The following is a summary of the Tecsys Inc. (TCYSF) Q2 2025 Earnings Call Transcript:

Financial Performance:

• Tecsys Inc. reported a significant year-over-year SaaS revenue growth of 34%, reaching $16.1 million in Q2.

• Gross margin improved to 48%, up from 44% in the same period last year, primarily due to increasing SaaS margins and Professional Services strength.

• Net profit for the quarter was $758,000, a turnaround from a net loss of $340,000 in the corresponding quarter of the previous year.

• Adjusted EBITDA was $2.9 million in Q2, compared to $1.0 million in Q2 of the previous year.

Business Progress:

• Achieved annual recurring revenue of $100 million and SaaS RPO surpassing $200 million, indicating robust business health and solid foundation.

• Launched version 24.2 of the Elite product, enhancing data utilization for client solutions.

• Extended market reach and presence through partnerships with firms like Locus Robotics and inclusion in the Shopify App Store.

• Conducted successful industry-specific engagements, such as the Pharmacy Summit, and secured significant market recognitions like the 2024 WMS Technology Value Matrix.

Opportunities:

• Continued expansion in healthcare and pharmacy sectors, with a strong pipeline indicating high buyer intent and potential for substantial growth.

• Strategic partnership approach aimed at enhancing scalability and tapping into new market opportunities globally.

• Introduction of innovative SaaS solutions targeting specific use cases to foster essential business operations.

Risks:

• Potential disruptions in general distribution markets due to evolving tariffs and geopolitical shifts may impact sub-segments of the business.

More details: TECSYS INC IR

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