Supply chain software provider Tecsys' Q2 revenue hits record on SaaS strength

Tecsys

03/12/2025 22:24

Overview

Tecsys fiscal Q2 total revenue hits record, driven by 22% SaaS revenue growth

Adjusted EBITDA for fiscal Q2 rises 71% yr/yr, reaching C$5 mln

Company repurchased 79,714 shares under Normal Course Issuer Bid

Outlook

Tecsys maintains FY26 guidance for total revenue growth of 8-10%

Company expects FY26 SaaS revenue growth of 20-22%

Tecsys anticipates moderation in professional services revenue next quarter

Result Drivers

SAAS REVENUE - SaaS revenue increased by 22% to C$19.7 mln, driven by disciplined execution and scalability

PROFESSIONAL SERVICES - Professional services revenue grew 20% amid robust implementation activity, but moderation expected next quarter

AWS MARKETPLACE - Elite™ now available on AWS Marketplace, providing faster, trusted deployment of technology

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Income
C$1.80 mln
Q2 Adjusted EBITDA
C$5 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Tecsys Inc is C$48.50, about 40.6% above its December 2 closing price of C$34.50

The stock recently traded at 56 times the next 12-month earnings vs. a P/E of 53 three months ago

Press Release: ID:nCNWqGpkza

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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.)