EliteTM SaaS Revenueii Up 21% Driving Record Revenue Quarter, Adjusted EBITDAi Up 56%
MONTREAL, June 29, 2026 /CNW/ -- Tecsys Inc. (TSX:TCS), an industry-leading supply chain management company, today announced its results for the fourth quarter and full year of fiscal 2026, ended April 30, 2026. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS).
"Fiscal 2026 reinforced the critical role supply chain execution plays in helping organizations operate with confidence in increasingly complex environments," said Peter Brereton, President and CEO at Tecsys. "Resilience, visibility and execution confidence have become baseline expectations, and we continue to see strong engagement across our customer base — including record participation at our recent Tecsys User Conference — reinforcing demand for more connected, intelligent supply chain operations. Building on our strong SaaS foundation, we continue to advance AI-driven capabilities, including TecsysIQ, to better connect data, workflows and decisions in real time. We enter fiscal 2027 with a strong recurring revenue base and confidence in the opportunities ahead."
Mark Bentler, Chief Financial Officer of Tecsys, added, "We closed fiscal 2026 with a strong fourth quarter, delivering record revenue of $50 million, Elite™ SaaS revenue growth of 21% and record Adjusted EBITDA of $6.7 million. Our fiscal 2026 total revenue growth and SaaS revenue growth were in line with our financial guidance. Our fiscal 2026 Adjusted EBITDA margin was 10%, ahead of our financial guidance of 8-9%. Today we are providing fiscal 2027 financial guidance with continued revenue growth and Adjusted EBITDA margin expansion."
Fourth Quarter Highlights:
- Total SaaS revenue increased by 17% to $21.5 million, up from $18.4 million in Q4 2025. EliteTM SaaS revenueii increased by 21% compared to Q4 last year.
- Total SaaS ARRiii increased by 13% (15% on a constant currency basisiii) to $86.8 million on April 30, 2026, compared to $76.5 million on April 30, 2025. EliteTM SaaS ARRiii increased by 19% (21% on a constant currency basis).
- Total SaaS Remaining Performance Obligation (RPOii) increased by 12% (14% on a constant currency basisii) to $243.0 million at April 30, 2026, up from $216.7 million at the same time last year.
- Total revenue increased to a record $50.0 million compared to $46.6 million in Q4 2025.
- Net loss was $0.2 million ($0.02 basic and diluted loss per share) in Q4 2026, compared to a net profit of $1.7 million ($0.12 basic earnings per share and $0.11 diluted earnings per share) for the same period in fiscal 2025. Restructuring costs of $4.7 million (pre-tax) were recognized during the quarter.
- Adjusted net profit i was $3.2 million in Q4 2026, compared to $1.7 million for the same period in fiscal 2025.
- Adjusted EBITDAi was $6.7 million compared to $4.3 million reported in Q4 last year.
- In the fourth quarter of fiscal 2026, Tecsys acquired 207,800 of its outstanding common shares for approximately $5.9 million as part of its ongoing Normal Course Issuer Bid, compared to 22,800 common shares acquired in the same period last year for approximately $0.9 million.
Fiscal 2026 Highlights:
- Total SaaS revenue increased by 20% to $80.4 million, up from $67.1 million in fiscal 2025. EliteTM SaaS revenueii increased by 24% compared to last year.
- Total revenue increased to a record $193.1 million compared to $176.5 million in fiscal 2025.
- Net profit was $4.0 million ($0.27 basic and diluted earnings per share) in fiscal 2026, compared to $4.5 million ($0.30 basic and diluted earnings per share) in fiscal 2025.
- Adjusted net profit i was $7.5 million in fiscal 2026, compared to $4.5 million in fiscal 2025.
- Adjusted EBITDAi was $20.0 million compared to $13.4 million in fiscal 2025.
- In Fiscal 2026, Tecsys acquired 423,814 of its outstanding common shares for approximately $13.2 million as part of its ongoing Normal Course Issuer Bid, compared to 172,200 common shares acquired in the same period last year for approximately $6.9 million.
i See Non-IFRS Performance Measures in Management's Discussion and Analysis of the 2026 Financial Statements.
ii EliteTM SaaS Revenue refers to our core product and the predominant contributor to total SaaS Revenue.
iii See Key Performance Indicators in Management's Discussion and Analysis of the 2026 Financial Statements.
Financial Guidance:
"Total revenue growth guidance reflects sustained SaaS revenue growth and stable professional services and hardware revenue, partially offset by ongoing declines in legacy maintenance revenue, including the effects of SaaS migrations," noted Mark Bentler, Chief Financial Officer of Tecsys. "To provide investors with greater visibility into the performance of our core growth engine, we are introducing guidance for EliteTM SaaS revenueii Growth."
Tecsys is providing financial guidance as follows:
FY27 Guidance | Total Revenue Growth 2-4% | EliteTM SaaS Revenueii Growth 18-20% | Total SaaS Revenue Growth 13-15% | Adjusted EBITDAi Margin 11-13% |
On June 29, 2026, the Company declared a quarterly dividend of $0.09 per share to be paid on August 4, 2026, to shareholders of record on July 10, 2026.
Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be "eligible" dividends.
Q4 and FY2026 Financial Results Conference Call
Date: June 30, 2026
Time: 8:30 a.m. ET
Phone number: 800-836-8184 or 646-357-8785
The call can be replayed until July 7, 2026, by calling:
888-660-6345 or 646-517-4150 (access code: 11868#)
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 April 30, Year ended April 30, | (in thousands of CAD) 2026 2025 2026 2025 2024 | Net (loss) profit for the period $ (224) $ 1,710 $ 4,038 $ 4,459 $ 1,849 | Adjustments for: | Depreciation of property and equipment and right-of-use assets 355 349 1,417 1,473 1,477 | Amortization of deferred development costs 245 184 1,082 769 583 | Amortization of other intangible assets 524 320 2,124 1,304 1,493 | Interest expense 61 15 143 82 163 | Interest income (159) (111) (464) (641) (1,015) | Income taxes 571 1,302 3,650 2,976 641 | EBITDA $ 1,373 $ 3,769 $ 11,990 $ 10,422 $ 5,191 | Adjustments for: | Stock based compensation 706 536 3,389 2,951 2,301 | Restructuring costs 4,652 - 4,652 - 2,122 | Adjusted EBITDA $ 6,731 $ 4,305 $ 20,031 $ 13,373 $ 9,614 |
Adjusted net profit
Adjusted net profit represents net profit adjusted to exclude restructuring costs, net of related tax benefits which are determined based on statutory income tax rates.
The Company believes that this measure is a useful measure of financial performance without the variation caused by the impact of the restructuring costs, net of tax, described above.
The reconciliation of Adjusted net profit to the most directly comparable IFRS measure is provided below.
Three months ended April 30, Year ended April 30, | (in thousands of CAD) 2026 2025 2026 2025 2024 | Net (loss) profit $ (224) $ 1,710 $ 4,038 $ 4,459 $ 1,849 | Adjustments for: | Restructuring costs 4,652 - 4,652 - 2,122 | Tax benefit related to restructuring costs (1,233) - (1,233) - (562) | Adjusted net profit $ 3,195 $ 1,710 $ 7,457 $ 4,459 $ 3,409 |
Consolidated Statements of Financial Position(In thousands of Canadian dollars) | April 30, 2026 April 30, 2025 | Assets | Current assets | Cash and cash equivalents $ 19,133 $ 27,580 | Short-term investments 12,077 11,712 | Accounts receivable 28,425 23,943 | Work in progress 5,681 7,436 | Other receivables 818 274 | Tax credits 6,193 6,390 | Inventory 1,167 1,870 | Prepaid expenses and other 11,292 10,699 | Total current assets 84,786 89,904 | Non-current assets | Other long-term receivables and assets 3,188 1,457 | Tax credits 6,978 6,120 | Property and equipment 4,824 1,164 | Right-of-use assets 2,409 836 | Contract acquisition costs 5,084 5,017 | Deferred development costs 4,965 3,838 | Other intangible assets 7,356 6,726 | Goodwill 17,901 17,827 | Deferred tax assets 5,516 7,521 | Total non-current assets 58,221 50,506 | Total assets $ 143,007 $ 140,410 | Liabilities | Current liabilities | Accounts payable and accrued liabilities 21,191 22,367 | Deferred revenue 54,050 45,025 | Lease obligations 531 590 | Total current liabilities 75,772 67,982 | Non-current liabilities | Other long-term accrued liabilities - 33 | Deferred tax liabilities 200 405 | Lease obligations 4,759 728 | Total non-current liabilities 4,959 1,166 | Total liabilities $ 80,731 $ 69,148 | Equity | Share capital $ 56,691 $ 57,573 | Contributed surplus - 4,755 | Retained earnings 2,971 7,700 | Accumulated other comprehensive income 2,614 1,234 | Total equity attributable to the owners of the Company 62,276 71,262 | Total liabilities and equity $ 143,007 $ 140,410 |
Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income (In thousands of Canadian dollars, except per share data) | Three Months Ended Twelve Months Ended | April 30, April 30, | 2026 2025 2026 2025 | Revenue: | SaaS $ 21,488 $ 18,375 $ 80,412 $ 67,071 | Maintenance and Support 7,383 7,910 30,694 32,470 | Professional Services 15,792 16,213 63,807 57,665 | License 302 294 1,079 1,811 | Hardware 5,080 3,763 17,150 17,437 | Total revenue 50,045 46,555 193,142 176,454 | Cost of revenue 24,020 22,712 93,594 91,161 | Gross profit 26,025 23,843 99,548 85,293 | Operating expenses: | Sales and marketing 9,493 9,695 39,538 36,152 | General and administration 3,613 3,373 14,541 12,646 | Research and development, net of tax credits 7,788 7,665 33,064 29,315 | Restructuring costs 4,652 - 4,652 - | Total operating expenses 25,546 20,733 91,795 78,113 | Profit from operations 479 3,110 7,753 7,180 | Other (costs) income (132) (98) (65) 255 | Profit before income taxes 347 3,012 7,688 7,435 | Income tax expense 571 1,302 3,650 2,976 | Net (loss) profit $ (224) $ 1,710 $ 4,038 $ 4,459 | Other comprehensive (loss) income: | Effective portion of changes in fair value on designated cash flow hedges, net of tax 128 7,662 1,269 1,941 | Exchange differences on translation of foreign operations (141) 486 111 718 | Comprehensive (loss) income $ (237) $ 9,858 $ 5,418 $ 7,118 | Basic earnings per common share $ (0.02) $ 0.12 $ 0.27 $ 0.30 | Diluted earnings per common share $ (0.02) $ 0.11 $ 0.27 $ 0.30 |
Consolidated Statements of Cash Flows (In thousands of Canadian dollars) | Three Months Ended Twelve Months Ended | April 30, April 30, | 2026 2025 2026 2025 | Cash flows from operating activities: | Net (loss) profit $ (224) $ 1,710 $ 4,038 $ 4,459 | Adjustments for: | Depreciation of property and equipment and right-of-use assets 355 349 1,417 1,473 | Amortization of deferred development costs 245 184 1,082 769 | Amortization of other intangible assets 524 320 2,124 1,304 | Interest expense (income) and foreign exchange loss 132 98 65 (255) | Unrealized foreign exchange and other (216) (1,204) (818) (605) | Non-refundable tax credits (495) (588) (2,474) (2,530) | Stock-based compensation 706 536 3,389 2,951 | Income taxes 387 2,125 2,748 2,346 | Net cash from operating activities excluding changes in non-cash working capital items related to operations 1,414 3,530 11,571 9,912 | Accounts receivable (5,696) (2,299) (4,426) (1,728) | Work in progress (1,619) (348) 1,763 (3,152) | Other receivables and assets 315 68 (597) (278) | Tax credits (906) (963) 199 16 | Inventory 500 69 704 (507) | Prepaid expenses 24 (422) (403) (993) | Contract acquisition costs (295) (919) (258) (1,090) | Accounts payable and accrued liabilities 271 1,851 (707) 2,962 | Deferred revenue 9,054 6,311 8,408 8,766 | Changes in non-cash working capital items related to operations 1,648 3,348 4,683 3,996 | Net cash provided by operating activities 3,062 6,878 16,254 13,908 | Cash flows from financing activities: | Payment of lease obligations (66) (209) (609) (816) | Payment of dividends (1,315) (1,261) (5,155) (4,880) | Interest paid (4) (15) (28) (82) | Issuance of common shares on exercise of stock options 59 3,070 590 4,638 | Shares repurchased and cancelled (5,909) (943) (13,228) (6,934) | Net cash (used in) provided by financing activities (7,235) 642 (18,430) (8,074) | Cash flows from investing activities: | Interest received 75 13 99 72 | Transfers from short-term investments - - - 5,570 | Acquisitions of property and equipment (347) (331) (2,186) (828) | Acquisition of intangible assets - - (1,975) - | Deferred development costs (659) (592) (2,209) (1,924) | Net cash (used in) provided by investing activities (931) (910) (6,271) 2,890 | Net (decrease) increase in cash and cash equivalents during the period (5,104) 6,610 (8,447) 8,724 | Cash and cash equivalents - beginning of period 24,237 20,970 27,580 18,856 | Cash and cash equivalents - end of period $ 19,133 $ 27,580 $ 19,133 $ 27,580 |
Consolidated Statements of Changes in Equity (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 - - - - 4,038 4,038 | Other comprehensive income: | Effective portion of changes in fair value on designated cash flow hedges - - - 1,269 - 1,269 | Exchange difference on translation of foreign operations - - - 111 - 111 | Total comprehensive income - - - 1,380 4,038 5,418 | Shares repurchased and cancelled (423,814) (1,664) (7,952) - (3,612) (13,228) | Stock-based compensation - - 3,389 - - 3,389 | Dividends to equity owners - - - - (5,155) (5,155) | Share options exercised 22,031 782 (192) - - 590 | Total transactions with owners of the Company (401,783) $ (882) $ (4,755) $ - $ (8,767) $ (14,404) | Balance, April 30, 2026 14,434,337 $ 56,691 $ - $ 2,614 $ 2,971 $ 62,276 | Balance, May 1, 2024 14,840,150 $ 52,256 $ 9,417 $ (1,425) $ 8,121 $ 68,369 | Net profit - - - - 4,459 4,459 | Other comprehensive income: | Effective portion of changes in fair value on designated cash flow hedges - - - 1,941 - 1,941 | Exchange difference on translation of foreign operations - - - 718 - 718 | Total comprehensive income - - - 2,659 4,459 7,118 | Shares repurchased and cancelled (172,200) (618) (6,316) - - (6,934) | Stock-based compensation - - 2,951 - - 2,951 | Dividends to equity owners - - - - (4,880) (4,880) | Share options exercised 168,170 5,935 (1,297) - - 4,638 | Total transactions with owners of the Company (4,030) $ 5,317 $ (4,662) $ - $ (4,880) $ (4,225) | Balance, April 30, 2025 14,836,120 $ 57,573 $ 4,755 $ 1,234 $ 7,700 $ 71,262 |
SOURCE Tecsys Inc.