Enghouse Systems (ENGH) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $120.1 million, down 3.1% year-over-year, reflecting cautious customer sentiment and variable activity across markets.

• Recurring revenue (SaaS and maintenance) was $84.6 million, representing 70.4% of total revenue.

• Adjusted EBITDA was $31.1 million (25.9% margin), with net income at $17.5 million.

• Strong cash generation with $31.4 million from operating activities (excluding working capital and taxes); cash and equivalents at $260.2 million.

• Completed the Sixbell Telco acquisition, expanding presence in Latin America.

Financial highlights

• Revenue declined year-over-year and sequentially, mainly due to lower maintenance services and variability in hardware/professional services.

• AMG revenue grew 4.0% to $52.8 million, while IMG revenue dropped 8.1% to $67.3 million.

• Adjusted EBITDA margin was 25.9%, and operating margin was 23.5%.

• Dividend per share increased 3.3% to $0.31, marking the 18th consecutive annual increase.

• Cash and investments at quarter-end totaled $260.2 million.

Outlook and guidance

• Management remains focused on stability, profitability, and disciplined capital allocation, targeting internal growth and selective acquisitions.

• Cautious customer sentiment and limited visibility expected to persist; company is positioned to manage through current conditions.