eGain Corporation

Good day and welcome to the eGain Festival 2026 Second Quarter Financial Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Jim Byers with Pondell Wilkinson Investor Relations. Please go ahead.

Jim Byers Thank you, operator, and good afternoon, everyone. Welcome to EGAIN's fiscal 2026 second quarter financial results conference call. On the call today are EGAIN's chief executive officer, Ashu Roy, and chief financial officer, Eric Smith. Before we begin, I would like to remind everyone that during this conference call, management will make certain forward-looking statements which convey management's expectations, beliefs, plans, and objectives regarding future financial and operational performance. Forward-looking statements are generally preceded by words such as believe, plan, intend, expect, anticipate, or similar expressions. Forward-looking statements are protected by safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a wide range of risks and uncertainties that could cause actual results to differ in material respects. Information on various factors that could affect eGAIN's results are detailed in the company's reports filed with the Securities and Exchange Commission. eGAIN is making these statements as of today, February 3rd, 2026, and assumes no obligation to publicly update or revise any of the forward-looking information in this conference call. In addition to GAAP results, we will also discuss certain non-GAAP financial measures such as non-GAAP operating income. The financial tables included with the earnings press release include reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP financial measures. eGain's earnings press release can be found by clicking the press releases link on the investor relations page of the eGain website at eGain.com. And along with the earnings release, we'll post an updated investor presentation to the investor relations page of eGain's website. And lastly, a phone replay of this conference call will be available for one week. And now with that said, I'd like to turn the call over to eGain's CEO, Ashu Roy.

Thank you, Jim. And good afternoon, everyone. We saw good business momentum in our second quarter. Both revenue and profitability exceeded our guidance and street consensus, and we delivered strong operating cash flow. We also drove strong bookings in the quarter, including multiple global 1,000 logos and healthy expansions. Our AI knowledge hub momentum continues to grow, with ARR from these customers up 27% year over year, And our total AI knowledge ARR now representing 64% of our total SAS ARR. Finally, we saw more than 50% year-over-year increase in top of the funnel AI knowledge leads. So that's encouraging. Turning to business highlights, we saw a couple of trends worth calling out. 25% of our new logos in the first half of fiscal 26 were sourced by partners. This is more than a doubling of our partner sourced new logos year over year. Our partner momentum is building nicely. We also saw enterprise buying bundled alongside the CX deals in a majority of cases in this quarter. This convergence of customer service and contact center buying and enterprise use case-oriented buying is accelerated by what we see as corporate AI teams and their interest in knowledge. This is a development that validates our point of view, that a centralized, trusted knowledge foundation is necessary for AI ROI upscale. Now, let me share some booking highlights for the quarter, starting with new lovers. First, we won the enterprise knowledge mandate for one of the largest business software providers in the world. Our knowledge platform will be deployed across over 100,000 users and multiple use cases across CX, employee experience, and AI experience, which now is, as we know, a huge thing. This win also presents us the opportunity to partner with this client to potentially offer our knowledge solution to their global clients. Very exciting for us. Another one worth calling out is a large US-based manufacturer of kitchen cabinets with over 15 brands and 6,000 employees. This company's product and policy knowledge was scattered all over, and it was making it very hard for their service teams to access accurate current answers for long-tail products. As you know, cabinets last for a long time, and service questions can be for products you sold 15 years ago. They selected our AI Knowledge Hub to centralize all the knowledge, drive consistency, and automate the future AI initiatives. We also signed a couple of new insurance logos during the quarter, including ACMEA. This is one of Europe's largest insurance and financial services groups based in Netherlands. They serve more than 10 billion customers. ACMEA has been driving a strategic shift toward becoming a digital insurer, with customer experience and self-service adoption as their core priorities. They recognized the need for a knowledge-as-a-service partner, and they selected us to accelerate their digital insurance journey. Our platform now will power 21,000 users across ACMEA, including customer service and contact center use cases, but not just customer service. We're also seeing good momentum with credit unions. One of them that I want to call out is Oregon Community Credit Union. They serve over 250,000 members in Oregon, Idaho, and Washington. They recognize the need to modernize their knowledge system, and they selected us, again, for our open architecture and AI capabilities. Yet again, in this case, eGain will be used to support all enterprise use cases, including contact center use cases where we are integrated and connected into the GenSys CCaaS platform. So this convergence that we see of starting with customer service and contact center but then The knowledge platform being used for all enterprise use cases is a welcome one for us because we believe that while CX is the most compelling ROI proposition for knowledge, knowledge is not limited in terms of its value within customer experience use cases alone. And so applying what works in CX across the entire enterprise provides enormous benefit to businesses that are looking to accelerate their AI ambition. In terms of thought leadership, we more than ever believe that the market is aligning with our view that a trusted knowledge foundation accelerates enterprise AI ROI. This quarter, as I mentioned earlier, We saw more than 50% year-over-year increase in top-of-the-funnel marketing leads and a 23% increase in pure inbound interest year-over-year. Turning to partnerships, which is a key area for us beyond our direct go-to-market motions. Our expanding efforts in partner development are bearing fruit. Partner-sourced leads in the first half of fiscal 26 increased 80% year-over-year, On the product front, as we have mentioned before, we announced our developer-focused offering, the eGain Composer, in October at our customer event in Chicago. eGain Composer now is helping us drive more product sales of the AI Knowledge Hub and attract new ecosystem partners. We are seeing growing engagement from developers both from ai groups within enterprises as well as smaller partners who are building bespoke ai solutions for their clients which are enterprises as you know composer offers modular capabilities on our composable platform to easily build trusted solutions using our knowledge hub while it's early days We see continued and growing interest from smaller partners as well who want to use Composer to build differentiated capabilities in their own go-to-market offerings. As we execute more go-to-market programs around Composer, we intend to expand awareness amongst AI stakeholders, increase engagement, and generate early conversations across diverse use cases beyond customer experience and customer services. I'm also excited about the fact that eGain was once again noted in the right top quadrant, the leader quadrant, in the Gartner Emerging and Q4 Generative AI Knowledge Apps. We were also, late last year, named KM World's Reader's Choice Award winner, and this came back in November of 2025. To conclude, we are recruiting well on our go-to-market strategies. We're seeing growing brand awareness as evidenced by increasing inbound interest in our products. We are seeing increased opportunities both in our go-to-market awareness and direct marketing activities as well as partner activities. We're seeing our product-led growth strategy delivering tangible results. And lastly, we see the market converging centered around CX and customer service, but extending beyond that to cover the entire enterprise for a centralized knowledge foundation that businesses are looking to create, which will then give them the right capability to springboard off for their AI initiatives. With that, I'll hand it over to Eric Schmidt, our CFO, to provide more detail on the financials. Eric?