F

eGain Corporation — Earnings Quality Grade F

EGAN · Technology

Major red flags

Revenue
$88M
2025
Net Income
$32M
2025
Gross Margin
Free Cash Flow
$5M
01

Screening Summary

9
Passed
2
Watch
3
Failed
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

!
A1DSO Change

DSO increased by 10 days

A2AR vs Revenue Growth

AR outpaced revenue for 2 consecutive years

A3Revenue vs CFFO

Revenue -4.7%, CFFO -57.7%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

B2CapEx vs Revenue

Insufficient data

B3SG&A Ratio

Insufficient data

B4Gross Margin

Gross margin 70.3%, change -1.9pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 0.16. Only 16% of profit backed by cash

Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.

C2Free Cash Flow

FCF $0.0B, FCF/NI = 0.15

C3Accruals Ratio

Accruals ratio = 18.2%. Exceeds 10%

C4Cash vs Debt

Cash $0.1B covers debt $0.0B

04

Balance Sheet Health

D1Goodwill + Intangibles

No goodwill. Clean balance sheet

D2Leverage

Debt/EBITDA = 0.6x. Healthy

!
D3Soft Asset Growth

Other assets grew 1792.3% vs revenue -4.7%

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -100% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

Insufficient data

Portfolio monitoring

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05

Altman Z-Score

0.2
Distress Zone
0 Distress1.102.605.0+ Safe
0
Liquidity
0
Cumulative profit
0.03
Operating efficiency
0
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25