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.
****
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
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