EGAIN Corp

Previous wording

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 wording

eGain powers AI-driven knowledge management for the enterprise. We sell our SaaS platform to enterprises that want to deliver trusted, consumable answers to customers, employees, and AI agents — aiming to reduce cost and improve outcomes across knowledge-intensive workflow.. We are headquartered in Sunnyvale, California, USA. We also operate in the United Kingdom and India.

Previous wording

We believe total revenue is a useful measure to value our business. SaaS revenue is defined as revenue from cloud delivery arrangements, term licenses, embedded OEM royalties and associated support. Professional services revenue includes system implementation, consulting, training, and managed services.

Current wording

We believe total revenue is a useful measure to value our business. SaaS revenue is defined as revenue from cloud delivery arrangements, term licenses, embedded original equipment manufacturer (OEM) royalties and associated support. Professional services revenue includes system implementation, consulting, training, and managed services.

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 generally accepted accounting principles in the United States of America (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 this 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.

Previous 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.

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. 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

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.

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 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. As of June 30, 2025, our remaining performance obligations were $91.6 million, of which we expect to recognize $63.0 million and $28.6 million as revenue within one year and beyond one year, respectively.

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. As of June 30, 2026, our remaining performance obligations were $87.0 million, of which we expect to recognize $62.1 million and $24.9 million as revenue within one year and beyond one year, respectively.

Previous wording

Costs capitalized related to new revenue contracts are generally deferred and amortized on a straight-line basis over a period of benefit that we estimate to be five years. We determine the period of benefit by taking into consideration the period from initial contract through renewal, which constitutes the length of our customer relationship or customer life. Amortization of costs capitalized related to new revenue contracts is included as a component of sales and marketing expense in our operating results.

Current wording

Costs capitalized related to new revenue contracts are generally deferred and amortized on a straight-line basis over a period of benefit that we estimate to be five years. We determine the period of benefit by taking into consideration the period from initial contract through renewal, which constitutes the length of our customer relationship or customer life.

Previous wording

On August 16, 2022, the Inflation Reduction Act of 2022 (IRA) was signed into law and is effective for taxable years beginning after December 31, 2022. The IRA includes multiple incentives to promote clean energy with tax provisions primarily focused on implementing a 15% minimum tax on global adjusted financial statement income and a 1% excise tax on share repurchases. These measures may affect our consolidated financial statements and we will continue to evaluate the applicability and effect of the IRA as more guidance is issued. In 2024, California enacted legislation, with the first being S.B.167, which suspends the use of NOLs by businesses and individuals for tax years 2024 through 2026, limits the use of tax credits by businesses and individuals to $5 million for tax years 2024 through 2026, and clarifies that income not included in apportionable business income is excluded from the sales factor of the apportionment formula. The second, S.B.175, provides some relief from the $5 million credit limitation in S.B. 167 by allowing taxpayers subject to the limit to elect to later receive a refund of credits they would have otherwise used to reduce tax liabilities during the limitation period.

Current wording

On August 16, 2022, the Inflation Reduction Act of 2022 (IRA) was enacted and is effective for taxable years beginning after December 31, 2022. The IRA includes several clean energy incentives and significant tax provisions, including a 15% corporate alternative minimum tax based on adjusted financial statement income and a 1% excise tax on certain stock repurchases. Based on the Company's current analysis, the IRA's corporate alternative minimum tax is not expected to have a material impact on the Company's consolidated financial statements. However, the Company remains subject to the 1% excise tax on applicable share repurchases and records any related expense as incurred. The Company will continue to monitor future guidance and evaluate the impact of any changes in facts, circumstances, or interpretations of the law. In 2024, California enacted legislation, with the first being S.B.167, which suspends the use of NOLs by businesses and individuals for tax years 2024 through 2026, limits the use of tax credits by businesses and individuals to $5 million for tax years 2024 through 2026, and clarifies that income not included in apportionable business income is excluded from

Previous wording

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. This new legislation has multiple effective dates, with certain provisions becoming effective in 2025 and others implemented through 2027. We are currently assessing the impact of OBBBA on our consolidated financial statements.

Current wording

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the United States. OBBBA includes significant tax provisions, including the permanent extension of certain provisions of the Tax Cuts and Jobs Act, modifications to the international tax regime, and the restoration of favorable tax treatment for certain business expenditures. The legislation contains multiple effective dates, with certain provisions effective in 2025 and others phased in through 2027. The Company has evaluated the provisions currently in effect and continues to assess the impact of future effective provisions on its consolidated financial statements. The Company will recognize the effects of OBBBA in the periods in which the relevant provisions become effective or additional guidance is issued, as applicable.

Previous wording

Our effective tax rate for both fiscal years 2025 and 2024 was a tax benefit of $26.6 million and a tax provision of $1.9 million, respectively. The change in our effective tax rate for fiscal year 2025 as compared to fiscal year 2024 was primarily due to the decrease in valuation allowance, foreign rate differential, Section 267, stock-based compensation and the research and development tax credits.

Current wording

Our effective tax rate for both fiscal years 2026 and 2025 was a tax provision of $1.9 million and a tax benefit of $26.6 million, respectively. The change in our effective tax rate for fiscal year 2026 as compared to fiscal year 2025 was primarily due to the change in valuation allowance, federal statutory income tax rate, the research and development tax credits, and current state taxes, net of federal benefit.

Previous wording

The income before income tax benefit (provision) between the U.S. and foreign countries impacted our effective tax rate as a result of the geographic distribution and customer demand related to our products and services. In fiscal year 2025, our U.S. and foreign income before our income tax benefit was an income of $3.6 million and $2.0 million, respectively. In fiscal year 2024, our U.S. and foreign income before our income tax was an income of $6.2 million and $3.5 million, respectively.

Current wording

The income before income tax (provision) benefit between the U.S. and foreign countries impacted our effective tax rate as a result of the geographic distribution and customer demand related to our products and services. In fiscal year 2026, our U.S. and foreign income before our income tax (provision) benefit was $7.6 million and $3.2 million, respectively. In fiscal year 2025, our U.S. and foreign income before our income tax was $3.6 million and $2.0 million, respectively.

Previous wording

When we prepare our consolidated financial statements, we estimate our income tax liability for each of the various jurisdictions where we conduct business. This requires us to estimate our actual current tax exposure and to assess temporary differences that result from differing treatment of certain items for tax and accounting purposes. The net deferred tax assets are reduced by a valuation allowance if, based upon weighted available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. We make significant judgments to determine our provision for income taxes, our deferred tax assets and liabilities and any valuation allowance to be recorded against our net deferred tax assets. In the year ended June 30, 2025, we concluded that the valuation allowance related to the U.S. federal and state (excluding certain California tax attributes) deferred tax assets was no longer required due to the assessment of our recent income/loss and forecast future taxable income. As of June 30, 2025, we had a valuation allowance of approximately $5.5 million attributable to California net operating losses and research and development credit carryforwards.

Current wording

When we prepare our consolidated financial statements, we estimate our income tax liability for each of the various jurisdictions where we conduct business. This requires us to estimate our actual current tax exposure and to assess temporary differences that result from differing treatment of certain items for tax and accounting purposes. The net deferred tax assets are reduced by a valuation allowance if, based upon weighted available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. We make significant judgments to determine our provision for income taxes, our deferred tax assets and liabilities and any valuation allowance to be recorded against our net deferred tax assets. In the fiscal year ended June 30, 2025, we concluded that the valuation allowance related to the U.S. federal and state (excluding certain California tax attributes) deferred tax assets was no longer required due to the assessment of our recent income/loss and forecast future taxable income. As of June 30, 2026, we had a valuation allowance of approximately $6.2 million attributable to California net operating losses and research and development credit carryforwards.

Previous wording

We consider the earnings of certain non-U.S. subsidiaries to be indefinitely invested outside the United States, on the basis of estimates, that future domestic cash generation will be sufficient to meet future domestic cash needs and our specific plans for reinvestments of those subsidiary earnings. We have not recorded a deferred tax liability related to state income taxes and foreign withholding taxes of approximately $28.2 million of undistributed earnings of foreign subsidiaries indefinitely invested outside the United States. If we decide to repatriate the foreign earnings, we would need to adjust our income tax provision in the period we determined that the earnings will no longer be indefinitely invested outside the United States.

Current wording

We consider the earnings of certain non-U.S. subsidiaries to be indefinitely invested outside the United States, on the basis of estimates, that future domestic cash generation will be sufficient to meet future domestic cash needs and our specific plans for reinvestments of those subsidiary earnings. We have not provided for taxes of approximately $30.3 million of undistributed earnings of foreign subsidiaries indefinitely invested outside the United States. If we decide to repatriate the foreign earnings, we would need to adjust our income tax provision in the period we determined that the earnings will no longer be indefinitely invested outside the United States.

Previous wording

Total revenue decreased $4.4 million during the fiscal year ended June 30, 2025, from the same period in fiscal year 2024, largely due to decreased SaaS revenue of $3.2 million and decreased professional services revenue of $1.2 million in fiscal year 2025.

Current wording

Total revenue increased $2.7 million during the fiscal year ended June 30, 2026, from the same period in fiscal year 2025, largely due to increased SaaS revenue of $3.4 million and offset with a decrease in professional services revenue of $660,000 in fiscal year 2026.

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 an increase of $546,000 and $1.0 million in total revenue during the fiscal years ended June 30, 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 $741,000 and $546,000 in total revenue during the fiscal years ended June 30, 2026 and 2025, respectively.

Previous wording

SaaS revenue includes revenue from cloud delivery arrangements, term licenses and embedded OEM royalties and associated support. Revenues from SaaS decreased by $3.2 million during the fiscal year ended June 30, 2025, from the same period 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 $3.4 million during the fiscal year ended June 30, 2026, from the same period in fiscal year 2025.

Previous wording

SaaS revenue was $81.9 million and $85.1 million during the fiscal years ended June 30, 2025 and 2024, respectively, which represented a decrease of 4% or $3.2 million. SaaS revenue represents 93% and 92% of total revenue for the fiscal years ended June 30, 2025 and 2024, respectively.

Current wording

SaaS revenue was $85.3 million and $81.9 million during the fiscal years ended June 30, 2026 and 2025, respectively, which represented an increase of 4% or $3.4 million. SaaS revenue represents 94% and 93% of total revenue for the fiscal years ended June 30, 2026 and 2025, respectively.

Previous wording

Excluding an increase of $510,000 due to foreign exchange rate fluctuation, SaaS revenue decreased by $3.7 million during the fiscal year ended June 30, 2025, from the same period in fiscal year 2024.

Current wording

Excluding an increase of $702,000 due to foreign exchange rate fluctuation, SaaS revenue increased by $2.7 million during the fiscal year ended June 30, 2026, from the same period in fiscal year 2025.

Previous wording

Professional services revenue includes consulting, implementation, training, and managed services. Revenues from professional services decreased by $1.2 million during the fiscal year ended June 30, 2025, from the same period in fiscal year 2024.

Current wording

Professional services revenue includes consulting, implementation, training, and managed services. Revenues from professional services decreased by $660,000 during the fiscal year ended June 30, 2026, from the same period in fiscal year 2025.

Previous wording

Professional services revenue was $6.5 million and $7.7 million during the fiscal years ended June 30, 2025 and 2024, respectively, which represented a decrease of 16% or $1.2 million. Professional services revenue represents 7% and 8% of total revenue for the fiscal years ended June 30, 2025 and 2024, respectively.

Current wording

Professional services revenue was $5.9 million and $6.5 million during the fiscal years ended June 30, 2026 and 2025, respectively, which represented a decrease of 10% or $660,000. Professional services revenue represents 6% and 7% of total revenue for the fiscal years ended June 30, 2026 and 2025, respectively.

Previous wording

Excluding an increase of $36,000 due to foreign exchange rate fluctuation, professional services revenues decreased by $1.2 million during the fiscal year ended June 30, 2025, from the same period in fiscal year 2024.

Current wording

Excluding an increase of $40,000 due to foreign exchange rate fluctuation, professional services revenue decreased by $700,000 during the fiscal year ended June 30, 2026, from the same period in fiscal year 2025. We expect professional services revenue to vary depending on the volume of projects and timing of recognition.

Previous wording

Revenue from North America sales decreased by 5% from $72.6 million during the fiscal year ended June 30, 2024 to $68.8 million during the fiscal year ended June 30, 2025 due to decreases of (i) $2.6 million in SaaS revenue and (ii) $1.2 million in professional service revenue.

Current wording

Revenue from North America sales increased by 5% from $68.8 million during the fiscal year ended June 30, 2025 to $72.3 million during the fiscal year ended June 30, 2026 due to an increase of $4.8 million in SaaS revenue; partially offset by a decrease of $1.2 million in professional service revenue.

Previous wording

Revenue from EMEA sales decreased by 3% from $20.2 million during the fiscal year ended June 30, 2024 to $19.7 million during the fiscal year ended June 30, 2025 due to a decrease of $570,000 in SaaS revenue; partially offset by an increase of $32,000 in professional services revenue.

Current wording

Revenue from EMEA sales decreased by 4% from $19.7 million during the fiscal year ended June 30, 2025 to $18.8 million during the fiscal year ended June 30, 2026 due to a decrease of $1.4 million in SaaS revenue; partially offset by an increase of $553,000 in professional services revenue.

Previous wording

Cost of SaaS revenues consist 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.

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

Excluding an increase of $17,000 due to foreign exchange rate fluctuation, cost of professional services revenue increased by $353,000 for the fiscal year ended June 30, 2025, from the same period in fiscal year 2024.

Current wording

Excluding an increase of $27,000 due to foreign exchange rate fluctuation, cost of professional services revenue decreased by $1.9 million for the fiscal year ended June 30, 2026, from the same period in fiscal year 2025.

Previous wording

Research and development expense primarily consists of personnel-related expenses directly associated with our engineering, product management and development, and quality assurance staff. Included in these costs are salaries,

Current wording

Research and development expense primarily consists of personnel-related expenses directly associated with our engineering, product management and development, and quality assurance staff. Included in these costs are salaries, benefits, bonuses, stock-based compensation, and allocated overhead. Research and development expense also includes outside consulting services contracted for research and development.

Previous wording

Excluding a decrease of $5,000 due to foreign exchange rate fluctuation, research and development expense increased by $3.0 million for the fiscal year ended June 30, 2025, from the same period in fiscal year 2024.

Current wording

Excluding a decrease of $85,000 due to foreign exchange rate fluctuation, research and development expense decreased by $70,000 for the fiscal year ended June 30, 2026, from the same period in fiscal year 2025.

Previous wording

Sales and marketing expense primarily consists of personnel-related expenses directly associated with our sales, marketing, and business development staff. Included in these costs are salaries, benefits, bonuses, and stock-based compensation and allocated overhead. Sales and marketing expenses also include amortization of commissions paid to our sales staff, lead generation activities, advertising, trade show and other promotional costs and, to a lesser extent, occupancy costs and related overhead.

Current wording

Sales and marketing expense primarily consists of personnel-related expenses directly associated with our sales, marketing, and business development staff. Included in these costs are salaries, benefits, bonuses, stock-based compensation, and allocated overhead. Sales and marketing expenses also include amortization of commissions paid to our sales staff, lead generation activities, advertising, trade show and other promotional costs and, to a lesser extent, occupancy costs and related overhead.

Previous wording

Sales and marketing expenses decreased by $2.8 million or 12% during the fiscal year ended June 30, 2025 from the same period in fiscal year 2024. The decrease is primarily due to a decrease of $3.4 million in personnel-related costs; partially offset by increases of (i) $273,000 in lead generation costs and (ii) $145,000 in outside consulting costs.

Current wording

Sales and marketing expenses increased by $120,000 or 1% during the fiscal year ended June 30, 2026 from the same period in fiscal year 2025. This was primarily due to increases of (i) $162,000 in personnel-related costs and (ii) $57,000 in lead generation costs; partially offset by a decrease of $257,000 in outside consulting costs.

Previous wording

Excluding an increase of $205,000 due to foreign exchange rate fluctuation, sales and marketing expense decreased $3.0 million for the fiscal year ended June 30, 2025, from the same period in fiscal year 2024.

Current wording

Excluding an increase of $158,000 due to foreign exchange rate fluctuation, sales and marketing expense decreased by $38,000 for the fiscal year ended June 30, 2026, from the same period in fiscal year 2025.

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, stock-based compensation, and allocated overhead. General and administrative expenses also include fees for professional services, warrants, provision for credit losses and, to a lesser extent, occupancy costs and related overhead.

Previous wording

Excluding an increase of $39,000 due to foreign exchange rate fluctuation, general and administrative expense increased $1.9 million for the fiscal year ended June 30, 2025, from the same period in fiscal year 2024.

Current wording

Excluding an increase of $22,000 due to foreign exchange rate fluctuation, general and administrative expense increased by $1.3 million for the fiscal year ended June 30, 2026, from the same period in fiscal year 2025.

Previous wording

Stock-based compensation expense includes the amortization of the fair value primarily of stock options awarded to employees, members of our board of directors and consultants. The fair value of stock options granted is recognized as an expense over their respectable vesting schedule. The decrease in our stock-based compensation expense in fiscal year 2025 compared to fiscal year 2024 was primarily due to decreases in stock option vesting over their respectable periods, company-wide headcount, and equity grant activity.

Current wording

Stock-based compensation expense includes the amortization of the fair value primarily of stock options awarded to employees, members of our board of directors and consultants. The fair value of stock options granted is recognized as an expense over their respective vesting schedule. The increase in our stock-based compensation expense in fiscal year 2026 compared to fiscal year 2025 was primarily due to increases in stock option vesting over their respective periods, company-wide headcount, and equity grant activity.

Previous wording

Interest income consists primarily of interest earned on money market accounts, which have decreased in rates compared to prior year. Interest income, was income of $2.5 million and $3.8 million for the fiscal years ended June 30, 2025 and 2024, respectively.

Current wording

Interest income, net primarily consists of interest earned on money market accounts. Interest income, was income of $2.3 million and $2.5 million for the fiscal years ended June 30, 2026 and 2025, respectively.

Previous wording

Other expense, net primarily included foreign exchange rate fluctuations on international trade receivables. Other expense, net was $1.3 million and $51,000 for the fiscal years ended June 30, 2025 and 2024, respectively.

Current wording

Other income (expense), net primarily included foreign exchange rate fluctuations on international trade receivables. Other income (expense), net was income of $581,000 and expense of $1.3 million for the fiscal years ended June 30, 2026 and 2025, respectively.

Previous wording

Provision for income taxes consists of federal, state and foreign income taxes and the release of a substantial portion of our valuation allowance against U.S. deferred tax assets as of June 30, 2025. We consider all available evidence, both positive and negative, including but not limited to earnings history, expiring attributes, projected future outcomes, industry and market trends and the nature of each of the deferred tax assets. We recorded an income tax benefit of $26.6 million and provision of $1.9 million in the fiscal years ended June 30, 2025 and 2024, respectively.

Current wording

Income tax (provision) benefit consists of federal, state and foreign income as of June 30, 2026. We consider all available evidence, both positive and negative, including but not limited to earnings history, expiring attributes, projected future outcomes, industry and market trends and the nature of each of the deferred tax assets. We recorded an income tax provision of $1.9 million and benefit of $26.6 million in the fiscal years ended June 30, 2026 and 2025, respectively.

Previous wording

Our principal sources of liquidity were cash and cash equivalents, and accounts receivable, net. Our liquidity sources were $95.7 million compared to $101.7 million as of June 30, 2025 and 2024, respectively. Our cash, cash equivalents, and restricted cash were $62.9 million and $70.0 million as of June 30, 2025 and 2024, respectively.

Current wording

Our principal sources of liquidity were cash and cash equivalents, restricted cash, and accounts receivable. Our liquidity sources were $97.7 million compared to $95.7 million as of June 30, 2026 and 2025, respectively. Our cash, cash equivalents, and restricted cash were $73.3 million and $62.9 million as of June 30, 2026 and 2025, respectively.

Previous wording

Our working capital was $38.4 million and $44.5 million as of June 30, 2025 and 2024, respectively. Our deferred revenue was $50.5 million and $49.3 million as of June 30, 2025 and 2024, respectively.

Current wording

Our working capital was $42.9 million and $38.4 million as of June 30, 2026 and 2025, respectively. Our deferred revenue was $48.5 million and $50.5 million as of June 30, 2026 and 2025, respectively.

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 costs capitalized to obtain revenue contracts, amortization of right-of-use assets, 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 costs capitalized to obtain revenue contracts, amortization of right-of-use assets, and changes in operating assets and liabilities during the year.