Tecsys Inc., an industry-leading supply chain management SaaS company, announced its results for the third quarter of fiscal 2025, ended January 31, 2025. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS).
“This quarter, we achieved record revenue driven by strong growth in SaaS. We’re seeing diversified activity across key sectors, from major health systems to healthcare 3PLs as well as industrial distributors. Our pharmacy supply chain solutions continue to drive strong market activity.” said Peter Brereton, president and CEO of Tecsys.
Mark Bentler, chief financial officer of Tecsys, added, “We are experiencing strong momentum in our SaaS business, coupled with increasing profitability. We’re pleased to see Adjusted EBITDA scaling effectively, up 33% year-to-date.”
Third quarter highlights:
- SaaS revenue increased by 22% to $17.3 million, up from $14.2 million in Q3 2024.
- SaaS subscription bookingsi (measured on an ARRi basis) were $4.0 million compared to $4.9 million in the third quarter of fiscal 2024.
- SaaS Remaining Performance Obligation (RPOi) increased by 34% to $210.2 million at January 31, 2025, up from $157.2 million at the same time last year.
- Total revenue increased to a record $45.2 million compared to $43.8 million in Q3 2024.
- Net profit was $1.2 million or $0.08 per share on a fully diluted basis in Q3 2025, compared to a net profit of $0.8 million or $0.05 per share for the same period in fiscal 2024.
- Adjusted EBITDAii was $3.5 million compared to $2.6 million reported in Q3 last year.
- In the third quarter of fiscal 2025, Tecsys acquired 38,200 of its outstanding common shares for approximately $1.7 million as part of its ongoing Normal Course Issuer Bid, compared to 50,400 shares acquired in the same period last year for approximately $1.5 million.
Year-to-date performance for first nine months of fiscal 2025
- SaaS revenue increased by 29% to $48.7 million, up from $37.7 million in the same period of fiscal 2024.
- SaaS subscription bookingsi (measured on an ARRi basis) increased by 3% to $10.8 million, compared to $10.5 million in the same period of fiscal 2024.
- Total revenue increased to $129.9 million compared to $127.3 million in the same period of fiscal 2024.
- Net profit was $2.7 million ($0.19 per basic share or $0.18 per fully diluted share) in the first nine months of fiscal 2025, compared to a net profit of $1.6 million ($0.11 per basic and fully diluted share) for the same period in fiscal 2024.
- Adjusted EBITDAii was $9.1 million compared to $6.8 million reported in the same period of fiscal 2024.
- In the first nine months of fiscal 2025, Tecsys acquired 149,400 of its outstanding common shares for approximately $6.0 million as part of its ongoing Normal Course Issuer Bid, compared to 76,200 shares acquired in the same period last year for approximately $2.2 million.
Financial guidance:
Tecsys is maintaining its FY25 guidance for SaaS revenue growth of 30-32% and Adjusted EBITDA margins of 8-9% for FY25 and 10-11% for FY26. We saw strong Q3 Professional Services bookings and year-over-year growth in SaaS bookings; however, the timing of these bookings is expected to result in full-year AEBITDA margins and SaaS revenue being at the lower end of the guidance range.
Overall, based on actual third quarter hardware shipments and visibility into overall fourth quarter revenue, the Company is raising its fiscal 2025 total revenue growth guidance from flat to 1-3% growth and will provide fiscal 2026 guidance with its Q4 and full-year fiscal 2025 earnings release.
On March 5, 2025, the Company declared a quarterly dividend of $0.085 per share to be paid on April 16, 2025 to shareholders of record on March 26, 2025.
Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be “eligible” dividends.
i See Key Performance Indicators in Management’s Discussion and Analysis of the Q3 2025 Financial Statements.
ii See Non-IFRS Performance Measures in Management’s Discussion and Analysis of the Q3 2025 Financial Statements
Q3 2025 Financial Results Conference Call
Date: March 6, 2025
Time: 8:30 a.m. ET
Phone number: 800-836-8184 or 646-357-8785
The call can be replayed until March 13, 2025, by calling:
888-660-6345 or 646-517-4150 (access code: 14330#)
