Tecsys Q1 Earnings Call Highlights

Record Q1 performance: Tecsys’ revenue rose 9% year over year to C$50 million, while adjusted EBITDA more than doubled to C$6.9 million and net profit increased 306% to C$3.1 million.

Healthcare-led expansion drove bookings: Existing customers, particularly healthcare organizations such as Prisma Health and UT Southwestern, expanded their Tecsys deployments. SaaS revenue grew 18%, Elite SaaS revenue rose 24%, and remaining performance obligations surpassed C$250 million.

Fiscal 2027 guidance was raised: Tecsys increased its expected growth ranges for Elite SaaS, total SaaS and overall revenue, while lifting its adjusted EBITDA margin outlook to 11%–14%, supported by early SaaS bookings, pipeline strength and hardware demand.

Tecsys opened fiscal 2027 with record first-quarter revenue, record adjusted EBITDA and what Chief Executive Officer Peter Brereton described as the company’s second-highest bookings quarter ever, led primarily by expansions among existing healthcare customers.

For the quarter ended July 31, 2026, total revenue rose 9% year over year to C$50 million, or 8% on a constant-currency basis.

Net profit increased 306% to C$3.1 million, or C$0.21 per diluted share, from C$0.8 million a year earlier.

Adjusted EBITDA more than doubled to C$6.9 million from C$3.2 million.

Brereton said existing users of Tecsys’ Elite platform, particularly healthcare organizations, expanded their deployments during the quarter. He cited Prisma Health, UT Southwestern Medical Center and a leading cancer treatment center as health systems that increased their relationships with the company.

At Prisma Health, South Carolina’s largest private nonprofit health system, Tecsys’ expansion moved beyond earlier warehouse and pharmacy inventory deployments to include hospital point-of-use technology across its network. Brereton said the deployment is intended to provide greater visibility for clinical and supply-chain teams supporting 1.6 million patients annually across 19 hospitals.

While healthcare was the principal source of expansion activity, Tecsys also reported SaaS migrations among general-distribution customers, including Rinchem, as well as a new European life-sciences customer.

During the question-and-answer session, Brereton said first-quarter bookings were “heavily slanted towards expansions.” New-account bookings were light, which he characterized as typical for the company’s summer quarter, while bookings from migrations of legacy on-premise customers have diminished as more of that customer base has already moved to SaaS.

He said more than 90% of pipeline activity is now split relatively evenly between new-account opportunities and expansions among existing SaaS customers, with migrations representing a smaller component.

Total SaaS revenue rose 18% to C$22.7 million from C$19.1 million in the prior-year quarter, or 17% in constant currency.

Elite SaaS revenue, the company’s core product offering, grew 24%, or 23% on a constant-currency basis.

Total SaaS annual recurring revenue reached C$93.7 million at quarter-end, up 18% year over year.

Tecsys separately disclosed Elite SaaS ARR of C$89.6 million, up 24% from a year earlier, or 22% in constant currency.

Remaining performance obligations, a measure of contracted future revenue, reached C$259.2 million, surpassing C$250 million for the first time. The figure was up 14% year over year, or 13% in constant currency.

Brereton said the expansion activity reflected cust...