Canada's Enghouse Systems misses Q1 revenue estimates

Enghouse Systems

12/03/2026 21:16

Overview

Canada enterprise software firm's Q1 revenue fell 3% and missed analyst expectations

Q1 adjusted EBITDA declined and missed analyst estimates

Company completed acquisition of Sixbell Telco in Latin America

Result Drivers

RECURRING REVENUE DECLINE - Co said recurring revenue, including SaaS and maintenance, fell 3.8% as it continued to prioritize this stream

RESTRUCTURING INITIATIVES - Co continued restructuring and alignment efforts to support operational efficiency and profitability

ASSET MANAGEMENT GROWTH - Asset Management Group revenue increased over the prior year quarter due to segment expansion

Company press release: ID:nCNWWGF8xa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
C$120.10 mln
C$124.58 mln (4 Analysts)
Q1 EPS
C$0.32
Q1 Net Income
C$17.50 mln
Q1 Adjusted EBITDA
Miss
C$31.15 mln
C$33.57 mln (4 Analysts)
Q1 Adjusted EBITDA Margin
25.90%
Q1 Operating Expenses
C$46.39 mln
Q1 Pretax Profit
C$23.41 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$22.00, about 22.8% above its March 11 closing price of C$17.91

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago

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.)