Tecsys Reports Financial Results for the First Quarter of Fiscal 2026

Tecsys Reports Financial Results for the First Quarter of Fiscal 2026 Canada NewsWire MONTREAL, Sept. 4, 2025 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: FY26 Guidance Total Revenue Growth 8-10% SaaS Revenue Growth 20-22% Adjusted EBITDAi Margin 8-9% 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#) i See Non-IFRS Performance Measures in Management's Discussion and Analysis of the Q1 2026 Interim Financial Statements. ii See Key Performance Indicators in Management's Discussion and Analysis of the Q1 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 July 31, Trailing 12 Months Ended July 31, (in thousands of CAD) 2025 2024 2025 2024 Net profit $ 762 $ 798 $ 4,423 $ 1,476 Adjustments for: Depreciation of property and equipment and right-of-use assets 329 371 1,431 1,464 Amortization of deferred development costs 281 197 853 638 Amortization of other intangible assets 543 334 1,513 1,431 Interest expense 11 25 68 150 Interest income (121) (217) (545) (963) Income taxes 625 436 3,165 218 EBITDA $ 2,430 $ 1,944 $ 10,908 $ 4,414 Adjustments for: Stock based compensation 784 647 3,088 2,496 Restructuring costs - - - 2,122 Adjusted EBITDAi $ 3,214 $ 2,591 $ 13,996 $ 9,032   Condensed Interim Consolidated Statements of Financial Position (Unaudited) (In thousands of Canadian dollars)   July 31, 2025 April 30, 2025 Assets Current assets Cash and cash equivalents $ 19,178 $ 27,580 Short-term investments 11,811 11,712 Accounts receivable 21,191 23,943 Work in progress 6,056 7,436 Other receivables 754 274 Tax credits 7,366 6,390 Inventory 2,060 1,870 Prepaid expenses and other 10,106 10,699 Total current assets 78,522 89,904   Non-current assets Other long-term receivables and assets 1,103 1,457 Tax credits 6,635 6,120 Property and equipment 1,493 1,164 Right-of-use assets 291 836 Contract acquisition costs 4,740 5,017 Deferred development costs 4,075 3,838 Other intangible assets 8,890 6,726 Goodwill 17,839 17,827 Deferred tax assets 7,557 7,521 Total non-current assets 52,623 50,506 Total assets $ 131,145 $ 140,410   Liabilities Current liabilities Accounts payable and accrued liabilities 18,728 22,367 Deferred revenue 41,095 45,025 Lease obligations 457 590 Total current liabilities 60,280 67,982   Non-current liabilities Other long-term accrued liabilities 160 33 Deferred tax liabilities 197 405 Lease obligations 189 728 Total non-current liabilities 546 1,166 Total liabilities $ 60,826 $ 69,148   Equity Share capital $ 57,939 $ 57,573 Contributed surplus 4,695 4,755 Retained earnings 7,201 7,700 Accumulated other comprehensive income 484 1,234 Total equity attributable to the owners of the Company 70,319 71,262 Total liabilities and equity $ 131,145 $ 140,410   Condensed Interim Consolidated Statements of Income and Comprehensive Income (Unaudited) (In thousands of Canadian dollars, except per share data)   Three Months Ended July 31, 2025 2024 Revenue: SaaS $ 19,139 $ 15,314 Maintenance and Support 7,857 8,715 Professional Services 16,039 13,387 License 89 861 Hardware 2,836 3,999 Total revenue 45,960 42,276 Cost of revenue 22,392 22,548 Gross profit 23,568 19,728 Operating expenses: Sales and marketing 10,316 8,352 General and administration 3,385 2,978 Research and development, net of tax credits 8,504 7,331 Total operating expenses 22,205 18,661 Profit from operations 1,363 1,067 Other income 24 167 Profit before income taxes 1,387 1,234 Income tax expense 625 436 Net profit $ 762 $ 798 Other comprehensive (loss) income: Effective portion of changes in fair value on designated revenue hedges (747) (20) Exchange differences on translation of foreign operations (3) 157 Comprehensive income $ 12 $ 935 Basic and diluted earnings per common share $ 0.05 $ 0.05   Condensed Interim Consolidated Statements of Cash Flows (Unaudited) (In thousands of Canadian dollars)   Three Months Ended July 31, 2025 2024 Cash flows from operating activities: Net profit $ 762 $ 798 Adjustments for: Depreciation of property and equipment and right-of-use-assets 329 371 Amortization of deferred development costs 281 197 Amortization of other intangible assets 543 334 Interest (income) expense and foreign exchange loss (24) (167) Unrealized foreign exchange and other (195) (123) Non-refundable tax credits (516) (429) Stock-based compensation 784 647 Income taxes 620 3 Net cash from operating activities excluding changes in non-cash working      capital items related to operations 2,584 1,631   Accounts receivable 2,753 2,434 Work in progress 1,381 (2,486) Other receivables and assets (580) (520) Tax credits (975) (1,034) Inventory (190) (714) Prepaid expenses 606 903 Contract acquisition costs 264 (39) Accounts payable and accrued liabilities (5,952) (3,119) Deferred revenue (4,548) (2,961) Changes in non-cash working capital items related to operations (7,241) (7,536) Net cash used in operating activities (4,657) (5,905) Cash flows from financing activities: Payment of lease obligations (217) (198) Interest paid (11) (25) Issuance of common shares on exercise of stock options 350 277 Shares repurchased and cancelled (828) (2,211) Net cash used in financing activities (706) (2,157) Cash flows from investing activities: Interest received 22 24 Transfers from short-term investments - 548 Acquisitions of property and equipment (568) (209) Acquisition of intangible assets (1,975) - Deferred development costs (518) (452) Net cash used in investing activities (3,039) (89) Net decrease in cash and cash equivalents during the period (8,402) (8,151) Cash and cash equivalents - beginning of period 27,580 18,856 Cash and cash equivalents - end of period $ 19,178 $ 10,705    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 - - - - 762 762 Other comprehensive (loss) income: Effective portion of changes in fair value on designated revenue hedges - - - (747) - (747) Exchange difference on translation of foreign operations - - - (3) - (3) Total comprehensive (loss) income - - - (750) 762 12 Shares repurchased and cancelled (21,300) (83) (745) - - (828) Stock-based compensation - - 784 - - 784 Dividends to equity owners - - - - (1,261) (1,261) Share options exercised 12,615 449 (99) - - 350 Total transactions with owners of the Company (8,685) $ 366 (60) $ - $ (1,261) $ (955) Balance, July 31, 2025 14,827,435 $ 57,939 4,695 $ 484 $ 7,201 $ 70,319 Balance, May 1, 2024 14,840,150 $ 52,256 9,417 $ (1,425) $ 8,121 $ 68,369 Net profit - - - - 798 798 Other comprehensive (loss) income: Effective portion of changes in fair value on designated revenue hedges - - - (20) - (20) Exchange difference on translation of foreign operations - - - 157 - 157 Total comprehensive income - - - 137 798 935 Shares repurchased and cancelled (59,600) (210) (2,001) - - (2,211) Stock-based compensation - - 647 - - 647 Dividends to equity owners - - - - (1,184) (1,184) Share options exercised 12,537 348 (71) - - 277 Total transactions with owners of the Company (47,063) $ 138 (1,425) $ - $ (1,184) $ (2,471) Balance, July 31, 2024 14,793,087 $ 52,394 7,992 $ (1,288) $ 7,735 $ 66,833   SOURCE Tecsys Inc. 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