Enghouse Systems Falls 14% on Q2 2025 Earnings and Untether AI Ceases Supply and Product Support Following Deal with AMD
Enghouse Systems Navigates Tough Quarter Amid Slowing Demand and Untether AI Team to Join AMD in Strategic Transition
Enghouse Systems Navigates Tough Quarter Amid Slowing Demand
Enghouse Systems, a Canadian software serial acquirer in the contact center and communications space, released its Q2 2025 results earlier this month. Share price fell as much as 13.8% following the announcement, before recovering slightly to end the day down 9.2%.
During the earnings call, management highlighted a combination of macroeconomic pressures, including persistent geopolitical uncertainty, a volatile global economy, and shifting trade dynamics, as factors contributing to a slower demand environment in which customers are delaying their purchasing decisions.
Although Enghouse has incorporated AI into its solutions, the company is seeing limited traction in monetizing those features. Many clients are taking a wait-and-see approach to deploying AI at scale, which has dampened expectations for growth. Quarterly financial results were also muted, with revenue remaining mostly unchanged and adjusted EBITDA falling 20% year-over-year.
Once trading at $80 during the height of the pandemic-driven surge in demand for its software solutions, Enghouse’s shares have steadily declined over the past few years, reaching $22.64 as of June 23, 2025. While the company experienced a temporary boost in its financials in 2020, its performance since then has also been underwhelming, marked by stagnant sales and deteriorating margins.
Enghouse continues to make several acquisitions each year in pursuit of growth. Recently, it acquired Margento, a Mobility-as-a-Service platform, to diversify its portfolio. However, unless macroeconomic conditions improve and the company can reignite growth in top and bottom-line metrics, 2025 is shaping up to be another challenging year for Enghouse.
Disclosure: I own shares of Enghouse Systems.
Untether AI Announces Deal with AMD After Halting Operations
Untether AI, a Toronto-based AI chipmaker, has ceased supplying and supporting its products after entering into a strategic agreement with Advanced Micro Devices (AMD). While the financial terms have not been disclosed, Untether AI noted that its team will be joining AMD as part of the deal.
The company announced the deal with AMD in a brief company blog post, confirming it will no longer offer its speedAI® products and imAIgine® Software Development Kit (SDK). Additionally, Untether AI emphasized that while this marks the end of Untether AI’s journey, the team is proud of its pioneering work in advancing state-of-the-art AI chip technology and is optimistic about the future contributions its team will make with AMD.
AMD already has a strong Canadian presence, with operations in Toronto dating back to its 2006 acquisition of Markham-based graphics chipmaker ATI Technologies. The Untether AI deal marks AMD’s second acquisition in the same week, following its purchase of AI software optimization startup Brium.
Founded in 2018, Untether AI focused on developing inference chips designed to outperform competitors in both speed and efficiency. The company raised a total of $152 million USD ($208 million CAD) from investors including Intel, Tracker Capital, the Canada Pension Plan Investment Board, and Radical Ventures. Its most recent publicly announced funding round was a $ 125 million USD financing in 2021.
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