Enghouse Systems Ltd Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Erin Kyle - CIBC World Markets Corp - Analyst : Maybe I can start with whether you can give us an update on the progress of the LifeSci solution from a go-to-market perspective. Now that, that solution has been revamped. So how have new bookings been trending there?

Question: Erin Kyle - CIBC World Markets Corp - Analyst : Okay. That's helpful context there. And then I just wanted to ask -- so I recognized -- recognizing the challenging environment for organic growth over the past several quarters. I was wondering if you could discuss how you're evaluating for future growth here and whether divestitures of any noncore assets or old acquisitions have ever been considered as a potential lever to enhance focus and improve the organic growth profile of the business here?

Question: Erin Kyle - CIBC World Markets Corp - Analyst : Fair enough. Maybe I'll just squeeze one more in here. Just on the Sixbell acquisition that you closed post quarter end. Maybe you can just give us any additional color on the size of that acquisition and any progress on integration so far.

Question: Salman Zia Rana - TD Securities Inc - Analyst : This is Salman Rana on behalf of David Kwan. So the commentary on your results, it mentions that you expect further efficiency gains going forward. So without making in any additional M&A, could this imply that margins could be higher versus the 27% you delivered this quarter?

Question: Salman Zia Rana - TD Securities Inc - Analyst : Okay. And on the restructuring that you undertook last quarter, did you realize the full $2 million, $2.5 million benefit in Q4 from that? Was that fully baked in?

Question: Salman Zia Rana - TD Securities Inc - Analyst : That's fine. And as a follow-up to that, on the subsequent restructuring that you also announced on the call and in your results, how much of that was reflected in Q4? And how much of that is expected to save you guys going forward? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 16, 2025 / 1:45PM, ENGH.TO - Q4 2025 Enghouse Systems Ltd Earnings Call

Question: Salman Zia Rana - TD Securities Inc - Analyst : That's great color. And on M&A, again, you mentioned there are substantial M&A opportunities out there. Where -- in your pipeline, do you think you still have a lot of transformational assets because you've spoken about them over the last couple of years. So curious to get some color on that.

Question: Salman Zia Rana - TD Securities Inc - Analyst : Understood. And if I could just squeeze one more in. As part of your M&A pipeline, would AI acquisitions be something you'd be interested in? I think that would also augment what you're doing internally. So any thoughts on that? What kind of multiples you could potentially pay out there for those assets?

Question: Kevin McVeigh - UBS AG - Analyst : Great. Congratulations on the continued execution. I wonder, could you give us a sense of, I guess, a couple of things, could you continue to execute really well. Any sense of -- and it may be a little hard to dimensionalize, but how should we think about inorganic versus organic contribution over the course of '26? And any sense of when you would expect an inflection point in the revenue? And just tied into that, are you seeing a little bit more certainty amongst clients, as they're reacting to kind of Gen AI or any shift at the margin just given obviously, it feels like some of the euphoria is coming out of the broader Gen AI. Just are clients seeing any bit of just more certainty that allows you to react to that?

Question: Kevin McVeigh - UBS AG - Analyst : It's very, very helpful. And then just one quick one, and I'll get back in the queue. In terms of terrific pacing of the dividend, should we expect the same percentage or absolute dollar amount, well, not the dollar amount, but cents increase in the dividend in '26? And how are we thinking about that just relative to the capital allocation on the M&A?

Question: Paul Treiber - RBC Capital Markets Inc - Analyst : Just a question on the two groups, the professional services groups you're setting up. Is that primarily to generate professional services revenue? Or do you expect that there will be a longer-term attach in addition to professional services with potentially higher software revenue, both in IMG and AMG?

Question: Paul Treiber - RBC Capital Markets Inc - Analyst : And then what do you see is that the gap or the challenge with enterprises deploying AI? And then how do you hope to help your customers address that?