Tecsys Reports Financial Results for the Third Quarter of Fiscal 2026
Igår, 23:10
Tecsys Reports Financial Results for the Third Quarter of Fiscal 2026
Canada NewsWire
MONTREAL, March 4, 2026
Record Adjusted EBITDA i 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 ARR ii increased by 10% to $83.3 million on January 31, 2026 compared to $75.4 million on January 31, 2025.
- SaaS Remaining Performance Obligation (RPO ii ) 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 EBITDA i 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 EBITDA i 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 EBITDA i 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 EBITDA i | $ | 5,046 | $ | 3,535 | $ | 13,300 | $ | 9,068 | $ | 17,605 | $ | 11,848 |
Condensed Interim Consolidated Statements of Financial Position
| ||||
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
| ||||||||
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
| ||||||||
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
| |||||||||||
Share capital | |||||||||||
Number | Amount | Contributed
| Accumulated
| Retained
| 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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Tecsys Reports Financial Results for the Third Quarter of Fiscal 2026
Igår, 23:10
Tecsys Reports Financial Results for the Third Quarter of Fiscal 2026
Canada NewsWire
MONTREAL, March 4, 2026
Record Adjusted EBITDA i 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 ARR ii increased by 10% to $83.3 million on January 31, 2026 compared to $75.4 million on January 31, 2025.
- SaaS Remaining Performance Obligation (RPO ii ) 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 EBITDA i 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 EBITDA i 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 EBITDA i 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 EBITDA i | $ | 5,046 | $ | 3,535 | $ | 13,300 | $ | 9,068 | $ | 17,605 | $ | 11,848 |
Condensed Interim Consolidated Statements of Financial Position
| ||||
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
| ||||||||
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
| ||||||||
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
| |||||||||||
Share capital | |||||||||||
Number | Amount | Contributed
| Accumulated
| Retained
| 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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