Tecsys (TCS) Q4 2026 earnings summary

Executive summary

• Achieved record Q4 revenue of CAD 50 million (USD 50.0 million) and record full-year revenue of CAD 193.1 million (USD 193.1 million), with SaaS revenue up 20% year-over-year and adjusted EBITDA exceeding guidance by 10%.

• Added major new healthcare customers, including Memorial Hermann Health System and Shepherd Center, and saw new logo bookings rise 33% year-over-year.

• Launched TecsysIQ, an AI-driven intelligence engine, and completed over 30 customer go-lives across North America and Europe.

• Recognized as a trusted provider with over 40 years of experience and a significant presence in Gartner's Magic Quadrant for WMS.

• Partner ecosystem includes major technology and advisory firms, contributing to 24% of the current sales pipeline.

Financial highlights

• Q4 SaaS revenue grew 17% year-over-year to CAD 21.5 million (USD 21.5 million); Elite SaaS revenue up 21%.

• Q4 total revenue reached CAD 50 million (USD 50.0 million), up from CAD 46.6 million last year; Q4 adjusted EBITDA was CAD 6.7 million (USD 6.7 million), up 56%.

• Full-year SaaS revenue was CAD 80.4 million (USD 80.4 million), up 20%; Elite SaaS revenue up 24%.

• Full-year adjusted net profit was CAD 7.5 million, up 67%; adjusted EBITDA was CAD 20 million (USD 20.0 million), up 50% year-over-year, with a 10% EBITDA margin.

• SaaS ARR at CAD 86.8 million (USD 86.8 million), up 13% year-over-year; Elite SaaS ARR up 19%.

Outlook and guidance

• Fiscal 2027 guidance: total revenue growth of 2%-4%, Elite SaaS revenue growth of 18%-20%, total SaaS revenue growth of 13%-15%, and adjusted EBITDA margin of 11%-13%.

• Projected SaaS margin expansion to 70% by FY27 and 75% by FY28, with adjusted EBITDA margin guidance midpoint at 12% for FY27.

• SaaS growth to be driven primarily by new customers and expansions, with minimal impact from legacy migrations.

• Professional services revenue expected to remain stable, supported by a strong pipeline linked to SaaS deals.