eGain announced its financial results for the third quarter of fiscal year 2025, ended March 31, 2025, reporting total revenue of $21.0 million. This represents a 6% decrease compared to $22.4 million in the same period of the prior fiscal year. SaaS revenue decreased by 4% year-over-year to $19.5 million, and professional services revenue decreased by 29% to $1.5 million.
Despite the revenue decline, the company's profitability exceeded expectations. GAAP net income for the quarter was $0.066 million, or $0.00 per share, down from $1.5 million, or $0.05 per share, in the prior year. Non-GAAP net income was $0.6 million, or $0.02 per share, compared to $2.0 million, or $0.06 per share, in the prior year. Net cash provided by operating activities for the nine months ended March 31, 2025, was $9.6 million.
Annual recurring revenue (ARR) from AI Knowledge Hub customers increased by 11% year-over-year. For the fourth quarter of fiscal 2025, eGain expects total revenue between $22.8 million and $23.3 million. The company raised its full fiscal year 2025 GAAP net income guidance to a range of $2.5 million to $3.0 million, or $0.09 to $0.10 per share, and non-GAAP net income guidance to $5.1 million to $5.6 million, or $0.18 to $0.20 per share.
The company also noted a significant development shortly after the quarter closed, securing one of its largest expansion deals ever with a U.S. megabank. This deal involves expanding eGain's platform to over 100,000 users across more than half of the bank, displacing homegrown solutions. This win follows prior successes within the same institution.
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