Enghouse Systems Q2 Earnings Call Highlights

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Wed, June 10, 2026 astatine 10:13 AM CDT 7 min read

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Revenue fell successful Enghouse’s fiscal 2nd 4th to CAD 114.3 million, astir 8% beneath a twelvemonth earlier, arsenic lawsuit caution, recurring gross churn, and delayed discretionary projects weighed connected sales. Management said overmuch of the weakness came from the Interactive Management Group and softer bundle licence and services activity.
Profitability improved contempt the top-line decline, with adjusted EBITDA astatine CAD 26.5 cardinal and nett income rising to CAD 16.3 cardinal from CAD 13.5 cardinal a twelvemonth ago. The gains were driven by outgo controls, a 13.5% driblet successful operating expenses, and beardown currency generation.
Management remained cautious connected the outlook, citing a pugnacious marketplace for interaction centers and small-to-midmarket customers, arsenic good arsenic ongoing uncertainty astir AI monetization. Enghouse ended the 4th debt-free with CAD 269.7 cardinal successful currency and continued returning superior done dividends and stock buybacks.

Enghouse Systems (TSE:ENGH) reported little gross successful its fiscal 2nd 4th arsenic absorption cited continued lawsuit caution, recurring gross churn and delayed discretionary projects, portion profitability improved connected outgo controls and currency procreation remained strong.

Chief Financial Officer Rob Medved said gross for the 4th was CAD 114.3 million, down from CAD 124.8 cardinal successful the aforesaid play past year, a diminution of astir 8%. Sequentially, gross fell 4.8% from CAD 120.1 cardinal successful the archetypal quarter.

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Medved attributed the diminution chiefly to “continued churn successful parts of our recurring gross base,” particularly wrong the Interactive Management Group, arsenic good arsenic expected runoff from anterior acquisitions and little bundle licence and nonrecreational services revenue. He said customers person been pacing purchases and projects person started cautiously, with immoderate larger oregon discretionary projects delayed alternatively than lost.

Recurring revenue, which includes SaaS and attraction streams, was astir CAD 79 million, representing astir 69% of full revenue. Medved said recurring gross remained “a important and unchangeable part” of the business, adjacent though it was somewhat little twelvemonth implicit year.

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Enghouse reported adjusted EBITDA of CAD 26.5 million, representing a 23.2% margin, which Medved said was marginally higher than the aforesaid play past year. Operating income was CAD 23.6 million, portion nett income roseate to CAD 16.3 million, oregon CAD 0.30 per diluted share, compared with CAD 13.5 million, oregon CAD 0.24 per share, successful the prior-year quarter.

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