Sylogist Appoints Joel Leetzow as New CEO

• Sylogist Ltd. has appointed Joel Leetzow as its new Chief Executive Officer, effective immediately on May 19, 2026.
• Mr. Leetzow succeeds Craig O'Neill, who served as Interim President and CEO since January 2026 following Bill Wood's departure.
• The appointment aims to drive operational execution, accelerate customer value creation, and position the company for long-term growth and profitability.
• Leetzow brings over 35 years of experience in technology companies, including a turnaround at Cortex Business Solutions that increased enterprise value by 4.5x prior to its sale.
• This follows the resolution of a proxy contest with activist shareholder OneMove Capital (15% stake) where the Board retained control following ISS endorsement and shareholder vote on May 12, 2026.

• Governance Stability: The appointment resolves the leadership vacuum created by the interim period and the recent proxy battle. While the search was public knowledge since January 2026, securing a permanent CEO with specific turnaround experience validates the Board's strategy over OneMove's demands.
• Execution Risk Mitigation: Leetzow's background in SaaS transformation is directly relevant to Sylogist's current pivot from project services to recurring revenue. This reduces execution risk associated with the interim management team.
• Financial Context: The news comes immediately after Q1 2026 earnings which were materially negative (revenue down 9.7%, dividend suspended). While positive for governance, it does not immediately address the financial deterioration or cash burn concerns.
• Market Expectation: Given the public search process and interim leadership in place since January, this is largely an expected outcome rather than a surprise catalyst. The market has already priced in the transition risk during the proxy battle period.

• Business Model: Sylogist operates as a SaaS provider focused on the public sector (government, education, nonprofit) with a transition strategy from project services to recurring subscription revenue.
• Flagship Projects: Key initiatives include the Texas Victim Services System (VSS), Gov ERP solutions, and SylogistEd. The VSS implementation is at 92% completion as of Q1 2026.
• Revenue Mix: Recurring revenue represents 75% of total revenue in Q1 2026, up from 67% prior year, indicating progress in the transformation strategy despite top-line decline.
• SaaS ARR: SaaS Annual Recurring Revenue grew 7% YoY to $33.6 million in Q1 2026, though total ARR growth was only 3%.