Tecsys Inc.

Q1 fiscal 2027 total revenue was CAD 50 million, up from CAD 46 million in Q1 last year, for 9% growth (8% constant currency). Total SaaS revenue grew 18% to CAD 22.7 million from CAD 19.1 million, while Elite SaaS revenue grew 24% year over year (23% constant currency). Total SaaS ARR was CAD 93.7 million, up 18% year over year, and Elite SaaS ARR was CAD 89.6 million, up 24% year over year (22% constant currency). SaaS RPO was CAD 259.2 million, up 14% year over year (13% constant currency). Net profit was CAD 3.1 million, or CAD 0.21 per diluted share, versus CAD 0.8 million last year; Adjusted EBITDA was CAD 6.9 million versus CAD 3.2 million last year. The company ended the quarter with CAD 35 million in cash and short-term investments and no debt. FY2027 guidance was raised to Elite SaaS revenue growth of 21%-23% (from 18%-20%), total SaaS revenue growth of 16%-18% (from 13%-15%), total revenue growth of 5%-8% (from 2%-4%), and Adjusted EBITDA margin of 11%-14% (from 11%-13%).

Peter Brereton said the quarter was among the strongest in Tecsys’ history, driven by record bookings, especially expansions within the installed base. He emphasized that healthcare customers are deepening their use of the Elite platform, while TecsysIQ and better ROI-based selling are helping create urgency in the pipeline. He also highlighted continued FedRAMP progress, growing AI-related product work, and a culture he described as consistent and scalable.

Mark Bentler framed Q1 as an exceptional quarter with record SaaS bookings for a first quarter, record total revenue, and record Adjusted EBITDA. He cited total revenue of CAD 50 million, net profit of CAD 3.1 million, Adjusted EBITDA of CAD 6.9 million, cash and short-term investments of CAD 35 million, and no debt. He also said the board approved a quarterly dividend of CAD 0.09 per share, noted share repurchases of 17,400 shares for about CAD 0.6 million, and said the company expects some measured hiring and investment ahead. On gross margin, he said SaaS gross margin is very close to the 70% target, and that expansion bookings are coming in at 80%+ incremental margins.

Analysts pressed on what drove the booking beat, whether Q1 was a pull-forward of delayed deals, and how much was expansions versus new logos. Management said the quarter was heavily expansion-led, with new account bookings light seasonally, but also said the pipeline had grown substantially over the prior year and was now converting, with activity high across both new accounts and expansions. Questions also focused on FedRAMP timing, U.S. hospital spending, and legacy OrderDynamics attrition; management said FedRAMP is in the auditor review stage and expects late-winter or early-spring certification, hospitals are largely ignoring political noise, and non-core OrderDynamics ARR is now under 5% of the business and should become much less material after this fiscal year.