Canada's Enghouse misses Q3 revenue estimates

Enghouse Systems

04/09/2025 22:10

Overview

Enghouse Q3 revenue falls 3.8% yr/yr, missing analysts' expectations

Adjusted EBITDA for Q3 misses estimates

Co maintains strong cash position with C$271.6 mln, no external debt

Outlook

Enghouse plans to continue cost management measures to improve profitability

Company aims to leverage cash resources for acquisitions

Company sees ongoing macroeconomic uncertainty impacting market conditions

Result Drivers

RECURRING REVENUE - Recurring revenue, including SaaS and maintenance services, accounted for 69.9% of total revenue, with a slight increase for the nine-month period

COST ALIGNMENT - Strategic cost alignment and acquisition restructuring efforts led to special charges of approximately C$3.0 mln

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
C$125.58 mln
C$129.50 mln (3 Analysts)
Q3 EPS
C$0.31
Q3 Net Income
C$17.17 mln
Q3 Adjusted EBITDA
Miss
C$32.25 mln
C$34.40 mln (3 Analysts)
Q3 Adjusted EBITDA Margin
25.7%
Q3 Operating Expenses
C$49.90 mln
Q3 Pretax Profit
C$21.43 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy."

Wall Street's median 12-month price target for Enghouse Systems Ltd is C$25.50, about 11.9% above its September 3 closing price of C$22.46

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nCNW3x58sa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)