Tecsys Reports Financial Results for the Fourth Quarter and Full Year of Fiscal 2026

Elite^TM 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. Elite^TM 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. Elite^TM 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. Elite^TM 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 Elite^TM 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 Elite^TM SaaS revenueⁱⁱ Growth."

 Tecsys is providing financial guidance as follows:

	FY27 Guidance
Total Revenue Growth	2-4%
Elite^TM SaaS Revenue^ii Growth	18-20%
Total SaaS Revenue Growth	13-15%
Adjusted EBITDA^i 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.

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