Q2/F26: Significant Miss; Growth Deteriorates as Organic Decline Worsens

研报英文原文证据摘录

Q2/F26: Significant Miss; Growth Deteriorates as Organic Decline Worsens

Technology

Enghouse Systems Ltd.

TD SECURITIES INC. - CANADA QUICK TAKE: EARNINGS UPDATE

June 9, 2026

Price: C$17.69 (06/9/2026) Q2/F26: Significant Miss; Growth Deteriorates

Price Target: C$17.00 as Organic Decline Worsens

HOLD (2)

ESG SCORE: 55/100

David Kwan, CFA^ THE TD COWEN INSIGHT

604 654 3455

Aided by the strong rebound in software stocks in the last two months, the shares have

david.kwan@tdsecurities.com

rebounded ~20% from the multi-year low following its disappointing Q1 results in mid-March.

Firuz Yakhyayev, CFA^ We expect the stock to give up most/all of those gains given the significant Q2 miss and the

416 983 4186 weakening (organic) growth profile but think its strong balance sheet could help provide some

firuz.yakhyayev@tdsecurities.com

support via buybacks and M&A.

Key Data

Symbol TSX: ENGH-T Event: After market close, ENGH reported its Q2/F26 results.

Market Cap C$964.1MM

Conference Call: Wednesday, June 10, 8:45 a.m. ET (webcast link)

Impact: NEGATIVE for sentiment and the growth outlook

Growth profile weakens, as revenue declines 9% y/y in cc. Q2 revenue of C$114.3mm missed

us/consensus by 7%, with revenue growth declining 8% y/y and 9% in cc.

SaaS and maintenance services revenue of C$79.2mm (~69% of revenue) was 8% below our

forecast and also down 8% y/y.

ENGH indicated that macro/geopolitical headwinds and rapid technological change continue

to hinder growth.

We estimate negative mid-teens organic growth. Contributions from the Margento, Trafi, and

Sixbell acquisitions could not offset significant organic declines, which looks to have worsened

in recent quarters. We estimate revenue declined organically y/y in the HSD in Q4/F25, low