Tecsys (TCS) Q4 2025 earnings summary

Executive summary

• Achieved total revenue of CAD 176.5M for fiscal 2025, up 3% year-over-year, with SaaS revenue growing 29% to CAD 67.1M and ARR reaching CAD 105.1M, an 11% increase.

• SaaS now represents 73% of total ARR, with recurring revenue comprising 56% of total revenue.

• Net profit rose to CAD 4.5M from CAD 1.8M last year, and Adjusted EBITDA increased 39% to CAD 13.4M, driven by SaaS margin expansion.

• Major SaaS deployment milestone with Roche at over 1,000 sites globally; new India subsidiary established to enhance development and support.

• Recognized by Gartner as a Challenger in the Magic Quadrant for WMS for the 14th consecutive year, with 40% of Gartner's healthcare supply chain top 25 using the platform.

Financial highlights

• Q4 SaaS revenue reached CAD 18.4M, up 29% year-over-year; Q4 total revenue was a record CAD 46.6M, up 6% year-over-year.

• Q4 gross margin was 51% (up from 47% last year), net profit was CAD 1.7M (vs. CAD 259,000), and adjusted EBITDA was CAD 4.3M (vs. CAD 2.8M).

• Fiscal 2025 adjusted EBITDA was CAD 13.4M, up 39% year-over-year; EPS was CAD 0.30 (vs. CAD 0.13 last year).

• Cash and short-term investments totaled CAD 39.3M at year-end, up from CAD 35.6M, with no debt.

• Professional services revenue hit a record CAD 16.2M in Q4, up 13% year-over-year, and ended the year with a record backlog of CAD 49M, up 52%.

Outlook and guidance

• Fiscal 2026 SaaS revenue growth guidance is 20%-22%; total revenue growth guidance is 8%-10%.

• Adjusted EBITDA margin guidance revised to 8%-9% due to increased R&D and marketing investments; adjusted EBITDA growth expected at 20%-30%.

• Projected SaaS margin expansion, with consolidated SaaS margin expected to reach 75% by FY28.

• Focused on expanding in healthcare and distribution, with robust pipeline and strong buyer intent across verticals.

• Key themes for 2026: continued investment in product and marketing, AI-driven innovation, and customer satisfaction.