SaaS Revenue Up 25%, Adjusted EBITDAⁱ Up 24%

MONTREAL, Sept. 4, 2025 /CNW/ -- Tecsys Inc. (TSX: TCS), an industry-leading supply chain management SaaS company, today announced its results for the first quarter of fiscal 2026, ended July 31, 2025. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS).

"We are pleased to begin the first quarter of fiscal 2026 with 25% SaaS revenue growth and a 24% increase in profitability over last year," said Peter Brereton, president and CEO of Tecsys. "Our pipeline has grown substantially over the summer months both on the new account side and expansions. The most successful user conference in our history was certainly a contributor with attendance rising by 25% over the previous conference. Our new location in Bangalore is up and running and already contributing to our results and our product development. We remain confident in our outlook for the remainder of fiscal 2026."

Mark Bentler, chief financial officer, added: "On top of our solid SaaS revenue growth in the quarter, we saw professional services revenue growth of 20% amid continuing robust implementation activity. Based on our first quarter performance and visibility for the balance of the year, we are maintaining our full fiscal 2026 guidance for total revenue growth, SaaS revenue growth, and Adjusted EBITDA margin ⁱ."

First Quarter Highlights:

• SaaS revenue increased by 25% to $19.1 million, up from $15.3 million in Q1 2025.
• SaaS ARRⁱⁱ increased by 21% to $79.3 million on July 31, 2025, compared to $65.8 million on July 31, 2024.
• SaaS Remaining Performance Obligation (RPOⁱⁱ) increased by 16% to $226.3 million at July 31, 2025, up from $194.9 million at the same time last year.
• Total revenue increased to $46.0 million compared to $42.3 million in Q1 2025.
• Net profit was $0.8 million ($0.05 per fully diluted share) in Q1 2026 and Q1 2025.
• Adjusted EBITDAⁱ was $3.2 million compared to $2.6 million reported in Q1 last year.
• In the first quarter of fiscal 2026, Tecsys acquired 21,300 of its outstanding common shares for approximately $0.8 million as part of its ongoing Normal Course Issuer Bid, compared to 59,600 common shares acquired in the same period last year for approximately $2.2 million.

Financial Guidance:

Tecsys is maintaining full fiscal year financial guidance as follows:

On September 4, 2025, the Company declared a quarterly dividend of $0.085 per share to be paid on October 3, 2025, to shareholders of record on September 19, 2025.

Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be "eligible" dividends.

Q1 2026 Financial Results Conference Call
Date: September 5, 2025
Time: 8:30 a.m. ET
Phone number: 800-836-8184 or 646-357-8785
The call can be replayed until September 12, 2025, by calling:
888-660-6345 or 646-517-4150 (access code: 21406#)

About Tecsys

Tecsys is a global provider of advanced supply chain solutions. With a commitment to innovation and customer success, the company equips organizations with the essential software, technology and expertise needed for operational excellence and competitive advantage. Its cloud solutions serve a diverse range of industries, including healthcare, distribution and converging commerce, across multiple complex, regulated and high-volume markets. Built on the Itopia® low-code application platform, Tecsys' offerings include enterprise resource planning, warehouse management, consolidated service management, distribution and transportation management, supply management at the point of use and order management solutions. Tecsys provides critical data insights and control across the supply chain, ensuring that organizations are agile, responsive and scalable. Tecsys is publicly traded on the Toronto Stock Exchange under the ticker symbol TCS. For more about Tecsys and its solutions, please visit www.tecsys.com.

Forward Looking Statements

The statements in this news release relating to matters that are not historical fact are forward-looking statements that are based on management's beliefs and assumptions. Such statements are not guarantees of future performance and are subject to a number of uncertainties, including but not limited to future economic conditions, the markets that Tecsys Inc. serves, the actions of competitors, major new technological trends, and other factors beyond the control of Tecsys Inc., which could cause actual results to differ materially from such statements. More information about the risks and uncertainties associated with Tecsys Inc.'s business can be found in the MD&A section of the Company's annual report and the most recently filed annual information form. These documents have been filed with the Canadian securities commissions and are available on our website (www.tecsys.com) and on SEDAR+ (www.sedarplus.ca).

Copyright © Tecsys Inc. 2025. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.

Non-IFRS Measures

Reconciliation of EBITDA and Adjusted EBITDA

EBITDA is calculated as earnings before interest expense, interest income, income taxes, depreciation and amortization. Adjusted EBITDA is calculated as EBITDA before stock-based compensation and restructuring costs. The exclusion of interest expense, interest income, income taxes and restructuring costs eliminates the impact on earnings derived from non-operational activities and non-recurring items, and the exclusion of depreciation, amortization and stock-based compensation eliminates the non-cash impact of these items.

The Company believes that these measures are useful measures of financial performance without the variation caused by the impacts of the items described above and that could potentially distort the analysis of trends in our operating performance. In addition, they are commonly used by investors and analysts to measure a company's performance, its ability to service debt and to meet other payment obligations, or as a common valuation measurement. Excluding these items does not imply that they are necessarily non-recurring. Management believes these non-IFRS financial measures, in addition to conventional measures prepared in accordance with IFRS, enable investors to evaluate the Company's operating results, underlying performance and future prospects in a manner similar to management. Although EBITDA and Adjusted EBITDA are frequently used by securities analysts, lenders and others in their evaluation of companies, they have limitations as an analytical tool, and should not be considered in isolation, or as a substitute for analysis of the Company's results as reported under IFRS.

The reconciliation of EBITDA and Adjusted EBITDA to the most directly comparable IFRS measure is provided below.

Do not sell my personal information