CORRECTED-Canada's Tecsys misses Q1 revenue estimates

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

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