Tecsys (TCS) Q2 2026 earnings summary

Executive summary

• SaaS revenue grew 22% year-over-year in Q2 FY26, driving record total revenue and a 71% increase in adjusted EBITDA, with SaaS now representing a majority of total revenue.

• Elite healthcare solution and pharmacy markets remain core business drivers, with a 60% year-over-year increase in the healthcare SaaS pipeline and strong expansion in hospital networks.

• Elite platform is now available on AWS Marketplace, enhancing cloud strategy and customer reach.

• New customer wins included a marquee healthcare and life sciences brand and a significant migration in Europe.

• Expanded global reach with over 1,000 customers and significant U.S. market presence.

Financial highlights

• Q2 FY26 SaaS revenue was $19.7 million (CAD 19.7 million), up 22% year-over-year; SaaS ARR reached $81.1 million, up 16%; SaaS RPO was $240.4 million, up 18%.

• Q2 FY26 total revenue was $48.6 million, up 15% year-over-year; adjusted EBITDA was $5.0 million, up 71%; net profit was $1.8 million, up from $0.8 million; EPS was $0.12, up from $0.05.

• Professional services revenue hit a record $17 million, up 20% year-over-year; backlog up 14% year-over-year but down 10% sequentially.

• Gross margin improved to 52% (52.2%), up 400 basis points from last year.

• Cash and short-term investments stood at $18.6 million (CAD 30.5 million) with no debt; $2.8 million used for share buybacks and $2.5 million paid in dividends.

Outlook and guidance

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

• Pipeline remains robust despite elongated decision cycles and macroeconomic headwinds; Elite SaaS product margins running over 75% on latest infrastructure.