Sylogist (SYZ) Q2 2025 earnings summary

Executive summary

• Achieved the second highest bookings in company history, with recurring revenue now at 70% of total revenue, up from 62% year-over-year.

• SaaS ARR rose 12.5% year-over-year to $31.7 million, with strong net revenue retention at 107% and a growing partner ecosystem.

• Bookings grew over 33% year-over-year, with balanced contributions across all three core segments.

• Provides SaaS solutions to over 2,000 customers across government, nonprofits, and K-12 education sectors, focusing on mission-critical platforms and integrated services.

• Board declared a quarterly dividend of $0.01 per share, payable September 10, 2025.

Financial highlights

• Q2 2025 revenue was $15.7 million, with SaaS subscription revenue up 13.1% year-over-year to $7.9 million.

• Recurring revenue totaled $10.9 million, up 4.0% year-over-year, and comprised 70% of total revenue.

• Adjusted EBITDA margin was 15.3% ($2.4 million), down from 26% last year, impacted by lower capitalized development and project services costs.

• Gross margin was 58%, down from 62% last year, mainly due to project services margin compression and VSS contract accounting.

• Trailing twelve months revenue as of June 30, 2025, was $63.9 million, with adjusted EBITDA of $12.4 million (19.5% margin).

Outlook and guidance

• SaaS ARR growth for 2025 expected in the low teens percentage range, with gross margin forecasted at approximately 60% and adjusted EBITDA margin in the high teens.

• Guidance reflects elongated sales cycles in education and municipal government markets, VSS contract accounting, and lower capitalized development.

• Management highlighted continued execution on strategic growth initiatives, including product innovation, AI, and partner-led delivery.