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Sylogist (SYZ) investor relations material
Sylogist Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Achieved the second highest bookings in company history, with a 33% year-over-year increase and 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, driven by new logo acquisition, upsell/cross-sell, and a strong partner ecosystem.
SaaS NRR reached 107%, indicating robust customer retention and expansion.
Some ARR recognition was delayed due to macro timing and customer onboarding, but these are expected to be realized in future quarters.
Board declared a quarterly dividend of $0.01 per share, payable September 10, 2025.
Financial highlights
Q2 2025 revenue was $15.7M, with SaaS subscription revenue up 13% year-over-year and recurring revenue totaling $10.9M, up 4% year-over-year.
Project services revenue dropped to $4.2M from $9M last year, reflecting a shift to partner-led implementations.
Gross margin was 58% (down from 62% last year), mainly due to project services margin compression and VSS contract accounting.
Adjusted EBITDA was $2.4M (15% margin), down from 26% last year, impacted by lower capitalized development and project services costs.
Ended Q2 with $4.8M in cash, consistent with seasonal invoicing patterns.
Outlook and guidance
Updated 2025 outlook: SaaS ARR growth in the low teens percentage, gross margin around 60%, and adjusted EBITDA margin in the high teens.
Guidance reflects elongated sales cycles in education and municipal government, VSS contract accounting, and lower capitalized development.
Management highlighted continued execution on strategic growth initiatives, including product innovation, AI, and partner-led delivery.
Delayed ARR is expected to positively impact future quarters as implementation bottlenecks are resolved.
Forward-looking statements caution that actual results may differ due to economic, competitive, and technological risks.
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