EarningsQ3 2026 Earnings Report
DE:3E4 Q3 2026 EPS Results
Actual EPS€0.17
Consensus EPS€0.20
Beat/MissMissed by -€0.03
One Year Ago EPS€0.19
DE:3E4 Q3 2026 Revenue Results
Actual Revenue€73.26M
Expected Revenue€73.54M
Beat/MissMissed by -€281.65K
YoY Revenue Growth-6.37%
Earnings Announcement Details
QuarterQ3 2026
Date09/10/2026
TimeAfter Close
Conference CallThursday, September 10, 2026
DE:3E4 Upcoming Earnings
Enghouse Systems's next earnings date is estimated for December 10, 2026, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:3E4 Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Neutral
The call was balanced. Enghouse reported sequential revenue growth, stronger EBITDA and segment profits, substantial cash generation, no external debt, and continued shareholder returns. These positives were offset by revenue below the prior-year level, cautious demand, ongoing churn, declines at Lifesize and Qumu, difficult contact center and telecommunications markets, limited AI monetization, no completed acquisitions, and management's view that mid-20% EBITDA margins are more realistic than a return to the high 20s.Company Guidance
Sequential Revenue Improvement
Q3 revenue was CAD 117.6 million, up from CAD 114.3 million in Q2, an increase of approximately 2.9%. The sequential improvement was driven by stronger software sales, favorable foreign exchange, and the timing of certain transactions.
Stable Recurring Revenue Base
Recurring revenue remained stable at approximately 69.5% of total revenue, providing what management described as a strong foundation for the business.
Improved Profitability and EBITDA Margin
Adjusted EBITDA increased to CAD 30.8 million from CAD 26.5 million in Q2, an increase of approximately 16.2%. EBITDA margin improved to 26.2% from 23.2% in Q2 and 25.7% in the prior-year quarter.
Lower Operating Expenses
Operating expenses, excluding special charges, declined to CAD 45.7 million from CAD 49.9 million in the prior-year period, a reduction of approximately 8.4%, reflecting cost alignment and operating-discipline initiatives.
Operating Activity Results Despite Restructuring Charge
Results from operating activities increased to CAD 24.5 million from CAD 23.6 million in Q2, despite a CAD 4.6 million restructuring charge recorded during the quarter. Management stated that the restructuring was completed late in the quarter and that benefits will phase in over future quarters.
Asset Management Group Sequential Growth
Asset Management Group revenue increased to CAD 53.0 million from CAD 51.4 million in Q2. The improvement was driven by stronger maintenance, SaaS, and professional services revenue, contributions from the Sixbell acquisition, and delayed professional services projects moving forward.
Asset Management Group Profit Improvement
Asset Management Group segment profit increased to approximately CAD 18.5 million from CAD 15.3 million in Q2, reflecting improved revenue and continued cost discipline.
Interactive Management Group Growth and Better Renewals
Interactive Management Group revenue increased to CAD 64.6 million from CAD 62.8 million in Q2. Software sales improved sequentially, churn moderated during the quarter, and renewal performance improved.
Interactive Management Group Profit Improvement
Interactive Management Group segment profit increased to approximately CAD 21.5 million from CAD 18.5 million in Q2. Cost reductions, particularly within R&D, helped offset ongoing pressure from recurring revenue attrition.
Strong Cash Generation and Debt-Free Balance Sheet
Operating cash flow before changes in working capital and income taxes paid was CAD 28.4 million. Enghouse ended the quarter with CAD 267.8 million in cash equivalents and short-term investments and carried no external debt.
Capital Returned to Shareholders
During the quarter, Enghouse returned CAD 16.9 million through dividends and CAD 7.5 million through share repurchases. The board subsequently declared a quarterly dividend of CAD 0.31 per common share, payable on November 27, 2026.
Share Repurchases Viewed as Attractive Capital Allocation
Management stated that Enghouse continued purchasing its own shares under the TSX-defined normal course issuer bid and considered the shares a good use of funds and, in many cases, better value than current acquisition opportunities. Management also stated that the dividend yield was approximately 7% because of the lower share price.
AI Investment and Internal Productivity Use
Enghouse recorded growth in AI-related activity during the quarter, continued to see customer interest in AI-enabled solutions, and used AI internally to improve productivity, accelerate development efforts, and support operational efficiency. Dedicated AI groups operate within both the Asset Management Group and Interactive Management Group.
Large M&A Pipeline and Financial Flexibility
Management described the M&A pipeline as quite large, with more opportunities than usual. Enghouse continues to investigate opportunities in the private and public markets, maintains financial resources to pursue acquisitions, and targets returns on investment that are generally 20% or higher.
DE:3E4 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed