05:24 PM EDT, 06/05/2025 (MT Newswires) -- Enghouse Systems Limited ( EGHSF ) , which offers enterprise software solutions, after trade Thursday reported a fiscal second-quarter earnings and revenue miss as it cited "some demand-side hesitancy and delays in capital investment decisions" from its customer base and said acquisitions "remain a key pillar of our growth strategy".

The company said it earned $13.5 million, or $0.24 per share, in the quarter ended April 30, compared to near $20.0 million or $0.36, a year earlier. It missed a FactSet forecast of $0.37.

Revenue decreased 0.8% to $124.8 million from $125.8 million. This also missed a FactSet forecast of $129.5 million. But recurring revenue, which includes SaaS and maintenance services, rose 1.4% to $86.2 million compared to $85.0 million in Q2 2024, and represents 69.1% of total revenue.

Among other highlights, results from operating activities decreased to $25.1 million compared to $33.5 million in Q2 2024. Adjusted EBITDA decreased to $28.6 million compared to $35.7 million, while achieving a 22.9% margin.

Net cash provided by operating activities, excluding changes in working capital and income taxes paid, was $25.5 million compared to $38.6 million in Q2 2024 and $63.3 million year to date compared to $74.2 million in the comparable period. Cash, cash equivalents and short-term investments were $263.5 million as at April 30, 2025.

The company in its earnings statement said: "We have observed some demand-side hesitancy and delays in capital investment decisions from our customer base and remain focused on operational discipline, sustainable cash generation, and the integration of recent acquisitions to strengthen our foundation for future growth. We believe the current environment of global uncertainty creates opportunities, which combined with our strong cash position and proven experience with acquisitions, positions us well to act decisively.

Enghouse ( EGHSF ) shares closed down $0.46, or 1.7%, to $26.30 on the Toronto Stock Exchange.