Enghouse Releases First Quarter Results

Executive Summary

• Enghouse Systems reported Q1 2026 unaudited results showing revenue of C$120.1 M (‑3.1% YoY) and net income of C$17.5 M (‑20.1% YoY).
• Adjusted EBITDA fell to C$31.1 M, a 5.9% decline year‑over‑year, with margin slipping to 25.9%.
• The company completed the acquisition of Sixbell Telco and returned C$16.4 M to shareholders via dividends while repurchasing C$5.1 M of its own shares.

Key Details

• Revenue: C$120,098 k vs. C$124,000 k in Q1 2025 (‑3.1%).
• Recurring Revenue (SaaS & maintenance): C$84,553 k vs. C$87,932 k YoY (‑3.8%), representing 70.4% of total revenue.
• Net Income: C$17,500 k vs. C$21,904 k YoY (‑20.1%).
• Adjusted EBITDA: C$31,146 k vs. C$33,111 k YoY (‑5.9%); margin 25.9% vs. 26.7% prior year.
• Operating Cash Flow (ex‑working capital & taxes): C$31,407 k vs. C$37,741 k YoY (‑16.8%).
• Cash Position: C$260.2 M at quarter end (down from C$269.1 M). No external debt.
• Dividends: Board approved 3.3% increase to $0.31 per share, payable May 29 2026.
• Share Repurchases: $5.1 M of shares repurchased during the quarter.
• Acquisition: Completed purchase of Sixbell Telco (Latin America telecom & customer‑engagement software). Net cash outflow for acquisitions: C$5.524 M (including cash acquired of C$83 k).
• Segment Performance:
• IMG revenue C$67,296 k; AMG revenue C$52,802 k.
• Segment profit: IMG C$21,735 k; AMG C$17,465 k.
• Operating Expenses: Decreased 4.3% YoY to C$46,390 k (down from C$48,457 k).
• Special Charges: $810 k this quarter vs. $91 k prior year (increase driven by acquisition‑related restructuring).
• Finance Income/Expense: Finance income down 32.8% to C$1.548 M; finance expenses up dramatically to C$74 k from $3 k YoY.
• Conference Call: Scheduled for Friday, March 13 2026 at 8:45 a.m. EST (call‑in details provided).

Notable Quotes

(No direct CEO/President quotes were included in the release.)