Tecsys Posts Record Q1 Revenue and Raises Fiscal 2027 Outlook

Tecsys Inc. reported record first-quarter results for fiscal 2027, with total revenue rising 9% year over year to C$50 million. The company’s adjusted EBITDA more than doubled to C$6.9 million from C$3.2 million in the prior-year period, while net profit surged 306% to C$3.1 million, or C$0.21 per diluted share. CEO Peter Brereton attributed the performance to a second-highest bookings quarter in the company’s history, primarily driven by expansion among existing clients.

According to data from GN markets/earnings (en-US), the growth was fueled by existing customers deepening their reliance on Tecsys platforms. SaaS revenue increased 18% to C$22.7 million, with Elite SaaS revenue growing 24% to C$89.6 million in annual recurring revenue. The company also reported that remaining performance obligations surpassed C$250 million for the first time, reaching C$259.2 million, indicating a robust backlog of contracted future revenue.

Healthcare expansions drive bookings growth

Healthcare organizations were the primary source of new bookings during the quarter. Brereton cited expansions at Prisma Health, UT Southwestern Medical Center, and a leading cancer treatment center. At Prisma Health, South Carolina’s largest private nonprofit health system, Tecsys extended its deployment beyond warehouse and pharmacy inventory to include hospital point-of-use technology. This expansion is designed to improve supply-chain visibility for clinical teams supporting 1.6 million patients annually across 19 hospitals.

While healthcare led the activity, Tecsys also recorded SaaS migrations from general-distribution customers like Rinchem and secured a new European life-sciences client. Brereton noted that first-quarter bookings were heavily skewed toward expansions rather than new accounts. He described new-account activity as typical for the summer quarter, while legacy on-premise migrations have diminished as that customer base has largely transitioned to SaaS models.

SaaS metrics show accelerated recurring revenue

The shift toward subscription-based revenue continued to accelerate. Total SaaS annual recurring revenue reached C$93.7 million, up 18% from the previous year. Elite SaaS ARR, representing the core product offering, grew 24% to C$89.6 million. The company’s remaining performance obligations, a key indicator of future revenue visibility, increased 14% year over year to C$259.2 million. This growth in contract backlog supports the company’s trajectory toward higher predictable income.

Fiscal 2027 guidance targets higher margins

Tecsys raised its fiscal 2027 outlook based on early SaaS bookings and pipeline strength. The company increased its expected growth ranges for Elite SaaS, total SaaS, and overall revenue. Additionally, the adjusted EBITDA margin outlook was lifted to a range of 11% to 14%. Management cited hardware demand and the efficiency of the SaaS model as key drivers for this improved profitability projection. The company expects these trends to continue supporting its financial performance throughout the fiscal year.