Enghouse Releases Second Quarter Results
Canada NewsWire
MARKHAM, ON, June 9, 2026
MARKHAM, ON, June 9, 2026 /CNW/ - Enghouse Systems Limited (TSX: ENGH) announces second quarter (unaudited) financial results for the period ended April 30, 2026. All figures are denominated in Canadian dollars unless otherwise indicated.
Second Quarter Financial Highlights:
- Revenue was $114.3 million as compared to $124.8 million in Q2 2025 and for the six-month period was $234.4 million compared to $248.8 million last year;
- Recurring revenue, which includes SaaS and maintenance services, was $79.2 million compared to $86.2 million in Q2 2025, and represents 69.3% of total revenue. For the six-month period, recurring revenue was $163.7 million compared to $174.1 million in the prior period, and represents 69.9% of total revenue;
- Results from operating activities was $23.6 million compared to $25.1 million in Q2 2025 and decreased for the six-month period to $51.9 million from $56.1 million in the comparable period;
- Net income increased to $16.3 million compared to $13.5 million in Q2 2025. For the six-month period, net income was $33.8 million compared to $35.4 million in the prior period;
- Adjusted EBITDA was $26.5 million compared to $28.6 million in Q2 2025, while achieving a 23.2% margin. For the six-month period, Adjusted EBITDA was $57.6 million compared to $61.7 million in the prior year;
- Net cash provided by operating activities, excluding changes in working capital and income taxes paid, increased to $28.7 million compared to $25.5 million in Q2 2025 and was $60.1 million for the six-month period compared to $63.3 million last year. Cash, cash equivalents and short-term investments were $269.7 million as at April 30, 2026.
The second quarter reflected ongoing turbulence in global markets, where shifting geopolitical conditions, trade dynamics, and rapid technological change continued to drive uncertainty and dramatic responses. Through this environment, the Company remained patient and disciplined, scaling its operations to current market conditions, maintaining profitability and strong cash reserves, while investing in innovation and long-term growth initiatives.
The Asset Management Group reported stable revenue trends, though influenced by the timing of one-time transactions, while the Interactive Management Group experienced churn, including that expected from prior acquisitions as well as from customers migrating toward SaaS-based offerings.
During the quarter, profitability remained a key focus, with continued efforts to calibrate costs to prevailing revenue. Operating efficiencies and disciplined expense management contributed to a 13.5% improvement in operating expenses relative to the same period in the prior year. These actions supported continued positive earnings results and are expected to yield further benefits as they fully annualize, reinforcing the Company's ability to maintain profitability in a dynamic operating environment. The Company reported net income of $16.3 million in the quarter compared to $13.5 million in the prior year.
Enghouse closed the quarter with $269.7 million in cash, cash equivalents, and short-term investments, and no external debt. This robust financial capacity provides flexibility to invest in further operational efficiencies, accretive acquisitions and product innovation, including AI-driven enhancements. Given its diversified business model, significant recurring revenue base, and strong liquidity, the Company is well positioned to navigate ongoing uncertainty while continuing to deliver sustainable, long-term shareholder value through its disciplined capital allocation strategy.
Quarterly dividends:
Today, the Board of Directors approved an eligible quarterly dividend of $0.31 per common share, payable on August 28, 2026, to shareholders of record at the close of business on August 14, 2026.
Enghouse Systems Limited
Financial Highlights
(unaudited, in thousands of Canadian dollars)
For the periods ended April 30 | Three months | Six months | |||||||||||
2026 | 2025 | Var ($) | Var (%) | 2026 | 2025 | Var ($) | Var (%) | ||||||
Revenue | $ | 114,277 | $ | 124,819 | (10,542) | (8.4) | $ | 234,375 | $ | 248,819 | (14,444) | (5.8) | |
Direct costs | 44,178 | 45,985 | (1,807) | (3.9) | 88,805 | 90,448 | (1,643) | (1.8) | |||||
Revenue, net of direct costs | $ | 70,099 | $ | 78,834 | (8,735) | (11.1) | $ | 145,570 | $ | 158,371 | (12,801) | (8.1) | |
As a % of revenue | 61.3 % | 63.2 % | 62.1 % | 63.6 % | |||||||||
Operating expenses | 45,443 | 52,345 | (6,902) | (13.2) | 91,833 | 100,802 | (8,969) | (8.9) | |||||
Special charges | 1,027 | 1,401 | (374) | (26.7) | 1,837 | 1,492 | 345 | 23.1 | |||||
Results from operating activities | $ | 23,629 | $ | 25,088 | (1,459) | (5.8) | $ | 51,900 | $ | 56,077 | (4,177) | (7.4) | |
As a % of revenue | 20.7 % | 20.1 % | 22.1 % | 22.5 % | |||||||||
Amortization of acquired software and customer relationships | (6,186) | (7,296) | 1,110 | 15.2 | (12,807) | (15,775) | 2,968 | 18.8 | |||||
Foreign exchange gains (losses) | 1,280 | (3,962) | 5,242 | 132.3 | 236 | (1,653) | 1,889 | 114.3 | |||||
Interest expense – lease obligations | (105) | (131) | 26 | 19.8 | (233) | (259) | 26 | 10.0 | |||||
Finance income | 1,611 | 1,913 | (302) | (15.8) | 3,159 | 4,217 | (1,058) | (25.1) | |||||
Finance expenses | (1) | (24) | 23 | 95.8 | (75) | (27) | (48) | (177.8) | |||||
Other income | (4) | 1,201 | (1,205) | (100.3) | 1,455 | 1,500 | (45) | (3.0) | |||||
Income before income taxes | $ | 20,224 | $ | 16,789 | 3,435 | 20.5 | $ | 43,635 | $ | 44,080 | (445) | (1.0) | |
Provision for income taxes | 3,936 | 3,328 | 608 | 18.3 | 9,847 | 8,715 | 1,132 | 13.0 | |||||
Net Income for the period | $ | 16,288 | $ | 13,461 | 2,827 | 21.0 | $ | 33,788 | $ | 35,365 | (1,577) | (4.5) | |
Basic earnings per share | 0.30 | 0.24 | 0.06 | 25.0 | 0.62 | 0.64 | (0.02) | (3.1) | |||||
Diluted earnings per share | 0.30 | 0.24 | 0.06 | 25.0 | 0.62 | 0.64 | (0.02) | (3.1) | |||||
Net cash provided by operating activities | 31,562 | 36,671 | (5,109) | (13.9) | 52,353 | 57,920 | (5,567) | (9.6) | |||||
Net cash provided by operating activities excluding changes in working capital and income taxes paid | 28,689 | 25,543 | 3,146 | 12.3 | 60,096 | 63,284 | (3,188) | (5.0) | |||||
Adjusted EBITDA | |||||||||||||
Results from operating activities | 23,629 | 25,088 | (1,459) | (5.8) | 51,900 | 56,077 | (4,177) | (7.4) | |||||
Depreciation | 593 | 647 | (54) | 8.3 | 1,207 | 1,300 | (93) | 7.2 | |||||
Depreciation of right-of-use assets | 1,219 | 1,430 | (211) | 14.8 | 2,670 | 2,808 | (138) | 4.9 | |||||
Special charges | 1,027 | 1,401 | (374) | 26.7 | 1,837 | 1,492 | 345 | (23.1) | |||||
Adjusted EBITDA | $ | 26,468 | $ | 28,566 | (2,098) | (7.3) | $ | 57,614 | $ | 61,677 | (4,063) | (6.6) | |
Adjusted EBITDA margin | 23.2 % | 22.9 % | 24.6 % | 24.8 % | |||||||||
Adjusted EBITDA per diluted share | $ | 0.49 | $ | 0.52 | (0.03) | (5.8) | $ | 1.06 | $ | 1.12 | (0.06) | (5.4) | |
Enghouse Systems Limited
Condensed Consolidated Interim Statements of Financial Position | |||||
(in thousands of Canadian dollars) (unaudited) | As at April 30, 2026 | As at October 31, 2025 | |||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 269,700 | $ | 269,061 | |
Short-term investments | 27 | 25 | |||
Accounts receivable | 81,016 | 88,980 | |||
Prepaid expenses and other assets | 15,320 | 17,001 | |||
366,063 | 375,067 | ||||
Non-current assets: | |||||
Property and equipment | 3,802 | 3,890 | |||
Right-of-use assets | 9,359 | 11,453 | |||
Intangible assets | 80,077 | 89,710 | |||
Goodwill | 338,014 | 341,593 | |||
Deferred income tax assets | 35,182 | 35,105 | |||
466,434 | 481,751 | ||||
$ | 832,497 | $ | 856,818 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Accounts payable and accrued liabilities | $ | 63,063 | $ | 76,167 | |
Income taxes payable | 6,955 | 10,662 | |||
Dividends payable | 16,855 | 16,426 | |||
Provisions | 1,668 | 2,013 | |||
Deferred revenue | 114,250 | 108,268 | |||
Lease obligations | 3,932 | 5,197 | |||
206,723 | 218,733 | ||||
Non-current liabilities: | |||||
Deferred income tax liabilities | 13,763 | 13,439 | |||
Deferred revenue | 7,982 | 6,791 | |||
Net employee defined-benefit obligation | 2,438 | 2,442 | |||
Lease obligations | 5,078 | 5,944 | |||
29,261 | 28,616 | ||||
235,984 | 247,349 | ||||
Shareholders' equity: | |||||
Share capital | 116,076 | 116,894 | |||
Contributed surplus | 12,057 | 11,110 | |||
Retained earnings | 437,428 | 443,134 | |||
Accumulated other comprehensive income | 30,952 | 38,331 | |||
596,513 | 609,469 | ||||
$ | 832,497 | $ | 856,818 | ||
Enghouse Systems Limited
Condensed Consolidated Interim Statements of Operations and Comprehensive Income | |||||
(in thousands of Canadian dollars, except per share amounts) | |||||
(unaudited) | Three months | Six months | |||
Periods ended April 30 | 2026 | 2025 | 2026 | 2025 | |
Revenue Software licenses | $ 15,059 | $ 16,885 | $ 31,918 | $ 34,666 | |
SaaS and maintenance services | 79,171 | 86,189 | 163,724 | 174,121 | |
Professional services | 16,419 | 17,625 | 32,515 | 33,733 | |
Hardware | 3,628 | 4,120 | 6,218 | 6,299 | |
114,277 | 124,819 | 234,375 | 248,819 | ||
Direct costs | |||||
Software licenses | 461 | 703 | 1,107 | 1,439 | |
Services | 42,012 | 43,431 | 84,671 | 85,928 | |
Hardware | 1,705 | 1,851 | 3,027 | 3,081 | |
44,178 | 45,985 | 88,805 | 90,448 | ||
Revenue, net of direct costs | 70,099 | 78,834 | 145,570 | 158,371 | |
Operating expenses | |||||
Selling, general and administrative | 20,991 | 24,980 | 43,386 | 48,616 | |
Research and development | 22,640 | 25,288 | 44,570 | 48,078 | |
Depreciation | 593 | 647 | 1,207 | 1,300 | |
Depreciation of right-of-use assets | 1,219 | 1,430 | 2,670 | 2,808 | |
Special charges | 1,027 | 1,401 | 1,837 | 1,492 | |
46,470 | 53,746 | 93,670 | 102,294 | ||
Results from operating activities | 23,629 | 25,088 | 51,900 | 56,077 | |
Amortization of acquired software and customer relationships | (6,186) | (7,296) | (12,807) | (15,775) | |
Foreign exchange gains (losses) | 1,280 | (3,962) | 236 | (1,653) | |
Interest expense – lease obligations | (105) | (131) | (233) | (259) | |
Finance income | 1,611 | 1,913 | 3,159 | 4,217 | |
Finance expenses | (1) | (24) | (75) | (27) | |
Other (expenses) income | (4) | 1,201 | 1,455 | 1,500 | |
Income before income taxes | 20,224 | 16,789 | 43,635 | 44,080 | |
Provision for income taxes | 3,936 | 3,328 | 9,847 | 8,715 | |
Net income for the period | 16,288 | 13,461 | 33,788 | 35,365 | |
Item that may be subsequently reclassified to income: | |||||
Cumulative translation adjustment | (1,086) | (3,183) | (7,379) | 6,388 | |
Other comprehensive (loss) income | (1,086) | (3,183) | (7,379) | 6,388 | |
Comprehensive income | $ 15,202 | $ 10,278 | $ 26,409 | $ 41,753 | |
Earnings per share | |||||
Basic | $ 0.30 | $ 0.24 | $ 0.62 | $ 0.64 | |
Diluted | $ 0.30 | $ 0.24 | $ 0.62 | $ 0.64 | |
Enghouse Systems Limited
Condensed Consolidated Interim Statements of Cash Flows | |||||
(in thousands of Canadian dollars) (unaudited) | Three months | Six months | |||
Periods ended April 30 | 2026 | 2025 | 2026 | 2025 | |
OPERATING ACTIVITIES | |||||
Net income for the period | $ 16,288 | $ 13,461 | $ 33,788 | $ 35,365 | |
Adjustments for non-cash items | |||||
Depreciation | 593 | 647 | 1,207 | 1,300 | |
Depreciation of right-of-use assets | 1,219 | 1,430 | 2,670 | 2,808 | |
Interest expense – lease obligations | 105 | 131 | 233 | 259 | |
Amortization of acquired software and customer relationships | 6,186 | 7,296 | 12,807 | 15,775 | |
Stock-based compensation expense | 357 | 427 | 924 | 535 | |
Provision for income taxes | 3,936 | 3,328 | 9,847 | 8,715 | |
Finance expenses and other (income) expenses | 5 | (1,177) | (1,380) | (1,473) | |
28,689 | 25,543 | 60,096 | 63,284 | ||
Changes in non-cash operating working capital | 11,250 | 16,261 | 7,339 | 4,370 | |
Income taxes paid | (8,377) | (5,133) | (15,082) | (9,734) | |
Net cash provided by operating activities | 31,562 | 36,671 | 52,353 | 57,920 | |
INVESTING ACTIVITIES | |||||
Purchase of property and equipment, net | (300) | (403) | (1,124) | (807) | |
Acquisitions, net of cash acquired* | - | (26,813) | (5,524) | (33,399) | |
Payment of purchase consideration for prior-year acquisitions | (1,489) | - | (1,489) | - | |
Proceeds from sale of intangible asset | - | - | 701 | - | |
Net cash used in investing activities | (1,789) | (27,216) | (7,436) | (34,206) | |
FINANCING ACTIVITIES | |||||
Normal course issuer bid share repurchases | (2,033) | - | (7,084) | (5,950) | |
Repayment of lease obligations | (1,275) | (1,835) | (2,864) | (3,209) | |
Dividends paid | (16,350) | (14,340) | (32,776) | (28,737) | |
Net cash used in financing activities | (19,658) | (16,175) | (42,724) | (37,896) | |
Impact of foreign exchange on cash and cash equivalents | (605) | (299) | (1,554) | 3,227 | |
Increase (decrease) in cash and cash equivalents | 9,510 | (7,019) | 639 | (10,955) | |
Cash and cash equivalents - beginning of period | 260,190 | 270,304 | 269,061 | 274,240 | |
Cash and cash equivalents - end of period | $ 269,700 | $ 263,285 | $ 269,700 | $ 263,285 | |
*Acquisitions are net of cash acquired of $Nil and $83 for the three and six months ended April 30, 2026, respectively, and $6,667 and $9,287 for the three and six months ended April 30, 2025, respectively. |
Enghouse Systems Limited
Segment Reporting Information
(in thousands of Canadian dollars)
(unaudited)
Three months ended April 30 | 2026 | 2025 | |||||||||||
IMG | AMG | Total | IMG | AMG | Total | ||||||||
Revenue | $ | 62,839 | $ | 51,438 | $ | 114,277 | $ | 74,118 | $ | 50,701 | $ | 124,819 | |
Direct costs | (22,511) | (21,667) | (44,178) | (25,811) | (20,174) | (45,985) | |||||||
Revenue, net of direct costs | 40,328 | 29,771 | 70,099 | 48,307 | 30,527 | 78,834 | |||||||
Operating expenses excluding special charges | (20,827) | (13,626) | (34,453) | (24,001) | (14,957) | (38,958) | |||||||
Depreciation | (314) | (279) | (593) | (393) | (254) | (647) | |||||||
Depreciation of right-of-use assets | (701) | (518) | (1,219) | (927) | (503) | (1,430) | |||||||
Segment profit | $ | 18,486 | $ | 15,348 | $ | 33,834 | $ | 22,986 | $ | 14,813 | $ | 37,799 | |
Special charges | (1,027) | (1,401) | |||||||||||
Corporate and shared service expenses | (9,178) | (11,310) | |||||||||||
Results from operating activities | $ | 23,629 | $ | 25,088 | |||||||||
Six months ended April 30 | 2026 | 2025 | |||||||||||
IMG | AMG | Total | IMG | AMG | Total | ||||||||
Revenue | $ | 130,136 | $ | 104,239 | $ | 234,375 | $ | 147,339 | $ | 101,480 | $ | 248,819 | |
Direct costs | (45,309) | (43,496) | (88,805) | (51,524) | (38,924) | (90,448) | |||||||
Revenue, net of direct costs | 84,827 | 60,743 | 145,570 | 95,815 | 62,556 | 158,371 | |||||||
Operating expenses excluding special charges | (42,338) | (26,321) | (68,659) | (46,603) | (26,935) | (73,538) | |||||||
Depreciation | (640) | (567) | (1,207) | (795) | (505) | (1,300) | |||||||
Depreciation of right-of-use assets | (1,627) | (1,043) | (2,670) | (1,836) | (972) | (2,808) | |||||||
Segment profit | $ | 40,222 | $ | 32,812 | $ | 73,034 | $ | 46,581 | $ | 34,144 | $ | 80,725 | |
Special charges | (1,837) | (1,492) | |||||||||||
Corporate and shared service expenses | (19,297) | (23,156) | |||||||||||
Results from operating activities | $ | 51,900 | $ | 56,077 | |||||||||
About Enghouse
Enghouse Systems Limited is a Canadian publicly traded company (TSX: ENGH) that provides mission-critical vertically focused enterprise software solutions. Our core technologies are used for contact centers, video communications, virtual healthcare, education, telecommunications networks, IPTV, public safety and transit. The Company's two-pronged strategy to grow earnings focuses on both organic growth and acquisitions, which, to date, have been funded through net cash provided by operating activities as the Company has no external debt financing. The Company is organized around two business segments, the Interactive Management Group ("IMG") and the Asset Management Group ("AMG") due to their unique customer segments and technology offerings. Further information about Enghouse may be obtained from the Company's website at www.enghouse.com.
Conference Call and Webcast
A conference call to discuss the results will be held on Wednesday, June 10, 2026 at 8:45 a.m. EST. To participate, please call
+1-289-514-5100 or North American Toll-Free +1-800-717-1738. Confirmation code: 04682. A webcast is also available at: https://www.enghouse.com/investors.php.
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The Company uses non-IFRS measures to assess its operating performance. Securities regulations require that companies caution readers that earnings and other measures adjusted to a basis
other than IFRS do not have standardized meanings and are unlikely to be comparable to similar measures used by other companies. Accordingly, they should not be considered in isolation. The Company uses Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EBITDA per diluted share as measures of operating performance. Therefore, these collective Adjusted EBITDA measures may not be comparable to similar measures presented by other issuers. Adjusted EBITDA is calculated based on results from operating activities adjusted for depreciation of property and equipment and right-of-use assets and special charges for acquisition related restructuring costs. Management uses Adjusted EBITDA to evaluate operating performance as it excludes amortization of software and intangibles (which is an accounting allocation of the cost of software and intangible assets arising on acquisition), any impact of finance and tax related activities, asset depreciation, foreign exchange gains and losses, other income and restructuring costs.
SOURCE Enghouse Systems Limited
