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 $0.31 per common share, payable on August 28, 2026, to shareholders of record at the close of business on August 14, 2026.
Enghouse Systems LimitedFinancial Highlights(unaudited, in thousands of Canadian dollars)
For the periods ended April 30
Three months
Six months
2026
2025
Var ($)
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
