Sylogist (SYZ) Q3 2025 earnings summary

Executive summary

• SaaS revenue reached 73% of recurring revenue, up from 68% year-over-year, with SaaS ARR increasing 15% year-over-year.

• Achieved 12% year-over-year SaaS revenue growth and a 19.3% Adjusted EBITDA margin in Q3 2025.

• Partner-led sales and delivery accounted for 48% of ARR bookings, with contractual changes reducing time to revenue recognition.

• Transformation from a legacy software consolidator to a SaaS-focused, customer-centric company is largely complete.

• The company advanced its Microsoft partnership, achieving managed SDC status, and is expanding its partner model across strategic markets.

Financial highlights

• Q3 revenue was CAD 15.9 million; SaaS subscription revenue grew 12% year-over-year to $8.3 million.

• SaaS ARR grew 15% year-over-year to $33.6 million; total ARR up 5% to $45.8 million.

• Adjusted EBITDA was CAD 3.1 million (19.3% margin), down from 25% margin year-over-year.

• Gross margin was 60%, consistent with last year; recurring revenue margins improved due to lower third-party costs.

• Net loss of $0.9 million; recurring revenue comprised 72% of total revenue.

Outlook and guidance

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

• Gross margin anticipated to remain around 60%, with adjusted EBITDA margin in the high teens.

• Management highlights continued traction in SaaS and partner-driven strategies, expecting further growth in recurring revenue.