Tecsys (TCS) Q1 2026 earnings summary

Executive summary

• Q1 fiscal 2026 SaaS revenue grew 25% year-over-year to $19.1M, driving total revenue up 9% to $46M, with strong presence in healthcare and general distribution markets.

• Adjusted EBITDA rose 24% to $3.2M, and net profit remained steady at $0.8M ($0.05 per share).

• SaaS ARR reached $79.3M, up 21% year-over-year, and professional services revenue grew 20%.

• New customer wins included a major biomedical brand, with continued expansion in healthcare and general distribution verticals.

• Investments in innovation (Tecsys IQ, generative AI) and India operations are accelerating product delivery and market differentiation.

Financial highlights

• SaaS revenue: $19.1M (+25% YoY); Professional services revenue: $16M (+20% YoY); total revenue: $46M (+9% YoY).

• SaaS ARR: $79.3M (+21% YoY); SaaS RPO: $226.3M (+16% YoY).

• Adjusted EBITDA: $3.2M (+24% YoY); net profit: $0.8M; EPS: $0.05 (basic and diluted).

• Gross margin improved to 51% from 47% YoY; gross profit reached $23.6M.

• Cash and short-term investments: $19.2M; $0.8M used for share buybacks; quarterly dividend of $0.085 per share approved.

Outlook and guidance

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

• SaaS ARR and RPO provide strong visibility; 92% of SaaS revenue forecast is already booked.

• Pipeline remains robust, especially in healthcare, pharmacy, and targeted distribution verticals.

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

• Maintenance revenue expected to decline 7%-10% annually as SaaS migration slows.