Tecsys (TCS) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 2026 SaaS revenue of $20.1M, up 17% year-over-year, and record adjusted EBITDA, up 43%, driven by strong bookings in healthcare and distribution verticals, with no migration bookings included.

• Net profit for Q3 2026 was $1.7M, up 45% year-over-year, with EPS rising to $0.12 from $0.08.

• Commercial launch of TecsysIQ, an AI intelligence layer, to enhance data unification and actionable insights for healthcare customers.

• Pipeline at quarter-end increased 30% year-over-year, reflecting robust demand and market momentum.

• Implemented a 7% workforce reduction post-quarter, expected to yield $8.1M in annual cost savings, with a $4.5M restructuring charge in Q4.

Financial highlights

• SaaS ARR reached $83.3M, up 10% (16% constant currency) year-over-year; Elite SaaS ARR grew 17% (23% constant currency).

• Q3 2026 total revenue was $48.5M; gross margin improved to 51% from 47% year-over-year.

• Adjusted EBITDA for Q3 was $5M, up from $3.5M; margin improved to 10.4%.

• Year-to-date (nine months) SaaS revenue was $58.9M, up 21%; total revenue for the period was $143.1M, up 10%.

• SaaS RPO was $248.9M, up 18% (24% constant currency) year-over-year.

Outlook and guidance

• Full-year FY26 guidance reaffirmed: SaaS revenue growth of 20%-22%, total revenue growth of 8%-10%, and adjusted EBITDA margin of 8%-9%.

• Q4 professional services revenue expected to be similar to Q3, reflecting backlog trends.

• Projected SaaS margin expansion, with Elite SaaS product margins running over 75% on latest infrastructure.

• Adjusted EBITDA margin guidance for FY26 at mid-point, with directional targets for FY27 and FY28.

• Quarterly dividend of $0.09/share declared, payable April 15, 2026.