Tecsys Reports Financial Results for the Second Quarter of Fiscal 2026

Tecsys Reports Financial Results for the Second Quarter of Fiscal 2026 Canada NewsWire MONTREAL, Dec. 3, 2025 SaaS Revenue Up 22%, Record Adjusted EBITDAi Up 71% MONTREAL, Dec. 3, 2025 /CNW/ -- Tecsys Inc. (TSX: TCS), an industry-leading supply chain management SaaS company, today announced its results for the second quarter of fiscal 2026, ended October 31, 2025. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS). "We are pleased with our second quarter performance, achieving record total revenue, record SaaS revenue and record Adjusted EBITDA – which was up 71% over the same period last year," said Peter Brereton, president and CEO of Tecsys. "While facing headwinds from the U.S. healthcare policy environment and government shutdown, as well as uncertainty created by shifting tariffs, we believe these results demonstrate our disciplined execution and the scalability of our business. This quarter we also made Elite™ available on AWS Marketplace, giving customers a faster, trusted way to buy and deploy our technology." Mark Bentler, chief financial officer, added: "On top of our solid SaaS revenue growth, up 22% compared to the second quarter last year, we hit a new record for professional services revenue which grew 20% compared to the same quarter last year amid continuing robust implementation activity in the quarter. While this demonstrates our ability to drive significant margins, we expect a moderation of professional services revenue in the coming quarter based on backlog levels as well as seasonality. For that reason and based on our first-half performance and visibility for remainder of the fiscal year, we are maintaining our full fiscal 2026 guidance for total revenue growth, SaaS revenue growth and Adjusted EBITDA margin."  Second Quarter Highlights: SaaS revenue increased by 22% to $19.7 million, up from $16.1 million in Q2 2025. SaaS ARRii increased by 16% to $81.1 million on October 31, 2025 compared to $69.8 million on October 31, 2024. SaaS Remaining Performance Obligation (RPOii) increased by 18% to $240.4 million at October 31, 2025, up from $203.8 million at the same time last year. Total revenue increased to a record $48.6 million compared to $42.4 million in Q2 2025. Net profit was $1.8 million ($0.12 per basic and fully diluted share) in Q2 2026 compared to a net profit of $0.8 million ($0.05 per basic and fully diluted share) for the same period in Q2 2025. Adjusted EBITDAi was $5.0 million compared to $2.9 million reported in Q2 last year. In the second quarter of fiscal 2026, Tecsys acquired 79,714 of its outstanding common shares for approximately $2.8 million as part of its ongoing Normal Course Issuer Bid, compared to 51,600 common shares acquired in the same period last year for approximately $2.1 million. Year-to-date performance for first half of fiscal 2026: SaaS revenue increased by 23% to $38.8 million, up from $31.4 million in the same period last year. Total revenue increased to $94.6 million compared to $84.7 million in the same period last year. Net profit was $2.5 million ($0.17 per basic and fully diluted share) in the first half of fiscal 2026 compared to a net profit of $1.6 million ($0.11 per basic share or $0.10 per fully diluted share) for the same period in fiscal 2025. Adjusted EBITDAi was $8.3 million compared to $5.5 million reported in the same period of fiscal 2025. In the first half of fiscal 2026, Tecsys acquired 101,014 of its outstanding common shares for approximately $3.6 million as part of its ongoing Normal Course Issuer Bid, compared to 111,200 common shares acquired in the same period last year for approximately $4.3 million. Financial Guidance: Tecsys is maintaining full fiscal year financial guidance as follows: FY26 Guidance Total Revenue Growth 8-10% SaaS Revenue Growth 20-22% Adjusted EBITDAi Margin 8-9% On December 3, 2025, the Company declared a quarterly dividend of $0.09 per share to be paid on January 6, 2026 to shareholders of record on December 17, 2025. Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be "eligible" dividends. Q2 2026 Financial Results Conference Call Date: December 4, 2025 Time: 8:30 a.m. ET Phone number: 800-836-8184 or 646-357-8785 The call can be replayed until December 11, 2025, by calling: 888-660-6345 or 646-517-4150 (access code: 34855#) i See Non-IFRS Performance Measures in Management's Discussion and Analysis of the Q2 2026 Interim Financial Statements. ii See Key Performance Indicators in Management's Discussion and Analysis of the Q2 2026 Interim Financial Statements. 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. Three Months Ended October 31, Six Months Ended October 31, Trailing 12 Months Ended October 31, (in thousands of CAD) 2025 2024 2025 2024 2025 2024 Net profit $ 1,766 $ 758 $ 2,528 $ 1,556 $ 5,431 $ 2,574 Adjustments for: Depreciation of property and equipment and right-of-use assets 332 377 661 748 1,386 1,464 Amortization of deferred development costs 281 198 562 395 936 689 Amortization of other intangible assets 529 328 1,072 662 1,714 1,365 Interest expense 7 24 18 49 51 121 Interest income (98) (163) (219) (380) (480) (873) Income taxes 1,150 427 1,775 863 3,888 726 EBITDA $ 3,967 $ 1,949 $ 6,397 $ 3,893 $ 12,926 $ 6,066 Adjustments for: Stock based compensation 1,073 993 1,857 1,640 3,168 2,765 Restructuring costs - - - - - 2,122 Adjusted EBITDAi $ 5,040 $ 2,942 $ 8,254 $ 5,533 $ 16,094 $ 10,953   Condensed Interim Consolidated Statements of Financial Position (Unaudited) (In thousands of Canadian dollars)   October 31, 2025 April 30, 2025 Assets Current assets Cash and cash equivalents $ 18,560 $ 27,580 Short-term investments 11,908 11,712 Accounts receivable 23,103 23,943 Work in progress 6,249 7,436 Other receivables 609 274 Tax credits 8,788 6,390 Inventory 1,901 1,870 Prepaid expenses and other 9,470 10,699 Total current assets 80,588 89,904   Non-current assets Other long-term receivables and assets 927 1,457 Tax credits 7,265 6,120 Property and equipment 1,753 1,164 Right-of-use assets 201 836 Contract acquisition costs 4,279 5,017 Deferred development costs 4,199 3,838 Other intangible assets 8,481 6,726 Goodwill 18,021 17,827 Deferred tax assets 7,998 7,521 Total non-current assets 53,124 50,506 Total assets $ 133,712 $ 140,410   Liabilities Current liabilities Accounts payable and accrued liabilities 21,175 22,367 Deferred revenue 42,824 45,025 Lease obligations 315 590 Total current liabilities 64,314 67,982   Non-current liabilities Other long-term accrued liabilities 906 33 Deferred tax liabilities 202 405 Lease obligations 122 728 Total non-current liabilities 1,230 1,166 Total liabilities $ 65,544 $ 69,148   Equity Share capital $ 57,624 $ 57,573 Contributed surplus 3,294 4,755 Retained earnings 7,711 7,700 Accumulated other comprehensive (loss) income (461) 1,234 Total equity attributable to the owners of the Company 68,168 71,262 Total liabilities and equity $ 133,712 $ 140,410   Condensed Interim Consolidated Statements of Income and Comprehensive Income (Unaudited) (In thousands of Canadian dollars, except per share data)   Three Months Ended October 31, Six Months Ended October 31, 2025 2024 2025 2024 Revenue: SaaS $ 19,654 $ 16,130 $ 38,793 $ 31,444 Maintenance and Support 7,702 7,703 15,559 16,418 Professional Services 17,000 14,145 33,039 27,532 License 93 444 182 1,305 Hardware 4,192 4,020 7,028 8,019 Total revenue 48,641 42,442 94,601 84,718 Cost of revenue 23,287 21,994 45,679 44,542 Gross profit 25,354 20,448 48,922 40,176 Operating expenses: Sales and marketing 9,908 9,052 20,224 17,404 General and administration 4,022 3,199 7,407 6,177 Research and development, net of tax credits 8,695 7,205 17,199 14,536 Total operating expenses 22,625 19,456 44,830 38,117 Profit from operations 2,729 992 4,092 2,059 Other income 187 193 211 360 Profit before income taxes 2,916 1,185 4,303 2,419 Income tax expense 1,150 427 1,775 863 Net profit $ 1,766 $ 758 $ 2,528 $ 1,556 Other comprehensive (loss) income: Effective portion of changes in fair value on designated revenue hedges, net of tax (1,221) (513) (1,968) (533) Exchange differences on translation of foreign operations 276 165 273 322 Comprehensive income $ 821 $ 410 $ 833 $ 1,345 Basic earnings per common share $ 0.12 $ 0.05 $ 0.17 $ 0.11 Diluted earnings per common share $ 0.12 $ 0.05 $ 0.17 $ 0.10   Condensed Interim Consolidated Statements of Cash Flows (Unaudited) (In thousands of Canadian dollars)   Three Months Ended October 31, Six Months Ended October 31, 2025 2024 2025 2024 Cash flows from operating activities: Net profit $ 1,766 $ 758 $ 2,528 $ 1,556 Adjustments for: Depreciation of property and equipment and right-of-use-assets 332 377 661 748 Amortization of deferred development costs 281 198 562 395 Amortization of other intangible assets 529 328 1,072 662 Interest (income) expense and foreign exchange (gain) (187) (193) (211) (360) Unrealized foreign exchange and other 184 206 (11) 83 Non-refundable tax credits (630) (505) (1,146) (934) Stock-based compensation 1,073 993 1,857 1,640 Income taxes 620 184 1,240 187 Net cash from operating activities excluding changes in non-cash working capital items related to operations 3,968 2,346 6,552 3,977 Accounts receivable (1,810) (2,132) 943 302 Work in progress (174) 2,245 1,207 (241) Other receivables and assets 61 84 (519) (436) Tax credits (1,422) (1,325) (2,397) (2,359) Inventory 160 (40) (30) (754) Prepaid expenses 652 60 1,258 963 Contract acquisition costs 455 119 719 80 Accounts payable and accrued liabilities 2,212 1,119 (3,740) (2,000) Deferred revenue 1,708 3,652 (2,840) 691 Changes in non-cash working capital items related to operations 1,842 3,782 (5,399) (3,754) Net cash provided by operating activities 5,810 6,128 1,153 223 Cash flows from financing activities: Payment of lease obligations (214) (204) (431) (402) Payment of dividends (2,517) (2,368) (2,517) (2,368) Interest paid (7) (24) (18) (49) Issuance of common shares on exercise of stock options - 320 350 597 Shares repurchased and cancelled (2,789) (2,101) (3,617) (4,312) Net cash used in financing activities (5,527) (4,377) (6,233) (6,534) Cash flows from investing activities: Interest received 1 3 23 27 Transfers from short-term investments - 5,022 - 5,570 Acquisitions of property and equipment (497) (200) (1,065) (409) Acquisition of intangible assets - - (1,975) - Deferred development costs (405) (433) (923) (885) Net cash (used in) provided by investing activities (901) 4,392 (3,940) 4,303 Net (decrease) increase in cash and cash equivalents during the period (618) 6,143 (9,020) (2,008) Cash and cash equivalents - beginning of period 19,178 10,705 27,580 18,856 Cash and cash equivalents - end of period $ 18,560 $ 16,848 $ 18,560 $ 16,848   Condensed Interim Consolidated Statements of Changes in Equity (Unaudited) (In thousands of Canadian dollars, except number of shares)   Share capital Number Amount Contributed Surplus Accumulated other comprehensive income (loss) Retained earnings Total Balance, May 1, 2025 14,836,120 $ 57,573 $ 4,755 $ 1,234 $ 7,700 $ 71,262 Net profit - - - - 2,528 2,528 Other comprehensive (loss) income: Effective portion of changes in fair value on designated revenue hedges - - - (1,968) - (1,968) Exchange difference on translation of foreign operations - - - 273 - 273 Total comprehensive (loss) income - - - (1,695) 2,528 833 Shares repurchased and cancelled (101,014) (398) (3,219) - - (3,617) Stock-based compensation - - 1,857 - - 1,857 Dividends to equity owners - - - - (2,517) (2,517) Share options exercised 12,615 449 (99) - - 350 Total transactions with owners of the Company (88,399) $ 51 $ (1,461) $ - $ (2,517) $ (3,927) Balance, October 31, 2025 14,747,721 $ 57,624 $ 3,294 $ (461) $ 7,711 $ 68,168 Balance, May 1, 2024 14,840,150 $ 52,256 $ 9,417 $ (1,425) $ 8,121 $ 68,369 Net profit - - - - 1,556 1,556 Other comprehensive (loss) income: Effective portion of changes in fair value on designated revenue hedges - - - (533) - (533) Exchange difference on translation of foreign operations - - - 322 - 322 Total comprehensive income - - - (211) 1,556 1,345 Shares repurchased and cancelled (111,200) (394) (3,918) - - (4,312) Stock-based compensation - - 1,640 - - 1,640 Dividends to equity owners - - - - (2,368) (2,368) Share options exercised 23,899 766 (169) - - 597 Total transactions with owners of the Company (87,301) $ 372 $ (2,447) $ - $ (2,368) $ (4,443) Balance, October 31, 2024 14,752,849 $ 52,628 $ 6,970 $ (1,636) $ 7,309 $ 65,271   SOURCE Tecsys Inc. 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