Enghouse Systems (ENGH) Q3 2025 earnings summary

Executive summary

• Q3 revenue was $125.6M (CAD 125.6M), down 3.8% year-over-year but slightly up from Q2; recurring revenue was $87.8M, representing 69.9% of total.

• Adjusted EBITDA for Q3 was $32.3M (25.7% margin), down 14.5% year-over-year; net income was $17.2M (EPS $0.31), down 16.6%.

• Strategic restructuring and cost alignment in Q3 led to $3.0M in special charges, expected to yield ongoing cost savings.

• Ended the quarter with $271.6M in cash and no external debt, up 5% year-over-year.

• Dividend per share increased to $0.30, payable November 28, 2025.

Financial highlights

• Operating cash flow before working capital and taxes was $30.9M in Q3; net cash from operating activities was $27.1M, down 32.8% year-over-year.

• Basic and diluted EPS for Q3 were $0.31, down from $0.37 last year.

• Year-to-date revenue was $374.4M, down 0.6% year-over-year.

• SaaS and maintenance revenue for Q3 was $87.8M, down 1.2% year-over-year; YTD was $261.9M, up 1.4%.

• Dividend per share YTD was $0.82, up 17.1% year-over-year.

Outlook and guidance

• Entering Q4 with a leaner cost structure and strong balance sheet, focused on accretive acquisitions and profitability.

• No significant restructuring charges expected in Q4; ongoing benefits from Q3 actions anticipated.

• Cost management measures are expected to yield future benefits as they take full effect.