First Quarter Financial Highlights:
Revenue was $120.1 million as compared to $124.0 million in Q1 2025;
Recurring revenue, which includes SaaS and maintenance services, decreased by 3.8% to $84.6 million compared to $87.9 million in Q1 2025, and represents 70.4% of total revenue, as we continue to prioritize this revenue stream;
Results from operating activities were $28.3 million compared to $31.0 million in Q1 2025;
Net income was $17.5 million compared to $21.9 million in Q1 2025;
Adjusted EBITDA decreased to $31.1 million compared to $33.1 million, while achieving a 25.9% margin;
Net cash provided by operating activities, excluding changes in working capital and income taxes paid, was $31.4 million compared to $37.7 million in Q1 2025. Cash, cash equivalents and short-term investments were $260.2 million as at January 31, 2026.
Amid ongoing macroeconomic shifts, everchanging AI impact predictions and an increasingly unpredictable global environment, Enghouse continues to remain persistent in its core principles of disciplined execution, operational resilience and long-term value creation. The Company benefits from a substantial recurring revenue base, which consistently represents approximately 70% of total revenues and demonstrates stability and predictability across changing market conditions.
Throughout the quarter, the Company continued with its restructuring and alignment initiatives to support operational efficiency and profitability, positioning the business for scalable growth. Our Asset Management Group revenue increased over the prior year quarter as our expansion in that segment provides for a more diverse product suite. Combined with offering a balanced mix of on-premise and SaaS solutions, Enghouse is both well positioned and funded to capitalize on accretive opportunities that expand the Company's portfolio.
During the quarter, Enghouse completed the acquisition of Sixbell Telco ("Sixbell"), a provider of telecommunications and customer engagement software solutions in Latin America. Sixbell provides a comprehensive suite of software platforms that enable service providers to modernize and transform their networks. Its solutions span converged charging, intelligent routing, signaling management, and voice interaction solutions.
The Company generated positive net cash provided by operating activities during the quarter, while funding the Sixbell acquisition, returning $16.4 million to shareholders through dividends and repurchasing $5.1 million of its shares. As a result, Enghouse closed the quarter with $260.2 million in cash, cash equivalents and short-term investments, compared to $269.1 million at October 31, 2025, with no external debt financing.
With a robust balance sheet and consistent cash generation, Enghouse remains well-equipped to allocate capital in a disciplined manner, including dividends, share repurchases and strategic acquisitions that deepen vertical expertise and strengthen geographic presence. The Company remains focused on driving profitable growth, enhancing operational efficiency and delivering predictable performance and long-term shareholder value.
Quarterly dividends:
Today, the Board of Directors approved a 3.3% increase in the Company's eligible quarterly dividend to $0.31 per common share, payable on May 29, 2026, to shareholders of record at the close of business on May 15, 2026. This represents the 18th consecutive year in which the Company increased its dividend.
Enghouse Systems LimitedFinancial Highlights(unaudited, in thousands of Canadian dollars)
For the periods ended January 31
Three months
2026
2025
Var ($)
Var (%)
Revenue
$ 120,098
$ 124,000
(3,902)
(3.1)
Direct costs
44,627
44,463
164
0.4
Revenue, net of direct costs
$
75,471
$
79,537
(4,066)
(5.1)
As a % of revenue
62.8 %
64.1 %
Operating expenses
46,390
48,457
(2,067)
(4.3)
Special charges
810
91
719
790.1
Results from operating activities
$
28,271
$
30,989
(2,718)
(8.8)
As a % of revenue
23.5 %
25.0 %
Amortization of acquired software and customer relationships
(6,621)
(8,479)
1,858
21.9
Foreign exchange (losses) gains
(1,044)
2,309
(3,353)
(145.2)
Interest expense, lease obligations
(128)
(128)
0
0.0
Finance income
1,548
2,304
(756)
(32.8)
Finance expenses
(74)
(3)
(71)
(2366.7)
Other income
1,459
299
1,160
388.0
Income before income taxes
$
23,411
$
27,291
(3,880)
(14.2)
Provision for income taxes
5,911
5,387
524
9.7
Net income for the period
$
17,500
$
21,904
(4,404)
(20.1)
Basic earnings per share
$
0.32
$
0.40
(0.08)
(20.0)
Diluted earnings per share
$
0.32
$
0.40
(0.08)
(20.0)
Net cash provided by operating activities
20,791
21,249
(458)
(2.2)
Net cash provided by operating activities excluding changes in workingcapital and income taxes paid
31,407
37,741
(6,334)
(16.8)
Adjusted EBITDA
Results from operating activities
28,271
30,989
(2,718)
(8.8)
Depreciation
614
653
(39)
6.0
