Tecsys Reports Financial Results for the First Quarter of Fiscal 2026

Executive Summary

• Tecsys Inc. reported financial results for the first quarter of fiscal 2026 (ended July 31, 2025), highlighting strong growth in SaaS metrics and profitability.
• SaaS revenue increased by 25% year-over-year to $19.1 million, while Adjusted EBITDA rose 24% to $3.2 million.
• The company maintained its full fiscal 2026 guidance for total revenue growth (8-10%), SaaS revenue growth (20-22%), and Adjusted EBITDA margin (8-9%).

Key Details

• SaaS Revenue: Increased 25% to $19.1 million (from $15.3 million in Q1 2025).
• SaaS ARR: Increased 21% to $79.3 million (from $65.8 million in Q1 2025).
• SaaS RPO: Increased 16% to $226.3 million (from $194.9 million in Q1 2025).
• Total Revenue: Increased to $46.0 million (from $42.3 million in Q1 2025).
• Net Profit: $0.8 million ($0.05 per fully diluted share), flat compared to Q1 2025.
• Adjusted EBITDA: $3.2 million, up from $2.6 million in Q1 2025.
• Professional Services Revenue: Grew 20% year-over-year.
• Share Repurchases: Acquired 21,300 common shares for approximately $0.8 million as part of the Normal Course Issuer Bid (compared to 59,600 shares for $2.2 million in Q1 2025).
• FY26 Guidance Maintained:
  • Total Revenue Growth: 8-10%
  • SaaS Revenue Growth: 20-22%
  • Adjusted EBITDA Margin: 8-9%
• Dividend Declaration: Declared a quarterly dividend of $0.085 per share, payable October 3, 2025, to shareholders of record on September 19, 2025.
• Balance Sheet Highlights (as of July 31, 2025):
  • Cash and cash equivalents: $19.2 million.
  • Total Assets: $131.1 million.
  • Total Liabilities: $60.8 million.
  • Total Equity: $70.3 million.
• Cash Flow Highlights (Q1 2026):
  • Net cash used in operating activities: $(4.7) million.
  • Net cash used in financing activities: $(0.7) million.
  • Net cash used in investing activities: $(3.0) million.

Notable Quotes

• Peter Brereton, President and CEO: "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... 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: "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."