Record Revenue Quarter Led by SaaS
Montreal, Canada. March 5, 2025 — Tecsys Inc. (TSX: TCS), an industry-leading supply chain management SaaS company, today announced its results for the third quarter of fiscal 2025, ended January 31, 2025. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS).
“This quarter, we achieved record revenue driven by strong growth in SaaS. We’re seeing diversified activity across key sectors, from major health systems to healthcare 3PLs as well as industrial distributors. Our pharmacy supply chain solutions continue to drive strong market activity.” said Peter Brereton, president and CEO of Tecsys.
Mark Bentler, chief financial officer of Tecsys, added, “We are experiencing strong momentum in our SaaS business, coupled with increasing profitability. We’re pleased to see Adjusted EBITDA scaling effectively, up 33% year-to-date.”
Third quarter highlights:
Year-to-date performance for first nine months of fiscal 2025
Financial guidance:
Tecsys is maintaining its FY25 guidance for SaaS revenue growth of 30-32% and Adjusted EBITDA margins of 8-9% for FY25 and 10-11% for FY26. We saw strong Q3 Professional Services bookings and year-over-year growth in SaaS bookings; however, the timing of these bookings is expected to result in full-year AEBITDA margins and SaaS revenue being at the lower end of the guidance range.
Overall, based on actual third quarter hardware shipments and visibility into overall fourth quarter revenue, the Company is raising its fiscal 2025 total revenue growth guidance from flat to 1-3% growth and will provide fiscal 2026 guidance with its Q4 and full-year fiscal 2025 earnings release.
On March 5, 2025, the Company declared a quarterly dividend of $0.085 per share to be paid on April 16, 2025 to shareholders of record on March 26, 2025.
Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be “eligible” dividends.
i See Key Performance Indicators in Management’s Discussion and Analysis of the Q3 2025 Financial Statements.
ii See Non-IFRS Performance Measures in Management’s Discussion and Analysis of the Q3 2025 Financial Statements
Q3 2025 Financial Results Conference Call
Date: March 6, 2025
Time: 8:30 a.m. ET
Phone number: 800-836-8184 or 646-357-8785
The call can be replayed until March 13, 2025, by calling:
888-660-6345 or 646-517-4150 (access code: 14330#)
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.
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.
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.
Condensed Interim Consolidated Statements of Financial Position
(Unaudited)
(In thousands of Canadian dollars)
Condensed Interim Consolidated Statements of Income and Comprehensive (Loss) Income
(Unaudited)
(In thousands of Canadian dollars, except per share data)
Condensed Interim Consolidated Statements of Cash Flows
(Unaudited)
(In thousands of Canadian dollars)
Condensed Interim Consolidated Statements of Changes in Equity
(Unaudited)
(In thousands of Canadian dollars, except number of shares)