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Tecsys (TCS) investor relations material

Tecsys Q2 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2026 earnings summary4 Dec, 2025

Executive summary

  • SaaS revenue grew 22% year-over-year in Q2 FY26, driving record total revenue and a 71% increase in adjusted EBITDA, with SaaS now representing a majority of total revenue.

  • Elite healthcare solution and pharmacy markets remain core business drivers, with a 60% year-over-year increase in the healthcare SaaS pipeline and strong expansion in hospital networks.

  • Elite platform is now available on AWS Marketplace, enhancing cloud strategy and customer reach.

  • New customer wins included a marquee healthcare and life sciences brand and a significant migration in Europe.

  • Expanded global reach with over 1,000 customers and significant U.S. market presence.

Financial highlights

  • Q2 FY26 SaaS revenue was $19.7 million (CAD 19.7 million), up 22% year-over-year; SaaS ARR reached $81.1 million, up 16%; SaaS RPO was $240.4 million, up 18%.

  • Q2 FY26 total revenue was $48.6 million, up 15% year-over-year; adjusted EBITDA was $5.0 million, up 71%; net profit was $1.8 million, up from $0.8 million; EPS was $0.12, up from $0.05.

  • Professional services revenue hit a record $17 million, up 20% year-over-year; backlog up 14% year-over-year but down 10% sequentially.

  • Gross margin improved to 52% (52.2%), up 400 basis points from last year.

  • Cash and short-term investments stood at $18.6 million (CAD 30.5 million) with no debt; $2.8 million used for share buybacks and $2.5 million paid in dividends.

Outlook and guidance

  • Full-year fiscal 2026 guidance maintained: SaaS revenue growth of 20%-22%, total revenue growth of 8%-10%, and adjusted EBITDA margin of 8%-9%.

  • Pipeline remains robust despite elongated decision cycles and macroeconomic headwinds; Elite SaaS product margins running over 75% on latest infrastructure.

Macro impact on deal velocity
Strategy for PS capacity and growth
Non-core churn impact on ARR growth?
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Frequently asked questions

Tecsys Inc is a Canadian software company that provides supply chain management solutions for distribution, healthcare, and retail organizations. The company offers warehouse management, transportation management, and order fulfillment systems, along with cloud-based and on-premise deployment options. Tecsys Inc is headquartered in Montreal, Canada, and its shares are listed on the TSX.

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