Tecsys (TCS) Q4 2025 earnings summary

Executive summary

• SaaS revenue grew 29% year-over-year to $67.1 million, with core product Elite up 32% and strong multi-site wins in healthcare and distribution; total revenue reached $176.5 million for FY25.

• Net profit for Q4 2025 was $1.7 million (up 560% year-over-year), and full-year net profit was $4.5 million; adjusted EBITDA rose 55% in Q4 and 39% for the year to $13.4 million.

• Professional services revenue hit a record CAD 16.2 million in Q4, with a record backlog of CAD 49 million, up 52% year-over-year.

• Major SaaS deployment milestone with Roche at over 1,000 sites globally; expanded global footprint with new India subsidiary and Tecsys Innovation Lab.

• Recognized by Gartner for the 14th consecutive time in the Challenger quadrant for WMS, with 40% of Gartner's healthcare supply chain top 25 using the platform.

Financial highlights

• Q4 2025 total revenue was $46.6 million, up 6% year-over-year; SaaS revenue was $18.4 million, up 29% year-over-year.

• Q4 gross margin was 51%, net profit was $1.7 million, and adjusted EBITDA was $4.3 million.

• Fiscal 2025 SaaS revenue was $67.1 million, up 29%; total revenue was $176.5 million, up 3% (12% excluding hardware).

• SaaS ARR reached $105.1 million, up 11% year-over-year; SaaS bookings were $6.5 million in Q4.

• Ended FY25 with $27.6 million in cash and equivalents, no debt, and repurchased $6.9 million in shares.

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.