Key Points – Revenue fell in Enghouse’s fiscal second quarter to CAD 114.3 million, about 8% below a year earlier, as customer caution, recurring revenue churn, and delayed discretionary projects weighed on sales.
Management said much of the weakness came from the Interactive Management Group and softer software license and services activity. – Profitability improved despite the top-line decline, with adjusted EBITDA at CAD 26.5 million and net income rising to CAD 16.3 million from CAD 13.5 million a year ago
The gains were driven by cost controls, a 13.5% drop in operating expenses, and strong cash generation. – Management remained cautious on the outlook, citing a tough market for contact centers and small-to-midmarket customers, as well as ongoing uncertainty around AI monetization. Enghouse ended the quarter debt-free with CAD 269.7 million in cash and continued returning capital through dividends and share buybacks. Enghouse Systems (TSE:ENGH) reported lower revenue in its fiscal second quarter as management cited continued customer caution, recurring revenue churn and delayed discretionary projects, while profitability improved on cost controls and cash generation remained strong.
Chief Financial Officer Rob Medved said revenue for the quarter was CAD 114.3 million, down from CAD 124.8 million in the same period last year, a decline of about 8%. Sequentially, revenue fell 4.8% from CAD 120.1 million in the first quarter. Medved attributed the decline primarily to “continued churn in parts of our recurring revenue base,” especially within the Interactive Management Group, as well as expected runoff from prior acquisitions and lower software license and professional services revenue.