Canada's Sylogist Q1 revenue falls 9.7%, suspends dividend amid transition

Sylogist

12/05/2026 12:39

Overview

Canada public sector SaaS firm's Q1 revenue fell 9.7% yr/yr

Company posted net loss of C$3.8 mln and adjusted EBITDA margin of 7.9%

Company suspended quarterly dividend and repurchased 95,000 shares under NCIB program

Outlook

Company expects SaaS transition to drive stronger recurring revenue growth over time

Sylogist increasing emphasis on operational efficiency and partner-led project delivery

Company says transition may create short-term pressure on project services revenue

Result Drivers

BUSINESS MODEL TRANSITION - Co said shift to partner-led project delivery and SaaS model created short-term pressure on project services revenue

RECURRING REVENUE MIX - Recurring revenue made up 75% of total revenue, with SaaS ARR up 7% yr/yr and total ARR up 3% yr/yr

Company press release: ID:nGNX189p7s

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
C$14.7 mln
Q1 Gross Margin
57%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

Wall Street's median 12-month price target for Sylogist Ltd is C$4.88, about 30% above its May 11 closing price of C$3.75

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)