Tecsys Q1 SaaS revenue misses estimates

Tecsys

04/09/2025 22:19

Removes SaaS revenue reference from headline and first bullet in Overview section; corrects Key Details table to say co reported Q1 revenue of C$46 mln, not C$19.10 mln

Overview

Supply chain management software provider Tecsys misses fiscal Q1 revenue expectations

Adjusted EBITDA rises 24% to C$3.2 mln, missing estimates

Company maintains full fiscal 2026 guidance for revenue and EBITDA growth

Outlook

Tecsys maintains FY26 revenue growth guidance at 8-10%

Company expects FY26 SaaS revenue growth of 20-22%

Tecsys projects FY26 adjusted EBITDA margin of 8-9%

Company confident in FY26 outlook due to strong pipeline

Result Drivers

SAAS REVENUE GROWTH - 25% increase in SaaS revenue driven by expanded sales pipeline and successful user conference

PROFESSIONAL SERVICES - 20% growth in professional services revenue due to robust implementation activity

BANGALORE CONTRIBUTION - New Bangalore location contributing to product development and overall results

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
C$46 mln
C$47 mln (3 Analysts)
Q1 EPS
C$0.05
Q1 Net Income
C$800,000
Q1 Adjusted EBITDA
Miss
C$3.20 mln
C$3.37 mln (3 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "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$48.00, about 25% above its September 3 closing price of C$36.00

The stock recently traded at 54 times the next 12-month earnings vs. a P/E of 60 three months ago

Press Release: ID:nCNWdptSpa

(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.)