MARKHAM, ON, Dec. 15, 2025 /CNW/ – Enghouse Systems Limited (TSX:ENGH) announces its fourth quarter (unaudited) and audited year-end financial results for the period ended October 31, 2025. All figures are denominated in Canadian dollars unless otherwise indicated.
Fourth Quarter and Annual Financial Highlights:
- Revenue was $124.5 million as compared to $125.7 million in the fourth quarter last year and for the fiscal year was $498.9 million compared to $502.5 million last year;
- Recurring revenue, which includes SaaS and maintenance services, was $86.1 million compared to $88.2 million in Q4 2024, and represents 69.2% of total revenue. For the fiscal year, recurring revenue was $348.0 million compared to $346.6 million in the prior year, as we continue to prioritize this revenue stream;
- Results from operating activities were $31.0 million compared to $33.4 million in Q4 2024 and decreased in the fiscal year to $114.4 million from $133.8 million;
- Net income was $21.1 million compared to $22.6 million in Q4 2024 and $73.7 million in the fiscal year compared to $81.3 million last year;
- Adjusted EBITDA was $33.7 million compared to $35.6 million in Q4 2024, while achieving a 27.0% margin. Adjusted EBITDA was $127.6 million in the fiscal year compared to $143.8 million in the prior year, while achieving a 25.6% margin;
- Net cash provided by operating activities, excluding changes in working capital and income taxes paid, was $35.3 million compared to $40.3 million in Q4 2024 and $129.5 million for the fiscal year compared to $151.8 million in the prior year. Cash, cash equivalents and short-term investments were $269.1 million as at October 31, 2025.
Fiscal 2025 unfolded amid significant economic, technological, and geopolitical shifts, including a rapidly evolving AI landscape and heightened global uncertainty from tariffs. Despite these conditions, Enghouse delivered steady performance and continued progress on strategic priorities. Revenue remained stable at $498.9 million, supported by a diversified portfolio and a recurring revenue base representing approximately 69% of total revenue, providing predictability and insulation from broader market volatility.
Throughout the year, the Company emphasized operational discipline and efficiency, advancing restructuring and cost-alignment initiatives to maintain profitability. These actions contributed to improving adjusted EBITDA in the fourth quarter and are expected to support further benefits in the coming year. Enghouse generated strong net cash provided by operating activities and maintained a robust financial position, closing the year with $269.1 million in cash and no external debt. Capital was deployed toward shareholder returns through dividends and share repurchases, as well as into three strategic acquisitions that expanded geographic reach and strengthened transportation product capabilities in communications and mobility solutions.
Subsequent to year-end, the Company acquired Sixbell Telco’s telecommunications division, expanding its presence in the Latin American market. Sixbell Telco provides a comprehensive suite of software platforms that enable service providers to modernize and transform their networks.
Looking ahead to fiscal 2026, Enghouse remains focused on strengthening its recurring revenue base, advancing operational efficiency, and pursuing acquisitions in an environment that offers attractive opportunities. With a flexible solution portfolio, disciplined cost management and a strong cash position, the Company is well positioned to navigate ongoing volatility while delivering predictable performance and long-term shareholder value.
Quarterly dividends:
Today, the Board of Directors approved the Company’s eligible quarterly dividend of $0.30 per common share payable on February 27, 2026 to shareholders of record at the close of business on February 13, 2026.
Enghouse Systems Limited
Financial Highlights
(Unaudited, in thousands of Canadian dollars)
|
For the period ended October 31 |
Three months (Unaudited) |
Twelve months |
|||||||||||
|
2025 |
2024 |
Var ($) |
Var (%) |
2025 |
2024 |
Var ($) |
Var (%) |
||||||
|
Revenue |
$ |
124,482 |
$ |
125,702 |
(1,220) |
(1.0) |
$ |
498,878 |
$ |
502,505 |
(3,627) |
(0.7) |
|
|
Direct costs |
45,728 |
44,967 |
761 |
1.7 |
181,585 |
175,586 |
5,999 |
3.4 |
|||||
|
Revenue, net of direct costs |
$ |
78,754 |
$ |
80,735 |
(1,981) |
(2.5) |
$ |
317,293 |
$ |
326,919 |
(9,626) |
(2.9) |
|
|
As a % of revenue |
63.3 % |
64.2 % |
63.6 % |
65.1 % |
|||||||||
|
Operating expenses |
47,160 |
47,133 |
27 |
0.1 |
197,867 |
191,464 |
6,403 |
3.3 |
|||||
|
Special charges |
572 |
169 |
403 |
238.5 |
5,072 |
1,609 |
3,463 |
215.2 |
|||||
|
Results from operating activities |
$ |
31,022 |
$ |
33,433 |
(2,411) |
(7.2) |
$ |
114,354 |
$ |
133,846 |
(19,492) |
(14.6) |
|
|
As a % of revenue |
24.9 % |
26.6 % |
22.9 % |
26.6 % |
|||||||||
|
Amortization of acquired software and customer relationships |
(6,685) |
(9,322) |
2,637 |
28.3 |
(29,492) |
(40,505) |
11,013 |
27.2 |
|||||
|
Foreign exchange (losses) gains |
(145) |
1,870 |
(2,015) |
107.8 |
(2,378) |
(1,680) |
(698) |
(41.5) |
|||||
|
Interest expense – lease obligations |
(114) |
(126) |
12 |
9.5 |
(505) |
(556) |
51 |
9.2 |
|||||
|
Finance income |
2,017 |
2,825 |
(808) |
(28.6) |
8,041 |
10,121 |
(2,080) |
(20.6) |
|||||
|
Finance expenses |
(55) |
(8) |
(47) |
(587.5) |
(98) |
(49) |
(49) |
(100.0) |
|||||
|
Other (expense) income |
(8) |
(424) |
416 |
98.1 |
1,617 |
89 |
1,528 |
1716.9 |
|||||
|
Income before income taxes |
$ |
26,032 |
$ |
28,248 |
(2,216) |
(7.8) |
$ |
91,539 |
$ |
101,266 |
(9,727) |
(9.6) |
|
|
Provision for income taxes |
4,904 |
5,607 |
(703) |
(12.5) |
17,873 |
19,938 |
(2,065) |
(10.4) |
|||||
|
Net Income for the period |
$ |
21,128 |
$ |
22,641 |
(1,513) |
(6.7) |
$ |
73,666 |
$ |
81,328 |
(7,662) |
(9.4) |
|
|
Basic earnings per share |
0.38 |
0.41 |
(0.03) |
(7.3) |
1.34 |
1.47 |
(0.13) |
(8.8) |
|||||
|
Diluted earnings per share |
0.38 |
0.41 |
(0.03) |
(7.3) |
1.34 |
1.47 |
(0.13) |
(8.8) |
|||||
|
Net cash provided by operating activities |
19,627 |
31,583 |
(11,956) |
(37.9) |
104,634 |
132,071 |
(27,437) |
(20.8) |
|||||
|
Net cash provided by operating activities excluding changes in |
35,325 |
40,270 |
(4,945) |
(12.3) |
129,503 |
151,803 |
(22,300) |
(14.7) |
|||||
|
Adjusted EBITDA |
|||||||||||||
|
Results from operating activities |
31,022 |
33,433 |
(2,411) |
(7.2) |
|||||||||