Earnings release
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News Release FOR IMMEDIATE RELEASE Tecsys Reports Financial Results for the First Quarter of Fiscal 2027 EliteTM SaaS Revenuei Up 24% Driving Record Revenue Quarter, Adjusted EBITDAii Up 113% Montreal, September 10, 2026 — Tecsys Inc. (TSX: TCS), an industry -leading supply chain management company, today announced its results for the first quarter of fiscal 202 7, ended July 31, 2026. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS). “Our first quarter demonstrates the increasing value customers place on the Tecsys platform, with existing healthcare and distribution customers significantly deepening their investment with us — resulting in one of the strongest bookings quarters in our company's history. That momentum is translating directly into accelerating Elite SaaS ARR growth and record profitability, underscoring the durability of our recurring revenue model as we build on the strong foundation we established in fiscal 2026 ," said Peter Brereton, president and CEO of Tecsys. Mark Bentler, chief financial officer, added, "Our first quarter results reflect the continued strength and durability of our SaaS -first strategy. Elite SaaS revenue grew 24% year -over-year, driving record total revenue of $50 million and record Adjusted EBITDA of $6.9 million, more than double the sa me period last year. Based on strong Q1 Elite SaaS bookings, continued pipeline strength and robust hardware bookings, we are raising our fiscal 2027 guidance for Elite SaaS revenue growth, total SaaS revenue growth , total revenue growth and Adjusted EBITDA margin." First Quarter Highlights: • Total SaaS revenue increased by 18% to $22.7 million, up from $19.1 million in Q1 2026. EliteTM SaaS revenuei increased by 24% compared to Q1 last year (23% on a constant currency basis). • Total SaaS ARRiii increased by 18% (17% on a constant currency basisiii) to $93.7 million on July 31, 2026 compared to $79.3 million on July 31, 2025. EliteTM SaaS ARRiii increased by 24% (22% on a constant currency basisiii). • SaaS Remaining Performance Obligation (RPOiii) increased by 14% (13% on a constant currency basisiii) to $259.2 million at July 31, 2026, up from $226.3 million at the same time last year. • Total revenue increased to $50.0 million compared to $46.0 million in Q1 2026. • Net profit was $3.1 million ($0.21 basic and diluted earnings per share) in Q1 2027 compared to $0.8 million ($0.05 basic and diluted earnings per share) in Q1 2026.
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• Adjusted EBITDAii was $6.9 million compared to $3.2 million reported in Q1 last year. • In the first quarter of fiscal 2027, Tecsys acquired 17,400 of its outstanding common shares for approximately $0.6 million as part of its ongoing Normal Course Issuer Bid, compared to 21,300 common shares acquired in the same period last year for approximately $0.8 million. Financial Guidance: Tecsys is updating full fiscal year financial guidance as follows: i EliteTM SaaS Revenue refers to our core product and the predominant contributor to total SaaS Revenue. ii See Non-IFRS Performance Measures in Management’s Discussion and Analysis of the Q1 2027 Interim Financial Statements. iii See Key Performance Indicators in Management’s Discussion and Analysis of the Q1 2027 Interim Financial Statements. On September 10, 2026, the Company declared a quarterly dividend of $0.09 per share to be paid on October 2, 2026 to shareholders of record on September 22, 2026. Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be “eligible” dividends. Q1 2027 Financial Results Conference Call Date: September 11, 2026 Time: 8:30 a.m. ET Phone number: 800-836-8184 or 646-357-8785 The call can be replayed until September 18, 2026, by calling: 888-660-6345 or 646-517-4150 (access code: 51000#) 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. Current FY27 Guidance Previous FY27 Guidance EliteTM SaaS Revenuei Growth 21-23% 18-20% Total SaaS Revenue Growth 16-18% 13-15% Total Revenue Growth 5-8% 2-4% Adjusted EBITDAii Margin 11-14% 11-13%
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Contact Public Relations: Belinda Thomas (belinda.thomas@tecsys.com) Investor Relations: investors@tecsys.com Solutions and General info: info@tecsys.com By phone: (514) 866-0001 or (800) 922-8649 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 resul ts 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. The se 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, inte rest 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 additi on, 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
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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) 2026 2025 2026 2025 Net profit $ 3,097 $ 762 $ 6,373 $ 4,423 Adjustments for: Depreciation of property and equipment and right-of-use assets 371 329 1,459 1,431 Amortization of deferred development costs 346 281 1,147 853 Amortization of other intangible assets 525 543 2,106 1,513 Interest expense 62 11 194 68 Interest income (186) (121) (529) (545) Income taxes 1,793 625 4,818 3,165 EBITDA $ 6,008 $ 2,430 $ 15,568 $ 10,908 Adjustments for: Stock based compensation 850 784 3,455 3,088 Restructuring costs - - 4,652 - Adjusted EBITDA $ 6,858 $ 3,214 $ 23,675 $ 13,996 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 July 31, Trailing 12 Months Ended July 31, (in thousands of CAD) 2026 2025 2026 2025 Net profit $ 3,097 $ 762 $ 6,373 $ 4,423 Adjustments for: Restructuring costs - - 4,652 - Tax benefit related to restructuring costs - - (1,233) - Adjusted net profit $ 3,097 $ 762 $ 9,792 $ 4,423
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Condensed Interim Consolidated Statements of Financial Position (Unaudited) (In thousands of Canadian dollars) July 31, 2026 April 30, 2026 Assets Current assets Cash and cash equivalents $ 22,827 $ 19,133 Short-term investments 12,164 12,077 Accounts receivable 22,569 28,425 Work in progress 4,546 5,681 Other receivables 695 818 Tax credits 6,947 6,193 Inventory 1,253 1,167 Prepaid expenses and other 11,712 11,292 Total current assets 82,713 84,786 Non-current assets Other long-term receivables and assets 1,077 3,188 Tax credits 7,492 6,978 Property and equipment 4,678 4,824 Right-of-use assets 2,315 2,409 Contract acquisition costs 5,815 5,084 Deferred development costs 5,137 4,965 Other intangible assets 6,890 7,356 Goodwill 18,002 17,901 Deferred tax assets 6,524 5,516 Total non-current assets 57,930 58,221 Total assets $ 140,643 $ 143,007 Liabilities Current liabilities Accounts payable and accrued liabilities 23,106 21,191 Deferred revenue 50,119 54,050 Lease obligations 492 531 Total current liabilities 73,717 75,772 Non-current liabilities Other long-term accrued liabilities 374 - Deferred tax liabilities 203 200 Lease obligations 4,645 4,759 Total non-current liabilities 5,222 4,959 Total liabilities $ 78,939 $ 80,731 Equity Share capital $ 56,623 $ 56,691 Contributed surplus 343 - Retained earnings 4,770 2,971 Accumulated other comprehensive (loss) income (32) 2,614 Total equity attributable to the owners of the Company 61,704 62,276 Total liabilities and equity $ 140,643 $ 143,007
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Condensed Interim Consolidated Statements of Income and Comprehensive Income (Unaudited) (in thousands of Canadian dollars, except per share data) Three Months Ended July 31, 2026 2025 Revenue: SaaS $ 22,652 $ 19,139 Maintenance and Support 7,386 7,857 Professional Services 16,099 16,039 License 108 89 Hardware 3,803 2,836 Total revenue 50,048 45,960 Cost of revenue 23,505 22,392 Gross profit 26,543 23,568 Operating expenses: Sales and marketing 10,153 10,316 General and administration 3,524 3,385 Research and development, net of tax credits 8,702 8,504 Total operating expenses 22,379 22,205 Profit from operations 4,164 1,363 Other income 726 24 Profit before income taxes 4,890 1,387 Income tax expense 1,793 625 Net profit $ 3,097 $ 762 Other comprehensive (loss) income: Effective portion of changes in fair value on designated cash flow hedges, net of tax (2,780) (747) Exchange differences on translation of foreign operations 134 (3) Comprehensive income $ 451 $ 12 Basic and diluted earnings per common share $ 0.21 $ 0.05
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Condensed Interim Consolidated Statements of Cash Flows (Unaudited) (in thousands of Canadian dollars) Three Months Ended July 31, 2026 2025 Cash flows from operating activities: Net profit $ 3,097 $ 762 Adjustments for: Depreciation of property and equipment and right-of-use assets 371 329 Amortization of deferred development costs 346 281 Amortization of other intangible assets 525 543 Interest expense (income) and foreign exchange (gain) loss (726) (24) Unrealized foreign exchange and other 1,096 (195) Non-refundable tax credits (561) (516) Stock-based compensation 850 784 Income taxes 1,790 620 Net cash from operating activities excluding changes in non-cash working capital items related to operations 6,788 2,584 Accounts receivable 5,912 2,753 Work in progress 1,143 1,381 Other receivables and assets (83) (580) Tax credits (707) (975) Inventory (85) (190) Prepaid expenses (539) 606 Contract acquisition costs (604) 264 Accounts payable and accrued liabilities (2,833) (5,952) Deferred revenue (3,955) (4,548) Changes in non-cash working capital items related to operations (1,751) (7,241) Net cash provided by (used in) operating activities 5,037 (4,657) Cash flows from financing activities: Payment of lease obligations (153) (217) Interest paid (62) (11) Issuance of common shares on exercise of stock options - 350 Shares repurchased and cancelled (575) (828) Net cash used in financing activities (790) (706) Cash flows from investing activities: Interest received 99 22 Acquisitions of property and equipment (134) (568) Acquisition of intangible assets - (1,975) Deferred development costs (518) (518) Net cash used in investing activities (553) (3,039) Net increase (decrease) in cash and cash equivalents during the period 3,694 (8,402) Cash and cash equivalents - beginning of period 19,133 27,580 Cash and cash equivalents - end of period $ 22,827 $ 19,178
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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, 2026 14,434,337 $ 56,691 $ - $ 2,614 $ 2,971 $ 62,276 Net profit - - - - 3,097 3,097 Other comprehensive (loss) income: Effective portion of changes in fair value on designated cash flow hedges, net of tax - - - (2,780) - (2,780) Exchange differences on translation of foreign operations - - - 134 - 134 Total comprehensive (loss) income - - - (2,646) 3,097 451 Shares repurchased and cancelled (17,400) (68) (507) - - (575) Stock-based compensation - - 850 - - 850 Dividends to equity owners - - - - (1,298) (1,298) Total transactions with owners of the Company (17,400) $ (68) $ 343 $ - $ (1,298) $ (1,023) Balance, July 31, 2026 14,416,937 $ 56,623 $ 343 $ (32) $ 4,770 $ 61,704 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 cash flow hedges, net of tax - - - (747) - (747) Exchange differences 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