Enghouse Systems (ENGH) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 revenue was $498.9 million, down 0.7% year-over-year, with Q4 revenue at $124.5 million, a 1.0% decrease from Q4 2024.

• Recurring revenue accounted for over 69% of total revenue, providing stability amid economic, technological, and geopolitical challenges.

• Operational discipline, cost management, and efficiency initiatives supported profitability and cash generation.

• AMG revenue grew over 10% year-over-year, driven by acquisitions, while IMG revenue declined.

• Dividend per share increased 16.7% year-over-year to $1.12.

Financial highlights

• Q4 revenue was $124.5 million, down from $125.7 million in Q4 last year.

• Full-year revenue totaled $498.9 million, slightly lower than $502.5 million in fiscal 2024.

• Recurring revenue (SaaS and maintenance) comprised over 69% of total revenue for both Q4 and the year.

• Q4 adjusted EBITDA was $33.7 million (27% margin); full-year adjusted EBITDA was $127.6 million (25.6% margin), down 11.3% year-over-year.

• Net income for fiscal 2025 was $73.7 million, or $1.34 per diluted share, down 9.4% year-over-year.

Outlook and guidance

• Efficiency gains from restructuring are expected to continue into fiscal 2026.

• Fiscal 2026 anticipated to be stable, with limited internal growth but strong focus on acquisition-driven expansion.

• New AI professional services groups to launch in January, aiming to monetize internal expertise and support customers.

• Focus remains on strengthening recurring revenue, operational efficiency, and pursuing further acquisitions.

• The company is positioned to deliver predictable performance and long-term shareholder value despite ongoing market volatility.