TECSYS Inc.

Good morning, everyone. Welcome to Texas fourth quarter and fiscal year 2025 results conference call. Please note that the complete fourth quarter, including MD&A and financial statements, were filed on Cedar Plus after market closed 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 welcome everyone that this call is being recorded on Friday, June 27, 2025, at 8.30 a.m. Eastern Time. I would now like to turn the conference over to Peter Brereton, Chief Executive Officer at Texas. Please go ahead, sir.

Thank you. Good morning, everyone. Joining me today is Mark Bentley, our Chief Financial Officer. We appreciate you joining us for today's call. As both of you have likely seen in the results issued last night, fiscal 2025 has been another strong year for Texas. Tax revenue grew 29% for the year, just shy of our 30% guidance, while our core product elite grew 32%, driven by high-quality multi-site lens and strong adoption in our core markets. Between new logos, renewing and expanding base accounts, and continued migration momentum, we obtained sustained indicators of business health, reflecting steady progress toward our long-term value creation goals, and fast RTO continues to grow. In healthcare, we added two new health system providers in the quarter and completed another large migration. We also saw continued uptake in our pharmacy offerings as more healthcare organizations respond to GFCSA and look to drive efficiency and visibility through their supply chains. Distribution also saw continued growth, with multi-site deals in electrical, industrial, and healthcare distribution, and important new customer additions in both North America and Europe. Our strategy of being selective but deliberate in the markets and geographies we pursue continues to bear fruit. Notably, healthcare distribution has emerged as a dynamic vertical, with increasing demand for scalable inventory management and drug supply chain security act-aligned logistics across the care continuum. Our pipeline is responding accordingly. We also had another standout quarter in professional services. Q4 marked another record for CF revenue, and we ended the fiscal year with the largest professional services backlog in our history at $49 million. That's up 52% over last year. These results indicate strong ongoing demand. That said, we anticipate that professional services revenue will continue to remain variable. influenced by the timing of project deliveries and the level of involvement from integration partners. We also saw several strategic milestones since our last results call. We announced a major milestone with Roche, with our SaaS platform now being progressively deployed at over 1,000 sites globally. This rollout demonstrates the scalability of our system and reinforces the trust that Roche places in us to support their operations across multiple regions. On May 1 of 2025, we announced the establishment of a new subsidiary in India as part of an acquisition that included the hiring of an India-based team. This acquisition enhanced our development and support capacity and capability, positioning us for long-term scalability and growth. As we continued to build momentum in the market, we also saw validation of the capability of our WMS for a 14th consecutive time by Gartner. Included in the Challenger quadrant, we were once again recognized for our product's completeness of vision and ability to execute. This is on top of the fact that Texas customers represent 40% of partners' health care supply chain top 25 list for Challenger 2024. While it came just after our fiscal year end, our Texas user conference was a key event for us. It's a chance to connect with our customers, highlight new products, build stronger relationships and explore new growth opportunities. This year, we had our largest turnout ever, with over 200 customers in progress. We also shared that we'll be making the conference an annual event moving forward, so we'll have this important touchpoint with our customers on a more regular basis. At the user conference, we announced two exciting innovations. First, we introduced an enhanced electronic shelf label, or ESL Plus, which represents an important investment in hospital supply chain management at the point of use. These are bidirectional smart tags that add real-time visual cues and allow clinical teams to reflect additional product or rush orders in real time. Secondly, we unveiled a brand-new data product we're calling Texas IQ, a data layer that interacts with the existing Texas ecosystem. Texas IQ is a major leap forward in applied AI, and the interaction among customers and partners was evident. Built on the Databricks data intelligence platform, Texas IQ helps organizations unify fragmented data and deliver AI-powered insights across clinical, operational, and financial systems. So we have good reason to feel confident about our position in the market, our basic financial rates, our backlog in both staff and professional services, and the strength of our vertical strategy. As we continue to invest in the products we sell and in our go-to-market strategy, Texas is proven to be among the best cloud-based solutions available in the markets we serve. The steady growth we have experienced affirms our vision and strategy for shareholder value. Mark will now provide further details on our fourth quarter and year-to-date financial results, as well as financial guidance on several key measures.

Thank you, Peter. First, I'll focus on fourth quarter fiscal 2025 results. SAS revenue growth was 29%, reaching $18.4 million. SAS bookings were down year on year from a record $8 million last Q4, which was the high watermark so far for quarterly bookings, to $6.5 million this Q4. That $6.5 million, by the way, is the second highest SAS booking quarter in our history. Q4 was another record total revenue quarter at $46.6 million. That was up 6% from the same quarter last year. But if you exclude hardware revenue, that growth was 16%. Professional services revenue for the fourth quarter was a record $16.2 million. That was up 13% from the same quarter last year. We had another solid professional services bookings quarter in Q4. And as Peter noted, we ended the year with record professional services backlog. For the fourth quarter of fiscal 2025, gross margin was 51% compared to 47% in the same period last year. The key drivers here are increasing staff margins as well as strength in professional services margins in the quarter. Net profit in the quarter was $1.7 million compared to $259,000 in the same quarter last year. Fully diluted earnings per share were $0.11 in the current quarter compared to $0.02 in the prior year quarter. Adjusted EBITDA was $4.3 million in Q4 fiscal 2025 compared to $2.8 million in the same quarter last year. Turning briefly to our full fiscal 2025 highlights, SAS revenue for fiscal 2025 was $67.1 million. Again, that's up 29% from last year. SAS bookings for the year were $17.3 million. That was actually down 7% compared to last year. While this will have the impact of moderating SAS revenue growth in fiscal 2026, based on the size and quality of our pipeline, we're optimistic about the future of SAS revenue growth. Our total revenue reached $176.5 million. That was a 3% increase from last year. If you exclude hardware, overall revenue grew by 12%. For fiscal 25, our adjusted EBITDA increased to $13.4 million. That was up from $9.6 million last year. That's a 39% year-on-year increase in adjusted EBITDA. Basic and fully diluted earnings per share for fiscal 25 were $0.30. That compares to $0.13 in the same period last year. We ended fiscal 2025 with a solid balance sheet. We had cash and short-term investments of $39.3 million and no debt. We used about $6.9 million of cash in the year to buy back shares under our normal course issuer bid. Additionally, the board yesterday approved a quarterly dividend of eight and a half cents a share. Turning to financial guidance, we are providing fiscal 26 guidance for fast revenue growth of 20 to 22%, and total revenue growth of 8 to 10%. We've decided to increase our investment in R&D and marketing in fiscal 2026 to drive fast margin growth and fast revenue growth, respectively. As a result, we're revising our fiscal 2026 adjusted EBITDA margin guidance to 8 to 9%. And we expect adjusted EBITDA growth in the range of 20 to 30%. I will now turn the call back to Peter to provide some outlook comments.