TECSYS Inc. (TCS) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone. Welcome to Texas Fiscal Year 2026 First Quarter Results Conference Call. Please note that the complete first quarter report, including MD&A and financial statements, were filed on Cedar Plus after market close yesterday. All dollar amounts are expressed in Canadian currency and are prepared in accordance with international financial reporting standards. Some of the statements in this conference call, including the question and answer period, may include forward-looking statements that are based on management's beliefs and assumptions. Actual results may differ materially from such statements. I would like to remind everyone that this call is being recorded on Friday, September 5, 2025, at 8.30 a.m. Eastern Time. I would now like to turn the conference call over to Mr. Peter Brighton, Chief Executive Officer at Texas. Please go ahead. Thank you. Good morning, everyone. Joining me today is Mark Bentley, our Chief Financial Officer. We appreciate you joining us for today's call. I'm pleased to report a strong start to fiscal 26. SAS revenue in Q1 grew 25% year-over-year to $19.1 million, driving total revenue of $46 million, up 9% from last year, or 13% excluding hardware revenue. Adjusted EBITDA was also strong at $3.2 million, up 24% from the same quarter last year. These results reflect the strength of our SAS model and the resilience of demand across our target markets. SAS ARR at the end of Q1 was $79.3 million, up $2.8 million in the quarter. Driving the increase in the quarter was the additional booking of yet another new health system in the U.S. and continued expansions and migrations across our base of hospital networks like Life Sciences, and general distribution customers. On top of that, we added a major biomedical brand as a new log...