Tecsys (TCS) investor relations material

Executive summary

• SaaS revenue grew 25% year-over-year to $19.1 million, driving total revenue of $46 million, with adjusted EBITDA up 24% to $3.2 million and net profit steady at $0.8 million ($0.05 per share).

• SaaS ARR reached $79.3 million, up 21% year-over-year, with new health system wins and expansions in hospital networks and general distribution.

• Professional services revenue increased 20% to $16 million, amid robust implementation activity and high utilization.

• Major new customer wins included a leading biomedical brand, with continued growth in pharmacy and healthcare distribution verticals.

• Innovation initiatives advanced, including Tecsys IQ (AI-powered data platform), generative AI for WMS and point-of-use, and the launch of India operations.

Financial highlights

• SaaS revenue up 25% year-over-year to $19.1 million; SaaS ARR up 21% to $79.3 million; total revenue reached $46 million, up 9%.

• Professional services revenue increased 20% to $16 million; backlog up 23% to $43.7 million.

• Gross margin improved to 51% from 47% last year, with gross profit at $23.6 million.

• Net profit was $0.8 million, EPS $0.05; adjusted EBITDA was $3.2 million, up from $2.6 million.

• SaaS RPO at $226.3 million, up 16% year-over-year.

Outlook and guidance

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

• SaaS margin expansion projected, with consolidated SaaS margin expected to reach 75% by FY2028.

• SaaS pipeline remains strong, especially in pharmacy and general distribution; backlog in SaaS and professional services supports future growth.

• Most SaaS growth now expected from new accounts and expansions, with maintenance migrations slowing.

• Continued investment in product development, AI, and market leadership, especially in healthcare supply chain.