TECSYS Inc. ((TSE:TCS)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call of TECSYS Inc. painted a picture of robust growth and strategic advancements, despite facing some macroeconomic challenges. The sentiment was largely positive, driven by strong SaaS and professional services revenue growth, a record adjusted EBITDA, and significant achievements in the healthcare and technology sectors. However, the company also acknowledged challenges such as macroeconomic factors and non-core customer attrition. Overall, TECSYS is well-positioned for future growth, supported by a strong pipeline and strategic initiatives.
Strong SaaS Revenue Growth
TECSYS Inc. reported a remarkable 22% increase in SaaS revenue, reaching $19.7 million for the quarter. The SaaS Annual Recurring Revenue (ARR) also saw a significant rise, up 16% to $81.1 million compared to the same quarter last year. This growth underscores the company’s strong position in the SaaS market and its ability to deliver value to its customers.
Record Adjusted EBITDA
The company achieved a record adjusted EBITDA of $5.0 million, marking a 71% increase from the same quarter last year. This impressive growth in EBITDA highlights TECSYS’s operational efficiency and its successful cost management strategies.
Professional Services Revenue Growth
Professional services revenue also saw a substantial increase, rising by 20% from the same quarter last fiscal year to a record $17 million. This growth reflects the company’s expanding service offerings and its ability to meet the evolving needs of its clients.
New Platform Availability and Industry Recognition
TECSYS’s Elite platform is now available on the AWS marketplace, marking a significant step in their cloud strategy. Additionally, the company was recognized as a leader in the 2025 WMS Technology Value Matrix by Nucleus Research, further solidifying its reputation in the industry.
Healthcare Pipeline Growth
The healthcare pipeline experienced a 60% growth compared to the same time last year, with notable traction in pharmacy markets. This growth indicates TECSYS’s strong foothold in the healthcare sector and its potential for future expansion.
Impact of Macroeconomic Factors
Despite the positive growth metrics, TECSYS faced challenges due to macroeconomic factors. Long decision cycles, influenced by U.S. healthcare policy changes, tariffs, and supply chain uncertainties, slowed bookings. These factors highlight the external challenges impacting the company’s operations.
Attrition in Non-Core Customers
Attrition among a small group of non-core customers had a notable impact on the company, with churn being significantly larger than the favorable FX impact. This attrition underscores the importance of customer retention strategies for TECSYS.
Forward-Looking Guidance
Looking ahead, TECSYS maintains a positive outlook with robust growth metrics. The company expects full-year SaaS revenue growth of 20% to 22%, total revenue growth of 8% to 10%, and an adjusted EBITDA margin of 8% to 9%. The availability of the Elite platform on the AWS marketplace is expected to enhance their cloud strategy and customer reach, positioning TECSYS for continued success.
In conclusion, TECSYS Inc.’s earnings call highlighted a strong performance with significant growth in SaaS and professional services revenues, a record adjusted EBITDA, and strategic advancements in the healthcare and technology sectors. Despite facing macroeconomic challenges and customer attrition, the company is well-positioned for future growth, supported by a robust pipeline and strategic initiatives.