce, and ServiceNow. We also face competition from providers of general-purpose generative AI platforms and from enterprises that elect to build knowledge and AI capabilities using internal resources.

Our target market is highly competitive and some of our competitors may have longer operating histories, greater economies of scale, greater financial resources, greater engineering and technical resources, greater sales and marketing resources, stronger strategic partnerships and distribution channels, larger user bases, products and services with different functions, and feature sets and greater brand recognition than we have. We believe the principal competitive factors in our market include the following:

o proven track record of customer success;

o speed and ease of implementation;

o quick value realization;

o rich product functionality;

o strong analyst ratings;

o strong customer references;

o financial stability and viability of the vendor;

o strong product adoption;

o ease of use and rates of user adoption;

o low total cost of ownership and demonstrable cost-effective benefits for customers;

o performance, security, scalability, flexibility and reliability of the service;

o ease of integration with existing applications;

o quality of customer support;

o availability and quality of implementation, consulting and training services; and

o vendor reputation and brand awareness.

Growth Strategy

We are investing in multiple programs to accelerate growth.

Advance Product and Platform Leadership

Innovation is in our DNA. We are investing actively in experimenting with, enhancing, and applying AI technologies to accelerate and automate tasks in the knowledge management and customer engagement lifecycle. In addition, we are expanding our platform connectivity to CRM, CCaaS, UCaaS, and CMS platforms with enhanced APIs and connectors.

Invest in Direct Sales and Marketing

We design and execute scalable and personalized marketing programs to boost brand awareness, based on client success, product leadership and no-risk trial offers. To complement our marketing investment, we have built and trained a field sales team to maintain high-touch presence in target accounts.

Develop New Partner Relationships

We are developing new partnerships with complementary platform providers (with large customer bases) to enhance their proposition with our Knowledge-powered customer engagement capabilities. At the same time, we are investing in delivery partnerships to scale our delivery capabilities.

Land and Expand in the Enterprise

With the sustained progress we have made in customer success, we see a replicable pattern emerging: land enterprise logos with a small footprint in one business unit, demonstrate business value, and then expand in the enterprise. We believe we are increasing the value of investment in eGain for our clients by deeply integrating our capabilities via our enhanced APIs with enterprise assets like enterprise collaboration platforms, CRM systems, transaction and billing, and content sources.

Selectively Pursue Acquisitions

From time to time, we pursue inorganic strategies to strengthen our product portfolio. As opportunities arise, we look for strategic acquisitions we believe will deliver compelling value faster than organic options.

Sales and Marketing

Sales Strategy

Our sales strategy is to pursue North America and Europe-based enterprises with more than five thousand employees, through a combination of direct sales and partners. These enterprises typically have thousands of customer service agents

in their contact centers. Our direct sales force is organized into teams that include sales representatives and sales consultants. Our direct sales force is complemented by sales development representatives.

Marketing and Partner Strategy

Our brand is built around three pillars: thought leadership, product leadership, and customer advocacy. We have a long track record of thought leadership in this market. Our popular “Knowledge Management for Dummies” publication, for example, enjoys thousands of digital downloads and physical distribution in our target community. The revised second edition of this pioneering work incorporates generative AI updates, including relevant AI-powered product info, customer case studies, and best-practices. In June 2026, research on enterprise knowledge loss co-authored by eGain and Deloitte was published in Deloitte Insights.

Our partners help extend the breadth and depth of our product offerings, drive market awareness, and augment our professional service capabilities. We believe these relationships are important to deliver successful integrated products and services to our customers.

SaaS Services

Our SaaS services provide customers with access to our software on a cloud-based platform that we manage and offer on a subscription basis. These SaaS services allow our customers to easily consume our product innovation without dealing with infrastructure, installation and ongoing administration. We generally offer these services through a 36-month contract, with pricing based on the number of agents or self-service sessions.

Professional Services

Our worldwide professional services organization provides consulting, implementation, training, and managed services to deliver business value, drive customer success and build customer loyalty.

o Consulting and Implementation Services. Our offering includes rapid implementation services, platform-based solution extension, and systems integration services. Our consultants work with customers to understand their requirements, analyze their business needs, and implement effective solutions. We provide these services independently or in partnership with distribution partners who have developed expertise on our platform.

o Training Services. We provide comprehensive training options to customers and partners. Training programs are offered either online (remote training) or in-person at the customer site. We also offer complementary e-learning through our eGain University education portal to our customers and partners.

o Managed Services. We provide a comprehensive set of processes and activities that range from implementation to monitoring the evolution and support of eGain solutions in a company.

Customer Support

We offer 24/7 customer support via online and phone channels worldwide under support agreements. Our customer support centers are in the United States, the United Kingdom, and India.

Research and Development

The market for our products changes rapidly and is characterized by evolving industry standards, swift changes in customer requirements, and frequent product introductions. Automation of CX with AI is an exciting, global market opportunity that is being reimagined. We are investing heavily in product innovation to seize this opportunity in enterprises looking to drive impact at scale in CX, a critical business function.

We continuously analyze market and customer requirements and evaluate external technology that we believe will enhance our competitiveness, increase our lifetime customer value, and expand our target market. Our product roadmap effectively combines build, partner, and buy options.

Intellectual Property

We regard our intellectual property as critical to our success. We rely on intellectual property and other laws, in addition to confidentiality procedures and licensing arrangements, to protect the proprietary aspects of our technology and business.

As of June 30, 2026, we had 17 issued patents in the United States, including certain patents for which petitions for reinstatement are pending following the inadvertent nonpayment of maintenance fees. Our issued U.S. patents expire at various times between 2028 and 2040.

We continually assess the strength of our intellectual property protection for those aspects of our technology that we believe constitute innovations providing significant competitive advantages. Future applications may or may not receive the issuance of valid patents or registered trademarks.

We routinely require our employees, customers, and potential business partners to enter into confidentiality and nondisclosure agreements before we disclose any sensitive aspects of our products, technology, or business plans. In addition, we require employees to agree to surrender to us any proprietary information, inventions or other intellectual property they generate or come to possess while employed by us. Despite our efforts to protect our proprietary rights through confidentiality and license agreements, unauthorized parties may attempt to copy or otherwise obtain and use our products or technology. These precautions may not prevent misappropriation or infringement of our intellectual property. In addition, some of our license agreements with certain customers and partners require us to place the source code for our products into escrow. These agreements typically provide that some party will have a limited, non-exclusive right to access and use this code as authorized by the license agreement if there is a bankruptcy proceeding instituted by or against us, or if we materially breach a contractual commitment to provide support and maintenance to the party.

Human Capital

Our key human capital management objectives are to attract, retain and develop the highest quality talent. To support these objectives, our human resources programs are designed to develop talent to prepare them for critical roles and leadership positions for the future; reward and support employees through competitive pay and benefits; enhance our culture through efforts aimed at making the workplace more engaging and inclusive; and acquire talent and facilitate internal talent mobility to create a high-performing and diverse workforce. As of June 30, 2026, we had 422 employees, including 420 full-time employees, of which 197 were in product development, 128 in services and support, 56 in sales and marketing, and 41 in finance and administration.

None of our employees are covered by collective bargaining agreements. While we believe our relations with our employees are good, our future performance depends largely upon the continued service of our key technical, sales and

marketing, and senior management personnel, none of whom are bound by employment agreements requiring service for a defined period of time.

Available Information

We were incorporated in Delaware in September 1997, and our website is located at www.egain.com. We make available free of charge on our website, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports, as soon as reasonably practicable after we electronically file or furnish such materials to the Securities and Exchange Commission at www.sec.gov. Our website and the information contained therein or connected thereto are not intended to be incorporated into this Annual Report on Form 10-K.

Information About Our Executive Officers

The following table sets forth information regarding eGain’s executive officers as of September 10, 2026:

Name

​ ​ ​

Age

​ ​ ​

Position

Ashutosh Roy

​ ​ ​

60

​ ​ ​

Chief Executive Officer and Chairman

Eric N. Smit

Chief Financial Officer

Rao J. Chandrasekhar

Senior Vice President, Products and Services

Ashutosh Roy co-founded eGain and has served as Chief Executive Officer and a Director of eGain since September 1997 and as President since October 1, 2003. From May 1995 through April 1997, Mr. Roy served as Chairman of WhoWhere? Inc., an Internet-services company co-founded by Mr. Roy. From June 1994 to April 1995, Mr. Roy worked at Parsec Technologies, a call center company based in New Delhi, India, which he co-founded. From August 1988 to August 1992, Mr. Roy worked as a software engineer at Digital Equipment Corporation, a major company in the computer industry at the time. Mr. Roy holds a B.S. in Computer Science from the Indian Institute of Technology, New Delhi, a Master’s degree in Computer Science from Johns Hopkins University and an M.B.A. from Stanford University.

Eric N. Smit has served as Chief Financial Officer since August 2002. Prior to that, Mr. Smit served in a variety of roles at eGain, including Vice President, Operations from April 2001 to July 2002, Vice President, Finance and Administration from June 1999 to April 2001, and Director of Finance from June 1998 to June 1999. From December 1996 to May 1998, Mr. Smit served as Director of Finance for WhoWhere? Inc., an Internet services company. From April 1993 to November 1996, Mr. Smit served as Vice President of Operations and Chief Financial Officer of Velocity Incorporated, a software game developer and publishing company. Mr. Smit holds a Bachelor of Commerce in Accounting from Rhodes University, South Africa.

Rao J. Chandrasekhar (also known as J.C. Rao) has served as Senior Vice President, Products and Services since September 2024. J.C. Rao joined the Company in August 1999 and has served in a variety of roles, including as Senior Vice President, Services, Support, and Operations from November 2022 to September 2024, and prior to that, other leadership roles in product management and engineering. J.C. Rao earned his Bachelor of Technology from Indian Institute of Technology Madras and M.S. from the University of Texas, Austin.