Canada's Enghouse Q2 revenue falls amid global market turbulence

Enghouse Systems

09/06/2026 22:12

Overview
Canada enterprise software firm's Q2 revenue fell 8% yr/yr, missing analyst expectations
Q2 adjusted EBITDA declined 7% yr/yr and missed analyst expectations
Net income for Q2 rose 21% yr/yr, aided by lower operating expenses

Outlook
Company expects cost management actions to yield further benefits as they fully annualize
Enghouse says strong liquidity and recurring revenue base position it to navigate ongoing uncertainty
Company plans to invest in operational efficiencies, acquisitions and AI-driven product innovation

Result Drivers
MARKET UNCERTAINTY - Co said ongoing turbulence in global markets, shifting geopolitical conditions, trade dynamics and rapid technological change contributed to revenue declines
SEGMENT PERFORMANCE - Asset Management Group reported stable revenue trends influenced by timing of one-time transactions, while Interactive Management Group saw customer churn, including from prior acquisitions and migration to SaaS-based offerings
COST CONTROL - Lower operating expenses from operating efficiencies and disciplined expense management supported profitability

Company press release: ID:nCNWNfRBya

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
C$114.28 mln
C$122.83 mln (4 Analysts)
Q2 EPS
 
C$0.30
 
Q2 Net Income
 
C$16.29 mln
 
Q2 Adjusted EBITDA
Miss
C$26.47 mln
C$31.07 mln (4 Analysts)
Q2 Adjusted EBITDA Margin
 
23.2%
 
Q2 Operating Expenses
 
C$45.44 mln
 
Q2 Pretax Profit
 
C$20.22 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "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$18.25, about 2% above its June 8 closing price of C$17.90
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

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(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.)