Canada's Enghouse Q3 revenue slightly misses estimates amid evolving economic conditions

Enghouse Systems

10/09/2026 22:13

Overview
Canada enterprise software provider's Q3 revenue fell 6.4% yr/yr, slightly missing analyst expectations
Q3 adjusted EBITDA beat consensus, with a 26.2% margin
Company took C$4.6 mln restructuring charge and completed C$7.5 mln share buybacks

Outlook
Company expects additional benefits from cost optimization efforts in future periods
Enghouse says financial strength allows for investment, acquisitions, and response to market opportunities
Company says evolving economic conditions and AI trends continue to shape business environment

Result Drivers
ECONOMIC ENVIRONMENT - Co said results were shaped by evolving economic conditions, shifting trade dynamics, and the impact of artificial intelligence
COST OPTIMIZATION - Operating expenses fell due to cost optimization efforts and restructuring actions, with further benefits expected

Company press release: ID:nCNWHZSFDa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
C$117.58 mln
C$118.03 mln (4 Analysts)
Q3 EPS
 
C$0.28
 
Q3 Net Income
 
C$15.38 mln
 
Q3 Adjusted EBITDA
Beat
C$30.8 mln
C$29.41 mln (4 Analysts)
Q3 Adjusted EBITDA Margin
 
26.2%
 
Q3 Operating Expenses
 
C$45.72 mln
 
Q3 Pretax Profit
 
C$19.85 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 Limited is C$17.00, about 9.7% above its September 9 closing price of C$15.50
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Sept 9 - Canada's Currency Exchange International Q3 revenue rises driven by Payments growth
Sept 9 - Canada's D2L Q2 swings to loss on non-cash fair value adjustment; cuts FY27 guidance
Sept 9 - Canada's Haivision Q3 revenue dips on purchasing and deployment cycles

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)