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 CAD 31.7 million; total ARR up 3% to CAD 43.8 million.

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

• SaaS NRR reached 107%, indicating robust customer retention and expansion.

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

Financial highlights

• Q2 revenue was CAD 15.7 million; SaaS subscription revenue grew 13% year-over-year to CAD 7.9 million.

• Recurring revenue totaled CAD 10.9 million, up 4% year-over-year.

• Project services revenue dropped to CAD 4.2 million from CAD 9 million year-over-year, reflecting a shift to partner-led implementations.

• Q2 gross margin was 58%, down from 62% last year, mainly due to project services margin compression and VSS contract accounting.

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

Outlook and guidance

• SaaS ARR growth for 2025 expected in the low teens percentage range.

• Gross margin forecasted at approximately 60%, with 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.

• Forward-looking statements caution that actual results may differ due to economic, competitive, and technological risks.