Tecsys Reports Financial Results for the Third Quarter of Fiscal 2026

Tecsys Reports Financial Results for the Third Quarter of Fiscal 2026 Canada NewsWire MONTREAL, March 4, 2026 Record Adjusted EBITDAi Up 43% MONTREAL, March 4, 2026 /CNW/ -- Tecsys Inc. (TSX: TCS), an industry-leading supply chain management company, today announced its results for the third quarter of fiscal 2026, ended January 31, 2026. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS). "We are very pleased with our third quarter performance, once again delivering record SaaS revenue and record Adjusted EBITDA, which increased 43% over the same period last year," said Peter Brereton, president and CEO of Tecsys. "We also saw strong SaaS bookings across both our healthcare and general distribution verticals during the quarter, with new logo wins leading the way. This was the largest Q3 bookings quarter in our history, and it was achieved without any migration bookings, which we believe underscores the demand for our core offerings and the strength of our pipeline." "During the quarter, TecsysIQ became commercially available. Our AI intelligence layer unifies data from multiple sources, turns it into clear and actionable insights, and enables autonomous execution. This capability significantly amplifies the value of our core enterprise systems, empowering customers to unlock the full potential of AI and improve operational performance. We are encouraged by the early momentum and the expanding role TecsysIQ will play in delivering measurable supply chain value." Mark Bentler, chief financial officer, added, "Subsequent to the end of the third quarter, we implemented a workforce reduction of approximately 7% as part of a broader initiative to optimize the Company's operations. This action will result in an estimated restructuring charge of $4.5 million, to be recorded in the fourth quarter of fiscal 2026 and is expected to generate approximately $8.1 million in annual operating cost savings. These measures further reinforce our commitment to operational efficiency. Based on our performance through the first three quarters and our outlook for the remainder of the year, we are reaffirming our full‑year fiscal 2026 guidance for total revenue growth, SaaS revenue growth and Adjusted EBITDA margin."  Third Quarter Highlights: SaaS revenue increased by 17% to $20.1 million, up from $17.3 million in Q3 2025. SaaS ARRii increased by 10% to $83.3 million on January 31, 2026 compared to $75.4 million on January 31, 2025. SaaS Remaining Performance Obligation (RPOii) increased by 18% to $248.9 million at January 31, 2026, up from $210.2 million at the same time last year. Total revenue increased to $48.5 million compared to $45.2 million in Q3 2025. Net profit was $1.7 million ($0.12 per basic and fully diluted share) in Q3 2026 compared to a net profit of $1.2 million ($0.08 per basic and fully diluted share) in Q3 2025. Adjusted EBITDAi was $5.0 million compared to $3.5 million reported in Q3 last year. In the third quarter of fiscal 2026, Tecsys acquired 115,000 of its outstanding common shares for approximately $3.7 million as part of its ongoing Normal Course Issuer Bid, compared to 38,200 common shares acquired in the same period last year for approximately $1.7 million. Year-to-date performance for first nine months of fiscal 2026: SaaS revenue increased by 21% to $58.9 million, up from $48.7 million in the same period last year. Total revenue increased to $143.1 million compared to $129.9 million in the same period last year. Net profit was $4.3 million ($0.29 per basic and fully diluted share) in the first nine months of fiscal 2026 compared to a net profit of $2.7 million ($0.19 per basic share or $0.18 per fully diluted share) for the same period in fiscal 2025. Adjusted EBITDAi was $13.3 million compared to $9.1 million reported in the same period of fiscal 2025. In the first nine months of fiscal 2026, Tecsys acquired 216,014 of its outstanding common shares for approximately $7.3 million as part of its ongoing Normal Course Issuer Bid, compared to 149,400 common shares acquired in the same period last year for approximately $6.0 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 March 4, 2026, the Company declared a quarterly dividend of $0.09 per share to be paid on April 15, 2026 to shareholders of record on March 25, 2026. Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be "eligible" dividends. Q3 2026 Financial Results Conference Call Date: March 5, 2026 Time: 8:30 a.m. ET Phone number: 800-836-8184 or 646-357-8785 The call can be replayed until March 12, 2026, by calling: 888-660-6345 or 646-517-4150 (access code: 86247#) i See Non-IFRS Performance Measures in Management's Discussion and Analysis of the Q3 2026 Interim Financial Statements. ii See Key Performance Indicators in Management's Discussion and Analysis of the Q3 2026 Interim Financial Statements. About Tecsys Tecsys is trusted by mission-critical organizations in healthcare and distribution to power resilient, efficient and secure supply chains. A global provider of cloud-based, AI-driven software with deep domain expertise, Tecsys delivers real-time operational visibility and execution across critical workflows when performance and reliability matter most. Tecsys is publicly traded on the Toronto Stock Exchange (TSX). For more information, 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. 2026. 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 January 31, Nine Months Ended January 31, Trailing 12 Months Ended January 31, (in thousands of CAD) 2026 2025 2026 2025 2026 2025 Net profit $ 1,734 $ 1,193 $ 4,262 $ 2,749 $ 5,972 $ 3,008 Adjustments for: Depreciation of property and equipment and right-of-use assets 401 376 1,062 1,124 1,411 1,485 Amortization of deferred development costs 275 190 837 585 1,021 732 Amortization of other intangible assets 528 322 1,600 984 1,920 1,331 Interest expense 64 18 82 67 97 94 Interest income (86) (150) (305) (530) (416) (763) Income taxes 1,304 811 3,079 1,674 4,381 893 EBITDA $ 4,220 $ 2,760 $ 10,617 $ 6,653 $ 14,386 $ 6,780 Adjustments for: Stock based compensation 826 775 2,683 2,415 3,219 2,946 Restructuring costs - - - - - 2,122 Adjusted EBITDAi $ 5,046 $ 3,535 $ 13,300 $ 9,068 $ 17,605 $ 11,848   Condensed Interim Consolidated Statements of Financial Position (Unaudited) (In thousands of Canadian dollars) January 31, 2026 April 30, 2025 Assets Current assets Cash and cash equivalents $ 24,237 $ 27,580 Short-term investments 11,993 11,712 Accounts receivable 22,729 23,943 Work in progress 4,068 7,436 Other receivables 936 274 Tax credits 5,285 6,390 Inventory 1,667 1,870 Prepaid expenses and other 11,171 10,699 Total current assets 82,086 89,904   Non-current assets Other long-term receivables and assets 3,221 1,457 Tax credits 8,099 6,120 Property and equipment 4,735 1,164 Right-of-use assets 2,506 836 Contract acquisition costs 4,945 5,017 Deferred development costs 4,551 3,838 Other intangible assets 7,942 6,726 Goodwill 18,006 17,827 Deferred tax assets 6,876 7,521 Total non-current assets 60,881 50,506 Total assets $ 142,967 $ 140,410   Liabilities Current liabilities Accounts payable and accrued liabilities 23,477 22,367 Deferred revenue 45,017 45,025 Lease obligations 415 590 Total current liabilities 68,909 67,982   Non-current liabilities Other long-term accrued liabilities - 33 Deferred tax liabilities 202 405 Lease obligations 4,884 728 Total non-current liabilities 5,086 1,166 Total liabilities $ 73,995 $ 69,148   Equity Share capital $ 57,426 $ 57,573 Contributed surplus 797 4,755 Retained earnings 8,122 7,700 Accumulated other comprehensive income 2,627 1,234 Total equity attributable to the owners of the Company 68,972 71,262 Total liabilities and equity $ 142,967 $ 140,410   Condensed Interim Consolidated Statements of Income and Comprehensive Income Unaudited) (In thousands of Canadian dollars, except per share data) Three Months Ended January 31, Nine Months Ended January 31, 2026 2025 2026 2025 Revenue: SaaS $ 20,131 $ 17,252 $ 58,924 $ 48,696 Maintenance and Support 7,752 8,142 23,311 24,560 Professional Services 14,976 13,920 48,015 41,452 License 595 212 777 1,517 Hardware 5,042 5,655 12,070 13,674 Total revenue 48,496 45,181 143,097 129,899 Cost of revenue 23,895 23,907 69,574 68,449 Gross profit 24,601 21,274 73,523 61,450 Operating expenses: Sales and marketing 9,821 9,053 30,045 26,457 General and administration 3,521 3,096 10,928 9,273 Research and development, net of tax credits 8,077 7,114 25,276 21,650 Total operating expenses 21,419 19,263 66,249 57,380 Profit from operations 3,182 2,011 7,274 4,070 Other (costs) income (144) (7) 67 353 Profit before income taxes 3,038 2,004 7,341 4,423 Income tax expense 1,304 811 3,079 1,674 Net profit $ 1,734 $ 1,193 $ 4,262 $ 2,749 Other comprehensive income (loss): Effective portion of changes in fair value on designated revenue hedges, net of tax 3,109 (5,188) 1,141 (5,721) Exchange differences on translation of foreign operations (21) (90) 252 232 Comprehensive income (loss) $ 4,822 $ (4,085) $ 5,655 $ (2,740) Basic earnings per common share $ 0.12 $ 0.08 $ 0.29 $ 0.19 Diluted earnings per common share $ 0.12 $ 0.08 $ 0.29 $ 0.18   Condensed Interim Consolidated Statements of Cash Flows (Unaudited) (In thousands of Canadian dollars) Three Months Ended January 31, Nine Months Ended January 31, 2026 2025 2026 2025 Cash flows from operating activities: Net profit $ 1,734 $ 1,193 $ 4,262 $ 2,749 Adjustments for: Depreciation of property and equipment and right-of-use-assets 401 376 1,062 1,124 Amortization of deferred development costs 275 190 837 585 Amortization of other intangible assets 528 322 1,600 984 Interest expense (income) and foreign exchange loss 144 7 (67) (353) Unrealized foreign exchange and other (591) 516 (602) 599 Non-refundable tax credits (833) (1,008) (1,979) (1,942) Stock-based compensation 826 775 2,683 2,415 Income taxes 1,121 34 2,361 221 Net cash from operating activities excluding changes in non-cash working capital items related to operations 3,605 2,405 10,157 6,382 Accounts receivable 327 269 1,270 571 Work in progress 2,175 (2,563) 3,382 (2,804) Other receivables and assets (393) 90 (912) (346) Tax credits 3,502 3,338 1,105 979 Inventory 234 178 204 (576) Prepaid expenses (1,685) (1,534) (427) (571) Contract acquisition costs (682) (251) 37 (171) Accounts payable and accrued liabilities 2,762 3,111 (978) 1,111 Deferred revenue 2,194 1,764 (646) 2,455 Changes in non-cash working capital items related to operations 8,434 4,402 3,035 648 Net cash provided by operating activities 12,039 6,807 13,192 7,030 Cash flows from financing activities: Payment of lease obligations (112) (205) (543) (607) Payment of dividends (1,323) (1,251) (3,840) (3,619) Interest paid (6) (18) (24) (67) Issuance of common shares on exercise of stock options 181 971 531 1,568 Shares repurchased and cancelled (3,702) (1,679) (7,319) (5,991) Net cash used in financing activities (4,962) (2,182) (11,195) (8,716) Cash flows from investing activities: Interest received 1 32 24 59 Transfers from short-term investments - - - 5,570 Acquisitions of property and equipment (774) (88) (1,839) (497) Acquisition of intangible assets - - (1,975) - Deferred development costs (627) (447) (1,550) (1,332) Net cash (used in) provided by investing activities (1,400) (503) (5,340) 3,800 Net increase (decrease) in cash and cash equivalents during the period 5,677 4,122 (3,343) 2,114 Cash and cash equivalents - beginning of period 18,560 16,848 27,580 18,856 Cash and cash equivalents - end of period $ 24,237 $ 20,970 $ 24,237 $ 20,970   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 - - - - 4,262 4,262 Other comprehensive income: Effective portion of changes in fair value on designated revenue hedges - - - 1,141 - 1,141 Exchange difference on translation of foreign operations - - - 252 - 252 Total comprehensive income - - - 1,393 4,262 5,655 Shares repurchased and cancelled (216,014) (848) (6,471) - - (7,319) Stock-based compensation - - 2,683 - - 2,683 Dividends to equity owners - - - - (3,840) (3,840) Share options exercised 19,723 701 (170) - - 531 Total transactions with owners of the Company (196,291) $ (147) $ (3,958) $ - $ (3,840) $ (7,945) Balance, January 31, 2026 14,639,829 $ 57,426 $ 797 $ 2,627 $ 8,122 $ 68,972 Balance, May 1, 2024 14,840,150 $ 52,256 $ 9,417 $ (1,425) $ 8,121 $ 68,369 Net profit - - - - 2,749 2,749 Other comprehensive (loss) income: Effective portion of changes in fair value on designated revenue hedges - - - (5,721) - (5,721) Exchange difference on translation of foreign operations - - - 232 - 232 Total comprehensive (loss) income - - - (5,489) 2,749 (2,740) Shares repurchased and cancelled (149,400) (531) (5,460) - - (5,991) Stock-based compensation - - 2,415 - - 2,415 Dividends to equity owners - - - - (3,619) (3,619) Share options exercised 53,337 2,063 (495) - - 1,568 Total transactions with owners of the Company (96,063) $ 1,532 $ (3,540) $ - $ (3,619) $ (5,627) Balance, January 31, 2025 14,744,087 $ 53,788 $ 5,877 $ (6,914) $ 7,251 $ 60,002   SOURCE Tecsys Inc. 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