Enghouse Systems Delivers Third Quarter Results with Growth

Author: Owen Jenkins Updated: 09-04-2025 05:12 PM

Enghouse Systems Limited Announces Third Quarter Highlights

Enghouse Systems Limited (TSX: ENGH) has unveiled its financial performance for the third quarter. This report illustrates the company's effective management amidst a challenging economic environment, showcasing its ability to generate income and maintain a robust cash flow.

Financial Performance Overview

The company's third quarter results emphasized several key figures that illustrate its operational strength:

In the latest quarter, Enghouse reported total revenue of CAD 125.6 million. This figure represents a slight decrease from CAD 130.5 million recorded in the same quarter the previous year (Q3 2024).
Recurrence revenue for the company's services, including SaaS and maintenance, amounted to CAD 87.8 million, equivalent to 69.9% of total revenue. This marks a minor decline from the CAD 88.8 million generated in Q3 2024.
Operating income stood at CAD 27.3 million, down from CAD 34.3 million in the prior year.
Net income for the quarter was CAD 17.2 million, compared to CAD 20.6 million in Q3 2024.
Adjusted EBITDA was reported at CAD 32.3 million, representing a margin of 25.7%. Year-to-date Adjusted EBITDA totaled CAD 93.9 million.

Strategic Measures and Future Outlook

In response to the prevailing economic challenges, Enghouse has implemented strategic initiatives to align operational costs with revenues. This included organizational changes and restructuring measures aimed at enhancing profitability and preparing for future market shifts.

The firm maintained a solid balance sheet, ending the quarter with CAD 271.6 million in cash and cash equivalents, without carrying any debt. This financial strength positions Enghouse to pursue acquisition opportunities that are aligned with its growth strategy.

Dividend Declaration

The Board of Directors has approved a quarterly dividend of CAD 0.30 per common share, payable to shareholders of record. The announcement reflects the company's commitment to delivering value to its shareholders even amid fluctuating markets.

About Enghouse Systems Limited

Enghouse Systems Limited is a Canadian software company that specializes in delivering a wide array of enterprise solutions for diverse sectors, including telecommunications and contact centers. The company is known for its two-pronged approach to growth, focusing both on expanding its existing operations and pursuing strategic acquisitions. Enghouse continues to adapt its business strategy to meet changing market demands while ensuring consistent profitability.

Investing in Growth

Enghouse Systems aims to leverage its financial resources by focusing on strategic acquisitions and partnerships that will enhance its capabilities and broaden its market reach. The management believes that continued investment in innovation and technology will drive future growth.

Frequently Asked Questions

What were Enghouse's total revenues for the third quarter?

Enghouse reported total revenues of CAD 125.6 million for the third quarter.

How much did the recurring revenue contribute to total income?

Recurring revenue contributed approximately CAD 87.8 million, or 69.9% of total revenue.

What measures is Enghouse implementing to manage costs?

Enghouse is aligning its operational costs with revenue through organizational adjustments and acquisition restructuring efforts.

What is the amount of the declared quarterly dividend?

The Board approved a quarterly dividend of CAD 0.30 per common share.

How does Enghouse plan to grow in the future?

Enghouse aims to enhance its growth through strategic acquisitions and continued investment in technology and innovation.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

My love is teaching others about investing and personal finance. My goal in writing many books and articles has been to demystify financial ideas and give readers the information they need to make wise financial decisions. I write with a direct, useful style that emphasizes doable suggestions for daily living.

Along with writing, I lead webinars and seminars where I impart knowledge on how to successfully negotiate the financial world. I also write for financial journals and show up as a guest expert on financial news programs a lot. Whether they are new to investing or want to improve their approach, my mission is to enable people to take charge of their financial futures.

Beyond work, I like to hike, play the guitar, and spend time with my family. I think that balance is crucial and want to encourage people to strike a balance between their financial aspirations and their hobbies. I want to help people succeed and achieve financial security through my work, so having a good influence.

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