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) | 114,354 | 133,846 | (19,492) | (14.6) | |||||
Depreciation | 624 | 655 | (31) | (4.7) | 2,518 | 2,347 | 171 | 7.3 | |||||
Depreciation of right-of-use assets | 1,443 | 1,375 | 68 | 4.9 | 5,644 | 5,981 | (337) | (5.6) | |||||
Special charges | 572 | 169 | 403 | 238.5 | 5,072 | 1,609 | 3,463 | 215.2 | |||||
Adjusted EBITDA | $ | 33,661 | $ | 35,632 | (1,971) | (5.5) | $ | 127,588 | $ | 143,783 | (16,195) | (11.3) | |
Adjusted EBITDA margin | 27.0 % | 28.3 % | 25.6 % | 28.6 % | |||||||||
Adjusted EBITDA per diluted share | $ | 0.61 | $ | 0.64 | ( 0.03) | (4.7) | $ | 2.31 | $ | 2.60 | ( 0.29) | (11.2) | |
Enghouse Systems Limited
Consolidated Statements of Financial Position | |||||
(in thousands of Canadian dollars) | As at October 31, 2025 | As at October 31, 2024 | |||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 269,061 | $ | 274,240 | |
Short-term investments | 25 | 487 | |||
Accounts receivable | 88,980 | 92,348 | |||
Prepaid expenses and other assets | 17,001 | 16,100 | |||
375,067 | 383,175 | ||||
Non-current assets: | |||||
Property and equipment | 3,890 | 4,192 | |||
Right-of-use assets | 11,453 | 11,473 | |||
Intangible assets | 89,710 | 98,594 | |||
Goodwill | 341,593 | 309,831 | |||
Deferred income tax assets | 35,105 | 26,228 | |||
481,751 | 450,318 | ||||
$ | 856,818 | $ | 833,493 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Accounts payable and accrued liabilities | $ | 76,167 | $ | 70,087 | |
Income tax payable | 10,662 | 5,525 | |||
Dividends payable | 16,426 | 14,397 | |||
Provisions | 2,013 | 1,834 | |||
Deferred revenue | 108,268 | 114,080 | |||
Lease obligations | 5,197 | 5,344 | |||
218,733 | 211,267 | ||||
Non-current liabilities: | |||||
Deferred income tax liabilities | 13,439 | 10,500 | |||
Deferred revenue | 6,791 | 8,094 | |||
Net employee defined benefit obligation | 2,442 | 2,081 | |||
Lease obligations | 5,944 | 5,744 | |||
28,616 | 26,419 | ||||
247,349 | 237,686 | ||||
Shareholders' equity | |||||
Share capital | 116,894 | 118,217 | |||
Contributed surplus | 11,110 | 9,764 | |||
Retained earnings | 443,134 | 446,748 | |||
Accumulated other comprehensive income | 38,331 | 21,078 | |||
609,469 | 595,807 | ||||
$ | 856,818 | $ | 833,493 | ||
Enghouse Systems Limited
Consolidated Statement of Operations and Comprehensive Income | |||||
(in thousands of Canadian dollars, except per share amounts) | |||||
Three months | Twelve months | ||||
Periods ended October 31 | 2025 (Unaudited) | 2024 (Unaudited) | 2025 | 2024 | |
Revenue | |||||
Software licenses | $ 15,480 | $ 15,860 | $ 67,436 | $ 72,906 | |
SaaS and maintenance services | 86,121 | 88,196 | 347,995 | 346,579 | |
Professional services | 17,349 | 18,469 | 68,238 | 70,046 | |
Hardware | 5,532 | 3,177 | 15,209 | 12,974 | |
124,482 | 125,702 | 498,878 | 502,505 | ||
Direct costs | |||||
Software licenses | 673 | 397 | 2,752 | 3,501 | |
Services | 43,019 | 43,043 | 172,357 | 165,221 | |
Hardware | 2,036 | 1,527 | 6,476 | 6,864 | |
45,728 | 44,967 | 181,585 | 175,586 | ||
Revenue, net of direct costs | 78,754 | 80,735 | 317,293 | 326,919 | |
Operating expenses | |||||
Selling, general and administrative | 21,267 | 22,642 | 93,635 | 94,303 | |
Research and development | 23,826 | 22,461 | 96,070 | 88,833 | |
Depreciation | 624 | 655 | 2,518 | 2,347 | |
Depreciation of right-of-use assets | 1,443 | 1,375 | 5,644 | 5,981 | |
Special charges | 572 | 169 | 5,072 | 1,609 | |
47,732 | 47,302 | 202,939 | 193,073 | ||
Results from operating activities | 31,022 | 33,433 | 114,354 | 133,846 | |
Amortization of acquired software and customer relationships | (6,685) | (9,322) | (29,492) | (40,505) | |
Foreign exchange (losses) gains | (145) | 1,870 | (2,378) | (1,680) | |
Interest expense – lease obligations | (114) | (126) | (505) | (556) | |
Finance income | 2,017 | 2,825 | 8,041 | 10,121 | |
Finance expenses | (55) | (8) | (98) | (49) | |
Other (expense) income | (8) | (424) | 1,617 | 89 | |
Income before income taxes | 26,032 | 28,248 | 91,539 | 101,266 | |
Provision for income taxes | 4,904 | 5,607 | 17,873 | 19,938 | |
Net income for the period | $ 21,128 | $ 22,641 | $ 73,666 | $ 81,328 | |
Items that may be subsequently reclassified to income: | |||||
Cumulative translation adjustment | 8,938 | 2,882 | 17,253 | 10,249 | |
Other comprehensive income | 8,938 | 2,882 | 17,253 | 10,249 | |
Comprehensive income | $ 30,066 | $ 25,523 | $ 90,919 | $ 91,577 | |
Earnings per share | |||||
Basic | $ 0.38 | $ 0.41 | $ 1.34 | $ 1.47 | |
Diluted | $ 0.38 | $ 0.41 | $ 1.34 | $ 1.47 | |
Enghouse Systems Limited
Consolidated Statements of Cash Flows | |||||
(in thousands of Canadian dollars) | Three months | Twelve months | |||
Periods ended October 31 | 2025 (Unaudited) | 2024 (Unaudited) | 2025 | 2024 | |
OPERATING ACTIVITIES | |||||
Net income for the period | $ 21,128 | $ 22,641 | $ 73,666 | $ 81,328 | |
Adjustments for non-cash items | |||||
Depreciation | 624 | 655 | 2,518 | 2,347 | |
Depreciation of right-of-use assets | 1,443 | 1,375 | 5,644 | 5,981 | |
Interest expense – lease obligations | 114 | 126 | 505 | 556 | |
Amortization of acquired software and customer relationships | 6,685 | 9,322 | 29,492 | 40,505 | |
Stock-based compensation expense | 364 | 112 | 1,324 | 1,188 | |
Provision for income taxes | 4,904 | 5,607 | 17,873 | 19,938 | |
Finance expenses and other (income) expense | 63 | 432 | (1,519) | (40) | |
35,325 | 40,270 | 129,503 | 151,803 | ||
Changes in non-cash operating working capital | (10,031) | (7,674) | (6,361) | (7,920) | |
Income taxes paid | (5,667) | (1,013) | (18,508) | (11,812) | |
Net cash provided by operating activities | 19,627 | 31,583 | 104,634 | 132,071 | |
INVESTING ACTIVITIES | |||||
Purchase of property and equipment, net | (300) | (516) | (1,479) | (1,977) | |
Acquisitions, net of cash acquired* | - | - | (33,399) | (43,448) | |
Proceeds from sale of short-term investments | 75 | - | 75 | - | |
Recovery of purchase consideration for prior-year acquisitions | - | - | - | 171 | |
Net cash used in investing activities | ( 225) | ( 516) | (34,803) | (45,254) | |
FINANCING ACTIVITIES | |||||
Issuance of share capital | - | 2,990 | - | 9,085 | |
Normal course issuer bid share repurchases | (7,213) | (3,088) | (14,742) | (5,994) | |
Repayment of lease obligations | (1,304) | (1,283) | (6,074) | (7,030) | |
Dividends paid | (16,526) | (14,397) | (61,810) | (53,139) | |
Net cash used in financing activities | (25,043) | (15,778) | (82,626) | (57,078) | |
Impact of foreign exchange on cash and cash equivalents | 3,221 | 1,238 | 7,616 | 4,969 | |
(Decrease) increase in cash and cash equivalents | (2,420) | 16,527 | (5,179) | 34,708 | |
Cash and cash equivalents - beginning of period | 271,481 | 257,713 | 274,240 | 239,532 | |
Cash and cash equivalents - end of period | $ 269,061 | $ 274,240 | $ 269,061 | $ 274,240 | |
* Acquisitions are net of cash acquired of nil and $9,287 for the quarter and year ended October 31, 2025, respectively and nil and $742 for the quarter and year ended October 31, 2024, respectively. |
Enghouse Systems Limited
Segment Reporting Information
(in thousands of Canadian dollars)
For the period ended October 31, 2025 | Three months (Unaudited) | Twelve months | |||||||||||
IMG | AMG | Total | IMG | AMG | Total | ||||||||
Revenue | $ | 68,795 | $ | 55,687 | $ | 124,482 | $ | 285,760 | $ | 213,118 | $ | 498,878 | |
Direct costs | (23,787) | (21,941) | (45,728) | (100,133) | (81,452) | (181,585) | |||||||
Revenue, net of direct costs | 45,008 | 33,746 | 78,754 | 185,627 | 131,666 | 317,293 | |||||||
Operating expenses excluding special charges | (21,232) | (14,432) | (35,664) | (90,066) | (55,625) | (145,691) | |||||||
Depreciation | (290) | (334) | (624) | (1,441) | (1,077) | (2,518) | |||||||
Depreciation of right-of-use assets | (867) | (576) | (1,443) | (3,568) | (2,076) | (5,644) | |||||||
Segment profit | $ | 22,619 | $ | 18,404 | $ | 41,023 | $ | 90,552 | $ | 72,888 | $ | 163,440 | |
Special charges | (572) | (5,072) | |||||||||||
Corporate and shared service expenses | (9,429) | (44,014) | |||||||||||
Results from operating activities | $ | 31,022 | $ | 114,354 | |||||||||
For the period ended October 31, 2024 | Three months (Unaudited) | Twelve months | |||||||||||
IMG | AMG | Total | IMG | AMG | Total | ||||||||
Revenue | $ | 74,731 | $ | 50,971 | $ | 125,702 | $ | 308,920 | $ | 193,585 | $ | 502,505 | |
Direct costs | (25,900) | (19,067) | (44,967) | (102,390) | (73,196) | (175,586) | |||||||
Revenue, net of direct costs | 48,831 | 31,904 | 80,735 | 206,530 | 120,389 | 326,919 | |||||||
Operating expenses excluding special charges | (21,235) | (13,071) | (34,306) | (90,871) | (47,238) | (138,109) | |||||||
Depreciation | (416) | (239) | (655) | (1,574) | (773) | (2,347) | |||||||
Depreciation of right-of-use assets | (940) | (435) | (1,375) | (3,870) | (2,111) | (5,981) | |||||||
Segment profit | $ | 26,240 | $ | 18,159 | $ | 44,399 | $ | 110,215 | $ | 70,267 | $ | 180,482 | |
Special charges | (169) | (1,609) | |||||||||||
Corporate and shared service expenses | (10,797) | (45,027) | |||||||||||
Results from operating activities | $ | 33,433 | $ | 133,846 | |||||||||
About-Enghouse
Enghouse Systems Limited is a Canadian publicly traded company (TSX: ENGH) that provides mission-critical vertically focused enterprise software solutions. Our core technologies are used for contact centers, video communications, virtual healthcare, education, telecommunications, networks, IPTV, public safety and transit. The Company's two-pronged strategy to grow earnings focuses on both organic growth and acquisitions, which, to date, have been funded through net cash provided by operating activities as the Company has no external debt financing. The Company is organized around two business segments, the Interactive Management Group ("IMG") and the Asset Management Group ("AMG") due to their unique customer segments and technology offerings. Further information about Enghouse may be obtained from the Company's website at www.enghouse.com.
Conference Call and Webcast
A conference call to discuss the results will be held on Tuesday, December 16, 2025 at 8:45 a.m. EST. To participate, please call +1-289-514-5100 or North American Toll-Free +1-800-717-1738. Confirmation code: 17364 A webcast is also available at: https://www.enghouse.com/investors.php.
The Company uses non-IFRS measures to assess its operating performance. Securities regulations require that companies caution readers that earnings and other measures adjusted to a basis other than IFRS do not have standardized meanings and are unlikely to be comparable to similar measures used by other companies. Accordingly, they should not be considered in isolation. The Company uses Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EBITDA per diluted share as measures of operating performance. Therefore, these collective Adjusted EBITDA measures may not be comparable to similar measures presented by other issuers. Adjusted EBITDA is calculated based on results from operating activities adjusted for depreciation of property and equipment and right-of-use assets and special charges for acquisition related restructuring costs. Management uses Adjusted EBITDA to evaluate operating performance as it excludes amortization of software and intangibles (which is an accounting allocation of the cost of software and intangible assets arising on acquisition), any impact of finance and tax related activities, asset depreciation, foreign exchange gains and losses, other income and restructuring costs.
SOURCE Enghouse Systems Limited
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