Tecsys Reports Financial Results for the Fourth Quarter and Full Year of Fiscal 2025

SaaS Revenue Up 29% Driving Record Revenue Quarter, Adjusted EBITDAⁱ Up 55%

MONTREAL, June 26, 2025 /CNW/ -- Tecsys Inc. (TSX: TCS), an industry-leading supply chain management SaaS company, today announced its results for the fourth quarter and full year of fiscal 2025, ended April 30, 2025. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS).

"Fiscal 2025 was a strong year for Tecsys, with 29% SaaS revenue growth and expanded market opportunity," said Peter Brereton, president and CEO at Tecsys. "We delivered 39% full year Adjusted EBITDAi growth and ended the year with a record professional services backlogii. We expanded our global footprint with key strategic activities and achieved a healthy mix of new logos, base expansions and complex distribution wins across multiple geographies. The recent launch of TecsysIQ reflects our commitment to deepening customer value through our continued investment in AI innovation. We believe these results and initiatives position us well to continue scaling profitably into fiscal 2026."

Mark Bentler, chief financial officer of Tecsys Inc., added, "We had a strong $6.5 million SaaS bookingsⁱⁱ quarter, with record Q4 revenue and 55% Q4 Adjusted EBITDAⁱ growth underscoring our solid execution. We have decided to increase our investment in R&D and marketing in fiscal 2026 to drive SaaS margin growth and SaaS revenue growth, respectively. As a result, we are revising our fiscal 2026 Adjusted EBITDAⁱ margin guidance to 8-9% and expect Adjusted EBITDAⁱ growth in the range of 20-30%."

Fourth Quarter Highlights:

• SaaS revenue increased by 29% to $18.4 million, up from $14.2 million in Q4 2024.
• SaaS subscription bookingsⁱⁱ (measured on an ARRⁱⁱ basis) were $6.5 million compared to $8.0 million in the fourth quarter of fiscal 2024.
• SaaS Remaining Performance Obligation (RPOⁱⁱ) increased by 10% to $216.7 million at April 30, 2025, up from $196.9 million at the same time last year.
• Total revenue increased to a record $46.6 million compared to $44.0 million in Q4 2024.
• Net profit was $1.7 million ($0.12 per basic share or $0.11 per fully diluted share) in Q4 2025, compared to $0.3 million or $0.02 per fully diluted share for the same period in fiscal 2024.
• Adjusted EBITDAⁱ was $4.3 million compared to $2.8 million reported in Q4 last year.
• In the fourth quarter of fiscal 2025, Tecsys acquired 22,800 of its outstanding common shares for approximately $0.9 million as part of its ongoing Normal Course Issuer Bid, compared to 128,300 common shares acquired in the same period last year for approximately $5.0 million.

Fiscal 2025 Highlights:

• SaaS revenue increased by 29% to $67.1 million, up from $51.9 million in fiscal 2024.
• SaaS subscription bookingsⁱⁱ (measured on an ARRⁱⁱ basis) were $17.3 million compared to $18.6 million in fiscal 2024.
• Total revenue increased to a record $176.5 million compared to $171.2 million in fiscal 2024.
• Net profit was $4.5 million, or $0.30 per fully diluted share in fiscal 2025, compared to a net profit of $1.8 million, or $0.13 per fully diluted share, for fiscal 2024.
• Adjusted EBITDAⁱ was $13.4 million compared to $9.6 million in fiscal 2024.
• In Fiscal 2025, Tecsys acquired 172,200 of its outstanding common shares for approximately $6.9 million as part of its ongoing Normal Course Issuer Bid, compared to 204,500 common shares acquired in the same period last year for approximately $7.2 million.

Financial Guidance:

Tecsys is providing financial guidance as follows:

	FY26 Guidance		Previous FY26 Guidance
Total Revenue Growth	8-10%
SaaS Revenue Growth	20-22%
Adjusted EBITDA^i Margin	8-9%		10-11%

On June 26, 2025, the Company declared a quarterly dividend of $0.085 per share to be paid on August 1, 2025, to shareholders of record on July 11, 2025.

Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be "eligible" dividends.

Q4 and FY2025 Financial Results Conference Call
Date: June 27, 2025
Time: 8:30 a.m. ET
Phone number: 800-836-8184 or 646-357-8785
The call can be replayed until July 4, 2025, by calling:
888-660-6345 or 646-517-4150 (access code: 07914#)

^i	See Non-IFRS Performance Measures in Management's Discussion and Analysis of the 2025 Financial Statements.
^ii	See Key Performance Indicators in Management's Discussion and Analysis of the 2025 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.

	Year ended April 30,
(in thousands of CAD)		2025		2024		2023
Net profit for the period	$	4,459	$	1,849	$	2,089
Adjustments for:
Depreciation of property and equipment and right-of- use assets		1,473		1,477		1,775
Amortization of deferred development costs		769		583		496
Amortization of other intangible assets		1,304		1,493		1,603
Interest expense		82		163		406
Interest income		(641)		(1,015)		(686)
Income taxes		2,976		641		1,624
EBITDA	$	10,422	$	5,191	$	7,307
Adjustments for:
Stock based compensation		2,951		2,301		2,177
Restructuring costs		-		2,122		-
Adjusted EBITDA^i	$	13,373	$	9,614	$	9,484

Consolidated Statements of Financial Position (In thousands of Canadian dollars)
		April 30, 2025		April 30, 2024
Assets
Current assets
Cash and cash equivalents	$	27,580	$	18,856
Short-term investments		11,712		16,713
Accounts receivable		23,943		22,090
Work in progress		7,436		4,248
Other receivables		274		134
Tax credits		6,390		6,422
Inventory		1,870		1,359
Prepaid expenses and other		10,699		9,143
Total current assets		89,904		78,965
Non-current assets
Other long-term receivables and assets		1,457		421
Tax credits		6,120		4,737
Property and equipment		1,164		1,372
Right-of-use assets		836		1,251
Contract acquisition costs		5,017		4,478
Deferred development costs		3,838		2,683
Other intangible assets		6,726		7,703
Goodwill		17,827		17,363
Deferred tax assets		7,521		9,073
Total non-current assets		50,506		49,081
Total assets	$	140,410	$	128,046
Liabilities
Current liabilities
Accounts payable and accrued liabilities		22,367		20,030
Deferred revenue		45,025		36,211
Lease obligations		590		812
Total current liabilities		67,982		57,053
Non-current liabilities
Other long-term accrued liabilities		33		496
Deferred tax liabilities		405		826
Lease obligations		728		1,302
Total non-current liabilities		1,166		2,624
Total liabilities	$	69,148	$	59,677
Equity
Share capital	$	57,573	$	52,256
Contributed surplus		4,755		9,417
Retained earnings		7,700		8,121
Accumulated other comprehensive income (loss)		1,234		(1,425)
Total equity attributable to the owners of the Company		71,262		68,369
Total liabilities and equity	$	140,410	$	128,046

Consolidated Statements of Income and Comprehensive Income (loss) (In thousands of Canadian dollars, except per share data)
	Three Months Ended				Twelve Months Ended
	April 30,				April 30,
	2025		2024		2025		2024
Revenue:
SaaS	$	18,375	$	14,191	$	67,071	$	51,918
Maintenance and Support		7,910		8,140		32,470		33,957
Professional Services		16,213		14,390		57,665		55,188
License		294		282		1,811		1,386
Hardware		3,763		6,952		17,437		28,793
Total revenue		46,555		43,955		176,454		171,242
Cost of revenue		22,712		23,341		91,161		92,853
Gross profit		23,843		20,614		85,293		78,389
Operating expenses:
Sales and marketing		9,695		8,437		36,152		32,976
General and administration		3,373		3,264		12,646		11,844
Research and development, net of tax credits		7,665		7,435		29,315		29,514
Restructuring costs		-		2,122		-		2,122
Total operating expenses		20,733		21,258		78,113		76,456
Profit (loss) from operations		3,110		(644)		7,180		1,933
Other (costs) income		(98)		122		255		557
Profit (loss) before income taxes		3,012		(522)		7,435		2,490
Income tax expense (benefit)		1,302		(781)		2,976		641
Net profit	$	1,710	$	259	$	4,459	$	1,849
Other comprehensive income (loss):
Effective portion of changes in fair value on designated revenue hedges		7,662		(2,187)		1,941		(1,086)
Exchange differences on translation of foreign operations		486		102		718		(322)
Comprehensive income (loss)	$	9,858	$	(1,826)	$	7,118	$	441
Basic earnings per common share	$	0.12	$	0.02	$	0.30	$	0.13
Diluted earnings per common share	$	0.11	$	0.02	$	0.30	$	0.13

Consolidated Statements of Cash Flows (In thousands of Canadian dollars)
	Three Months Ended				Twelve Months Ended
	April 30,				April 30,
		2025		2024		2025		2024
Cash flows from operating activities:
Net profit	$	1,710	$	259	$	4,459	$	1,849
Adjustments for:
Depreciation of property and equipment and right-of-use-assets		349		361		1,473		1,477
Amortization of deferred development costs		184		147		769		583
Amortization of other intangible assets		320		347		1,304		1,493
Interest expense (income) and foreign exchange loss (gain)		98		(122)		(255)		(557)
Unrealized foreign exchange and other		(1,204)		481		(605)		(569)
Non-refundable tax credits		(588)		(596)		(2,530)		(1,961)
Stock-based compensation		536		531		2,951		2,301
Income taxes		2,125		65		2,346		519
Net cash from operating activities excluding changes in non-cash          working capital items related to operations		3,530		1,473		9,912		5,135
Accounts receivable		(2,299)		2,714		(1,728)		764
Work in progress		(348)		(856)		(3,152)		(2,518)
Other receivables and assets		68		(135)		(278)		1
Tax credits		(963)		(728)		16		113
Inventory		69		544		(507)		(327)
Prepaid expenses		(422)		299		(993)		(646)
Contract acquisition costs		(919)		(784)		(1,090)		(1,045)
Accounts payable and accrued liabilities		1,851		(3,052)		2,962		(2,455)
Deferred revenue		6,311		5,506		8,766		5,833
Changes in non-cash working capital items related to operations		3,348		3,508		3,996		(280)
Net cash provided by operating activities		6,878		4,981		13,908		4,855
Cash flows from financing activities:
Payment of lease obligations		(209)		(193)		(816)		(786)
Payment of dividends		(1,261)		(1,175)		(4,880)		(4,560)
Interest paid		(15)		(27)		(82)		(163)
Issuance of common shares on exercise of stock options		3,070		3,897		4,638		6,964
Shares repurchased and cancelled		(943)		(5,010)		(6,934)		(7,215)
Net cash provided by (used in) financing activities		642		(2,508)		(8,074)		(5,760)
Cash flows from investing activities:
Interest received		13		6		72		97
Transfers from short-term investments		-		-		5,570		40
Acquisitions of property and equipment		(331)		(144)		(828)		(599)
Deferred development costs		(592)		(203)		(1,924)		(1,012)
Net cash (used in) provided by investing activities		(910)		(341)		2,890		(1,474)
Net Increase (decrease) in cash and cash equivalents during the period		6,610		2,132		8,724		(2,379)
Cash and cash equivalents - beginning of period		20,970		16,724		18,856		21,235
Cash and cash equivalents - end of period	$	27,580	$	18,856	$	27,580	$	18,856

Consolidated Statements of Changes in Equity (In thousands of Canadian dollars, except number of shares)
	Share capital
	Number		Amount		Contributed Surplus		Accumulated other comprehensive (loss) income		Retained earnings		Total
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 revenue 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
Balance, May 1, 2023	14,582,837	$	44,338		15,285	$	(17)	$	10,832	$	70,438
Net profit	-		-		-		-		1,849		1,849
Other comprehensive (loss) income:
Effective portion of changes in fair value on designated revenue hedges	-		-		-		(1,086)		-		(1,086)
Exchange difference on translation of foreign operations	-		-		-		(322)		-		(322)
Total comprehensive (loss) income	-		-		-		(1,408)		1,849		441
Shares repurchased and cancelled	(204,500)		(684)		(6,531)		-		-		(7,215)
Stock-based compensation	-		-		2,301		-		-		2,301
Dividends to equity owners	-		-		-		-		(4,560)		(4,560)
Share options exercised	461,813		8,602		(1,638)		-		-		6,964
Total transactions with owners of the Company	257,313	$	7,918		(5,868)	$	-	$	(4,560)	$	(2,510)
Balance, April 30, 2024	14,840,150	$	52,256		9,417	$	(1,425)	$	8,121	$	68,369

SOURCE Tecsys Inc.

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