Tecsys Reports Financial Results for the First Quarter of Fiscal 2027

Elite^TM SaaS Revenueⁱ Up 24% Driving Record Revenue Quarter, Adjusted EBITDAⁱⁱ Up 113%

MONTREAL, Sept. 10, 2026 /CNW/ -- Tecsys Inc. (TSX: TCS), an industry-leading supply chain management company, today announced its results for the first quarter of fiscal 2027, 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 same 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. Elite^TM 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. Elite^TM 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.
• 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:

	Current FY27 Guidance	Previous FY27 Guidance
Elite^TM SaaS Revenue^i Growth	21-23%	18-20%
Total SaaS Revenue Growth	16-18%	13-15%
Total Revenue Growth	5-8%	2-4%
Adjusted EBITDA^ii Margin	11-14%	11-13%

^i	Elite^TM 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.

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 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

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

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

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

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

SOURCE Tecsys Inc.

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