Forensic Analysis · Technology / Software · as of Sep 4, 2026
Egain Corp (EGAN)
A forensic read on Egain Corp built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-3.3
Distress distance
Watch
Earnings quality
4
Forensic signals
40.0%
ROE
-4.7%
Revenue growth
The financial-health reading above compares this company's equity at BOOK value, not at what the market currently pays for it — this free snapshot doesn't pull live market data. Treat it as a rough read, not the final word.
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Egain Corp earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads -3.2, placing it in the Distress zone (based on book value, not market value, since this free snapshot doesn't pull live market data — treat this zone as a rough read, not the final word). 4 forensic signals were flagged in its latest SEC filings, led by cash conversion.
What the filings flag
0.53×
FY2023–FY2025
Cash conversion.Over FY2023–FY2025, cumulative operating cash flow was 0.53× cumulative net income. Reported profit is not turning into cash. The shortfall is profit tied up in working capital rather than collected — the accrual and receivables lines below show where.
336% of FCF
FY2025
Shareholder returns.Returned $16M to shareholders (buybacks + dividends) in FY2025 — 336% of free cash flow. More than free cash flow generated — and beyond operating cash too, so the extra is coming from debt or cash reserves, which isn't sustainable indefinitely. Counting the $2M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 388%.
n/m (sign flip)
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets flipped from negative to positive FY2024→FY2025 (FY2024 $-11.5M to FY2025 $+17.8M) — the standard accruals ratio divides by the average of the two, which collapses toward zero right as the sign changes, so the resulting percentage is a denominator artifact, not a real accrual measurement. Treat this as a structural balance-sheet shift to understand on its own terms rather than a clean or dirty accruals read.
133d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 124 to 133 days FY2024→FY2025 (receivables +3% vs revenue -5%). Receivables are creeping up relative to sales. Only 53¢ of operating cash arrived for every dollar of profit reported over FY2023–FY2025 ($22.3M against $42.1M), and the receivables balance is one of the places the rest is sitting. Across FY2021–FY2025 the day count ran 114 → 106 → 109 → 124 → 133 days — the latest step continues a climb that was already under way, which is the persistence that separates a collection problem from a busy quarter. Deferred revenue was roughly flat (+6%) over the same period, which doesn't corroborate a benign upfront-billing explanation for the receivables build.
Key fundamentals
Latest Revenue$88.4M
Revenue Growth YoY-4.7%
Revenue CAGR (3yr)-1.3%
Net Margin36.5%
Free Cash Flow$4.7M
Return on Equity40.0%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Egain Corp's actual 10-K/10-Q/8-K filings?