EGAIN Corp
For the period ended Sep 30, 2025. Filed Nov 12, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 12, 2025
EGAN$5.95+0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-14.
0001558370-25-007758
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-12.
0001104659-25-110385
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 110 previous paragraphs and 105 current paragraphs.
54 unchanged; 36 reworded; 13 added; 19 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 76 previous and 81 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
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.
Current report
Total revenue increased approximately $1.7 million during the three months ended September 30, 2025, compared to the same period in fiscal year 2025, due to an increase in SaaS revenue of $2.1 million; partially offset by a decrease of $371,000 in professional services.
Current report
SaaS revenue represents 93% of total revenue for the three months ended September 30, 2025, compared to 91% during the same period in fiscal year 2025. This represented an increase in SaaS revenue of 10% for the three months ended September 30, 2025, compared to the same period in fiscal year 2025.
Current report
Excluding an increase of $9,000 due to foreign exchange rate fluctuation, cost of professional services revenue decreased by $493,000 during the three months ended September 30, 2025, compared to the same period in fiscal year 2025.
Current report
Research and development expense decreased by $106,000 during the three months ended September 30, 2025, from the same period in fiscal year 2025. This decrease was primarily due to a decrease of $241,000 in personnel-related costs; partially offset by an increase of $147,000 in outside consulting costs.
Current report
Excluding a decrease of $13,000 due to foreign exchange rate fluctuation, research and development expense decreased by $93,000 during the three months ended September 30, 2025, compared to the same period in fiscal year 2025.
Current report
Sales and marketing expenses decreased by $731,000 during three months ended September 30, 2025, from the same period in fiscal year 2025. The decrease was primarily due to decreases of (i) $866,000 in personnel-related expenses and (ii) $105,000 in outside consulting expenses; partially offset by an increase of $197,000 in lead generation expenses.
Current report
Excluding an increase of $42,000 due to foreign exchange rate fluctuation, sales and marketing expense decreased by $773,000 during the three months ended September 30, 2025, compared to the same period in fiscal year 2025.
Current report
General and administrative expenses increased by $1.1 million during the three months ended September 30, 2025, from the same period in fiscal year 2025. The increase was primarily due to increases of (i) $1.4 million in warrant expense, (ii) $131,000 in legal expenses, and (iii) $20,000 in accounting, audit, and administrative expenses; partially offset by decreases of (i) $211,000 in outside-consulting expenses, (ii) $169,000 in personnel-related expenses, and (iii) $69,000 in bad debt expenses.
Current report
Excluding an increase of $5,000 due to foreign exchange rate fluctuation, general and administrative expense increased by $1.1 million during the three months ended September 30, 2025, compared to the same period in fiscal year 2025.
Current report
Income from operations was $2.8 million with an operating profit margin of 12% during the three months ended September 30, 2025. Income from operations was $509,000 with an operating profit margin of 2% during the three months ended
Current report
September 30, 2024. This is primarily driven by the increase in total revenue of $1.7 million and reduction in cost of revenue of $835,000 compared to the same period in fiscal year 2025.
Current report
Interest Income
Removed paragraphs (19)
Previous report
eGain automates customer engagement with an AI knowledge hub SaaS solution. We sell to enterprises who want to better serve customers at scale by delivering trusted answers across self-service, contact centers, and field staff. True to our mantra ofAX + BX + CX = DX™, our AI knowledge hub orchestrates effortless Digital eXperience (DX) as it assists Agent eXperience (AX), empowers Business eXperience (BX) and assures Customer eXperience (CX). Many global brands use eGain to improve experience and reduce costs. We are headquartered in Sunnyvale, California in the U.S. We also operate in the United Kingdom and India.
Previous report
Total revenue for the three months ended March 31, 2025 decreased by $1.3 million, while SaaS revenue decreased by $761,000, compared to the same period in fiscal year 2024. Total revenue for the nine months ended March 31, 2025 decreased by $5.1 million, while SaaS revenue decreased by $4.4 million, compared to the same period in fiscal year 2024.
Previous report
SaaS revenue represents 93% and 92% of total revenue for the three and nine months ended March 31, 2025, respectively, compared to 91% and 92% for the same periods in fiscal year 2024.
Previous report
Revenue from North America sales decreased by 9% from $55.2 million during the nine months ended March 31, 2024 to $50.2 million during the nine months ended March 31, 2025, due to decreases of (i) $4.2 million in SaaS revenue and (ii) $828,000 in professional services revenue.
Previous report
Revenue from EMEA sales decreased by 1% from $15.1 million for the nine months ended March 31, 2024 to $15.0 million during the nine months ended March 31, 2025, due to a decrease of $205,000 in SaaS revenue; partially offset by an increase of $98,000 in professional services revenue.
Previous report
Cost of SaaS revenue increased by $107,000 during the three months ended March 31, 2025, from the same period in fiscal year 2024. This increase was primarily due to an increase of $658,000 in cloud-computing costs; partially offset by decreases of (i) $460,000 in personnel-related costs and (ii) $67,000 in outside consulting costs.
Previous report
Excluding a decrease of $24,000 and $16,000 due to foreign exchange rate fluctuation, cost of SaaS revenue increased by $131,000 and decreased by $885,000 during the three and nine months ended March 31, 2025, respectively, from the same periods in fiscal year 2024.
Previous report
Cost of professional services increased by $284,000 during the nine months ended March 31, 2025, from the same period in fiscal year 2024. This increase was primarily due to increases of (i) $271,000 in personnel-related costs and (ii) $10,000 in outside consulting costs.
Previous report
Excluding a decrease of $10,000 due to foreign exchange rate fluctuation, cost of professional services revenue decreased by $232,000 during the three months ended March 31, 2025, compared to the same period in fiscal year 2024.
Previous report
Excluding a decrease of $3,000 due to foreign exchange rate fluctuation, cost of professional services revenue increased by $287,000 during the nine months ended March 31, 2025, compared to the same period in fiscal year 2024.
Previous report
Research and development expense increased by 13% to $7.5 million for the three months ended March 31, 2025, from $6.7 million in the same period in fiscal year 2024. Excluding a decrease of $43,000 due to foreign exchange rate fluctuation, research and development expense increased primarily due to increases of (i) $884,000 in personnel-related costs and (ii) $18,000 in outside consulting costs.
Previous report
Research and development expense increased by 14% to $22.6 million for the nine months ended March 31, 2025, from $19.9 million in the same period in fiscal year 2024. Excluding a decrease of $26,000 due to foreign exchange rate fluctuation, research and development expense increased primarily due to increases of (i) $2.5 million in personnel-related costs and (ii) $197,000 in outside consulting costs.
Previous report
Sales and marketing expenses decreased by 14% to $4.7 million for the three months ended March 31, 2025, from $5.4 million in the same period in fiscal year 2024. Excluding a decrease of $7,000 due to foreign exchange rate fluctuation, sales and marketing expense decreased primarily due to decreases of (i) $666,000 in personnel-related costs and (ii) $77,000 in lead generation costs; partially offset by an increase of $6,000 in outside consulting costs.
Previous report
Sales and marketing expenses decreased by 13% to $14.7 million for the nine months ended March 31, 2025, from $16.9 million in the same period in fiscal year 2024. Excluding an increase of $103,000 due to foreign exchange rate fluctuation, sales and marketing expense decreased primarily due to decreases of (i) $2.2 million in personnel-related costs and (ii) $191,000 in lead generation costs; partially offset by an increase of $90,000 in outside consulting costs.
Previous report
General and administrative expenses decreased by 18% to $6.6 million for the nine months ended March 31, 2025, from $8.0 million in the same period in fiscal year 2024. Excluding an increase of $10,000 due to foreign exchange rate fluctuation, general and administrative expense decreased primarily due to decreases of (i) $818,000 in legal related costs, (ii) $342,000 in personnel-related costs, (iii) $194,000 in outside-consulting costs, (iv) $66,000 in accounting, audit, and administrative fees, and (v) $35,000 in credit loss expense; partially offset by an increase of $1,000 in investor relations cost.
Previous report
Income from operations was $27,000 and $938,000 with an operating margin of 0% and 4% during the three months ended March 31, 2025 and 2024, respectively. This is primarily due to a reduction in gross margin.
Previous report
Income from operations was $1.2 million and $4.8 million with an operating margin of 2% and 7% during the nine months ended March 31, 2025 and 2024, respectively. This is primarily due to a reduction in gross margin.
Previous report
Interest Income, Net
Previous report
Provision for income taxes consists of state and foreign income taxes. As of March 31, 2025, the Company concluded that a full valuation allowance on its deferred tax assets in the U.S. continued to be appropriate considering cumulative pre-tax losses in recent years and uncertainty with respect to future taxable income. Release of the valuation allowance in the U.S. would result in a benefit to the income tax provision in the period the release is recorded, which could have a material impact on net earnings. The timing and amount of the potential valuation allowance release are subject to significant management judgment, as well as prospective earnings in the U.S.
Reworded paragraphs (36)
Previous wording
Non-GAAP operating income is defined as income from operations, adjusted for the impact of stock-based compensation expense.
Current wording
Non-GAAP operating income is defined as income from operations, adjusted for the impact of warrants and stock-based compensation expense.
Previous wording
Management believes that it is useful to exclude certain non-cash charges and non-core operational charges from non-GAAP operating income because (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations; and (ii) such expenses can vary significantly between periods as a result of the timing of new stock-based awards. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
Current wording
Management believes that it is useful to exclude certain non-cash charges and non-core operational charges from non-GAAP operating income because (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations; and (ii) such expenses can vary significantly between periods as a result of the timing of new stock-based awards. The presentation of the non-GAAP financial measures is not intended to be considered in isolation, or as a substitute for, or superior to, the financial information prepared and presented in accordance with generally accepted accounting principles in the United States of America (GAAP).
Previous wording
The following table presents a reconciliation of GAAP income from operations to non-GAAP income from operations for each of the following periods:
Current wording
The following table presents a reconciliation of GAAP income (loss) from operations to non-GAAP income from operations for each of the following periods:
Previous wording
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations discusses our condensed consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.
Current wording
Management’s Discussion and Analysis of Financial Condition and Results of Operations discusses our consolidated financial statements, which have been prepared in accordance with GAAP in the United States. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.
Previous wording
We believe that the assumptions and estimates, which are described in Note 1 “Summary of Business and Significant Accounting Policies” to our condensed consolidated financial statements, associated with revenue recognition, stock-based compensation, provision for credit losses, the valuation of goodwill, the valuation of deferred tax allowance, and legal contingencies have the greatest potential impact on our condensed consolidated financial statements. We evaluate these estimates on an ongoing basis. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making
Current wording
We believe that the assumptions and estimates, which are described in Note 1 “Summary of Business and Significant Accounting Policies” to our condensed consolidated financial statements, associated with revenue recognition, stock-based compensation, provision for credit losses, the valuation of goodwill, the valuation of deferred tax allowance, and legal contingencies have the greatest potential impact on our condensed consolidated financial statements. We evaluate these estimates on an ongoing basis. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
Previous wording
Our revenue is comprised of two categories including SaaS and professional services. SaaS revenue includes cloud delivery arrangements, term licenses, embedded 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 includes consulting, implementation, training, and managed services.
Current wording
Our revenue is comprised of two categories including SaaS and professional services. SaaS revenue includes cloud delivery arrangements, term licenses, embedded 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.
Previous wording
For our cloud delivery arrangements, our maintenance and support arrangements and our term license subscriptions that incorporate substantial cloud functionality, the combined performance obligation is recognized ratably over the contract term as the obligation is delivered. For contracts involving distinct software licenses, the license performance obligation is satisfied at a point in time when control is transferred to the customer.
Current wording
For our cloud delivery arrangements, our maintenance and support arrangements and our term license subscriptions that incorporate substantial cloud functionality, the combined performance obligation is recognized ratably over the contract
Previous wording
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 a combined fixed fee, per agent, for each software license sold containing the embedded software to us. These embedded OEM royalties are included as SaaS revenue. Under revenue guidance, since these arrangements are for sales-based licenses of intellectual property, we recognize revenue only as the subsequent sale occurs. However, since such sales are reported by the customer with a quarter in arrears, such revenue is recognized at the time it is reported and paid by the customer given that any estimated variable consideration would have to be fully constrained due to the unpredictability of such estimate and the unavoidable risk that it may lead to significant revenue reversals.
Current wording
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 a combined fixed fee, per agent, for each software license sold containing the embedded software to us. These embedded OEM royalties are included as SaaS revenue. Under revenue guidance, since these arrangements are for sales-based licenses of intellectual property, we recognize revenue only as the subsequent sale occurs. However, since such sales are reported by the customer with a quarter in arrears, such revenue is recognized at the time it is reported and paid by the customer. Any estimated variable consideration would have to be fully constrained due to the unpredictability of such estimates and the risk of significant revenue reversals.
Previous wording
Remaining performance obligations represent contracted revenue that had not yet been recognized, and include billed deferred revenue, consisting of amounts invoiced to customers whether collected or uncollected, which have not been recognized as revenue, as well as unbilled 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.
Current wording
Remaining performance obligations represent contracted revenue that have not yet been recognized, and include billed deferred revenue, consisting of amounts invoiced to customers whether collected or uncollected, which have not been recognized as revenue, as well as unbilled 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.
Previous wording
As of March 31, 2025, our remaining performance obligations were $66.5 million, of which we expect to recognize $44.3 million and $22.2 million as revenue within one year and beyond one year, respectively.
Current wording
As of September 30, 2025, our remaining performance obligations were $86.9 million, of which we expect to recognize $58.4 million and $28.5 million as revenue within one year and beyond one year, respectively.
Previous wording
We capitalize incremental costs of obtaining a non-cancelable subscription and maintenance and support revenue contract with amortization periods of one year or more. 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.
Current wording
We capitalize incremental costs of obtaining a non-cancelable subscription and maintenance and support revenue contract with amortization periods of one year or more. 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
Previous wording
The following table sets forth certain items reflected in our condensed consolidated statements of operations expressed as a percentage of total revenue for the periods indicated:
Current wording
The following table sets forth certain items reflected in our condensed consolidated statements of operations expressed as a percent of total revenue for the periods indicated:
Previous wording
We classify our revenue into two categories: SaaS and professional services revenue, with SaaS revenue being a key metric.
Current wording
We classify our revenue into two categories: SaaS and professional services revenue.
Previous wording
The following table presents our SaaS and professional services revenue during the three and nine months ended March 31, 2025 and 2024, respectively:
Current wording
The following table presents our total revenue during the three months ended September 30, 2025 and 2024, respectively:
Previous wording
Our revenue was impacted by foreign exchange rate fluctuation between the U.S. Dollar, Euro, and British Pound. We recalculate our current period results using the comparable prior period exchange rates to exclude the impact of foreign exchange rate fluctuation. Foreign exchange rate fluctuation resulted in a decrease of $33,000 and $226,000 in total revenue during the three months ended March 31, 2025 and 2024, respectively. Foreign exchange rate fluctuation resulted in an increase of $271,000 and an increase of $999,000 for the nine months ended March 31, 2025 and 2024, respectively.
Current wording
Our revenue was impacted by foreign exchange rate fluctuation between the U.S. Dollar, Euro, and British Pound. We recalculate our current period results using the comparable prior period exchange rates to exclude the impact of foreign exchange rate fluctuation. Foreign exchange rate fluctuation resulted in an increase of $195,000 and $144,000 in total revenue during the three months ended September 30, 2025 and 2024, respectively.
Previous wording
SaaS revenue includes revenue from cloud delivery arrangements, term licenses and embedded OEM royalties and associated support. Revenue from SaaS decreased by $761,000 and $4.4 million during the three and nine months ended March 31, 2025, respectively, compared to the same periods in fiscal year 2024. This represented a decrease in SaaS revenue of 4% and 7% for the three and nine months ended March 31, 2025, respectively, compared to the same periods in fiscal year 2024.
Current wording
SaaS revenue includes revenue from cloud delivery arrangements, term licenses and embedded OEM royalties and associated support. Revenue from SaaS increased by $2.1 million during the three months ended September 30, 2025, compared to the same period in fiscal year 2025. We expect our SaaS revenue to continue to increase steadily as we grow our business.
Previous wording
Excluding a decrease of $32,000 and an increase of $248,000 due to foreign exchange rate fluctuation, SaaS revenue decreased by $729,000 and $4.7 million during the three and nine months ended March 31, 2025, respectively, compared to the same periods in fiscal year 2024.
Current wording
Excluding an increase of $183,000 due to foreign exchange rate fluctuation, SaaS revenue increase by $1.9 million during the three months ended September 30, 2025, compared to the same period in fiscal year 2025.
Previous wording
Professional services revenue includes consulting, implementation, training, and managed services. Revenue from professional services decreased by $580,000 and $731,000 during the three and nine months ended March 31, 2025, respectively, compared to the same periods in fiscal year 2024.
Current wording
Professional services revenue includes consulting, implementation, training, and managed services. Revenue from professional services decreased by $371,000 during the three months ended September 30, 2025, compared to the same period in fiscal year 2025. We expect professional revenue to vary dependent on the volume and timing of recognition.
Previous wording
Excluding a decrease of $1,000 and an increase of $22,000 due to foreign exchange rate fluctuation, professional services revenue decreased by $579,000 and $753,000 during the three and nine months ended March 31, 2025, respectively, compared to the same periods in fiscal year 2024.
Current wording
Excluding an increase of $12,000 due to foreign exchange rate fluctuation, professional services revenue decreased by $383,000 during the three months ended September 30, 2025, compared to the same period in fiscal year 2025.
Previous wording
Revenue from North America sales decreased by 6% from $17.4 million during the three months ended March 31, 2024 to $16.5 million during the three months ended March 31, 2025, due to decreases of (i) $540,000 in professional services revenue and (ii) $425,000 in SaaS revenue.
Current wording
Revenue from North America sales increased by 15% from $16.4 million during the three months ended September 30, 2024 to $19.0 million during the three months ended September 30, 2025 primarily due to an increase of $2.7 million in SaaS revenue; partially offset by a decrease of $167,000 in professional services revenue.
Previous wording
Revenue from EMEA sales decreased by 8% from $4.9 million for the three months ended March 31, 2024 to $4.6 million during the three months ended March 31, 2025, due to decreases of (i) $336,000 in SaaS revenue and (ii) $40,000 in professional services revenue.
Current wording
Revenue from EMEA sales decreased by 15% from $5.4 million for the three months ended September 30, 2024 to $4.5 million during the three months ended September 30, 2025, due to decreases of (i) $626,000 in SaaS revenue and (ii) $204,000 in professional services revenue.
Previous wording
Cost of SaaS revenue consists primarily of expenses related to our cloud services and providing support to our customers. These expenses are comprised of cloud computing costs, personnel-related costs directly associated with cloud operations, and customer support, including salaries, benefits, bonuses and stock-based compensation and allocated overhead.
Current wording
Cost of SaaS revenue consists primarily of expenses related to our cloud services and support provided to customers. These expenses are comprised of cloud computing costs, personnel-related costs directly associated with cloud operations, and customer support, including salaries, benefits, bonuses and stock-based compensation and allocated overhead.
Previous wording
Cost of SaaS revenue decreased by $901,000 during the nine months ended March 31, 2025, from the same period in fiscal year 2024. This decrease was primarily due to decreases of (i) $854,000 in personnel-related costs and (ii) $199,000 in outside consulting costs; partially offset by an increase of $168,000 in cloud-computing costs.
Current wording
Cost of SaaS revenue decreased by $351,000 during the three months ended September 30, 2025, from the same period in fiscal year 2025. This decrease was primarily due to decreases of (i) $360,000 in cloud-computing costs and (ii) $94,000 in outside consulting costs; partially offset by an increase of $109,000 in personnel-related costs.
Previous wording
General and administrative expenses decreased by 17% to $2.0 million for the three months ended March 31, 2025, from $2.5 million in the same period in fiscal year 2024. Excluding a decrease of $6,000 due to foreign exchange rate fluctuation, general and administrative expense decreased primarily due to decreases of (i) $220,000 in personnel-related costs, (ii) $112,000 in credit loss expense, (iii) $39,000 in outside-consulting costs, (iv) $27,000 in legal related costs, and (v) $7,000 in accounting, audit, and administrative fees; partially offset by an increase of $1,000 in investor relations cost.
Current wording
Excluding a decrease of $6,000 due to foreign exchange rate fluctuation, cost of SaaS revenue decreased by $345,000 during the three months ended September 30, 2025, from the same period in fiscal year 2025.
Previous wording
Cost of professional services decreased by $242,000 during the three months ended March 31, 2025, from the same period in fiscal year 2024. This decrease was primarily due to decreases of (i) $229,000 in personnel-related costs and (ii) $3,000 in outside consulting costs.
Current wording
Cost of professional services decreased by $484,000 during the three months ended September 30, 2025, from the same period in fiscal year 2025. This decrease was primarily due to decreases of (i) $486,000 in personnel-related costs and (ii) $7,000 in outside consulting cost.
Previous wording
General and administrative expense primarily consists of personnel-related expenses directly associated with our finance, human resources, administrative and legal personnel. Included in these costs are salaries, benefits, bonuses, and stock-based compensation and allocated overhead. General and administrative expenses also include fees for professional services, provision for credit losses and, to a lesser extent, occupancy costs and related overhead.
Current wording
General and administrative expense primarily consists of personnel-related expenses directly associated with our finance, human resources, administrative and legal personnel. Included in these costs are salaries, benefits, bonuses, warrants, and stock-based compensation and allocated overhead. General and administrative expenses also include fees for professional services, provision for credit losses and, to a lesser extent, occupancy costs and related overhead.
Previous wording
Interest income, net primarily consists of interest earned on money market accounts which have decreased rates compared to prior years. Interest income, net was $597,000 and $1.0 million during the three months ended March 31, 2025 and 2024, respectively. Interest income, net was $2.0 million and $2.9 million during the nine months ended March 31, 2025 and 2024, respectively.
Current wording
Interest income primarily consists of interest earned on money market accounts. Interest income was $462,000 and $771,000 during the three months ended September 30, 2025 and 2024, respectively, due to lower interest rates and reduced funding in money market accounts.
Previous wording
Other income (expense), net was an expense of $304,000 and income of $74,000 during the three months ended March 31, 2025 and 2024, respectively. Other income (expense), net was expense of $875,000 and $13,000 during the nine months ended March 31, 2025 and 2024, respectively. Other income (expense), net primarily included foreign exchange rate fluctuations on international trade receivables, net of transactions.
Current wording
Other income (expense), net was income of $455,000 and expense of $140,000 during the three months ended September 30, 2025 and 2024, respectively. Other income (expense), net primarily included foreign exchange rate fluctuations on international trade receivables, net of transactions.
Previous wording
We recorded income tax provision of $254,000 and $951,000 for the three and nine months ended March 31, 2025, respectively. We recorded income tax provision of $521,000 and $1.4 million for the three and nine months ended March 31, 2024, respectively.
Current wording
Provision for income taxes consists of federal, state, and foreign income taxes. We recorded income tax provision of $930,000 and $488,000 for the three months ended September 30, 2025 and 2024, respectively. We released a majority of our valuation allowance against U.S. deferred tax assets on June 30, 2025 and recorded higher income before tax provision in the three months ended September 30, 2025.
Previous wording
As of March 31, 2025 and June 30, 2024, our principal sources of liquidity were cash and cash equivalents, restricted cash, and accounts receivable totaling $81.2 million and $101.7 million, respectively. Our cash, cash equivalents and restricted cash were $68.7 million and $70.0 million as of March 31, 2025 and June 30, 2024, respectively.
Current wording
As of September 30, 2025 and June 30, 2025, our principal sources of liquidity were cash and cash equivalents, restricted cash, and accounts receivable totaling $94.3 million and $95.7 million, respectively. Our cash, cash equivalents and restricted cash were $70.9 million and $62.9 million as of September 30, 2025 and June 30, 2025, respectively.
Previous wording
For the nine months ended March 31, 2025 and 2024, our cash flows were as follows (in thousands):
Current wording
For the three months ended September 30, 2025 and 2024, our cash flows were as follows (in thousands):
Previous wording
Cash provided by operating activities mainly consists of net income adjusted for non-cash expense items such as depreciation and amortization, expense associated with stock-based awards, the timing of employee related costs including commissions and bonus payments, and changes in operating assets and liabilities during the year.
Current wording
Cash provided by operating activities mainly consists of net income adjusted for non-cash expense items such as depreciation and amortization, expense associated with stock-based awards and warrants, the timing of employee related costs including commissions and bonus payments, and changes in operating assets and liabilities during the year.
Previous wording
Net cash provided by operating activities decreased by $8.0 million during the nine months ended March 31, 2025, from the same period in fiscal year 2024, driven primarily by the change in net income, stock-based compensation expense, and the timing of collections for accounts receivable.
Current wording
Net cash provided by operating activities increased by $9.5 million during the three months ended September 30, 2025, from the same period in fiscal year 2025, driven primarily by the non-cash expense items adjusted to net income, timing of payments of accounts payable, and recognition of deferred revenue.
Previous wording
Net cash used in investing activities increased by $203,000 during the nine months ended March 31, 2025, from the same period in fiscal year 2024, driven primarily by activities related to the purchase of equipment for new employees and facility expenditures. Historically, cash used in investing activities has been used to purchase equipment and software to support our business and growth.
Current wording
Net cash used in investing activities increased by $115,000 during the three months ended September 30, 2025, from the same period in fiscal year 2025, driven primarily by activities related to the purchase of equipment for employees and facility expenditures. Historically, cash used in investing activities has been used to purchase equipment and software to support our business and growth.
Previous wording
Net cash used in financing activities increased by $3.6 million during the nine months ended March 31, 2025, from the same period in fiscal year 2024, driven primarily by funds used for repurchases of our common stock of approximately $12.0 million, offset by proceeds from exercises of employee stock options and our employee stock purchase plan.
Current wording
Net cash used in financing activities decreased by $3.2 million during the three months ended September 30, 2025, from the same period in fiscal year 2025. Our current proceeds consist primarily of the exercise of employee stock options, our employee stock purchase plan, and funds used for repurchases of our common stock. Funds used were $1.5 million and $4.6 million during the three months ended September 30, 2025 and 2024, respectively.
Previous wording
Our principal 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. As of March 31, 2025, the future non-cancelable minimum payments under these commitments were approximately $4.9 million.
Current wording
Our principal 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. As of September 30, 2025, the future non-cancelable minimum payments under these commitments were approximately $4.3 million.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
term as the obligation is delivered. For contracts involving distinct software licenses, the license performance obligation is satisfied at a point in time when control is transferred to the customer.
Current report — wording carried from elsewhere
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.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.