TECSYS Inc.

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 logo just after the end of the quarter. Importantly, our SaaS pipeline continues to grow with particular strength in pharmacy and key markets within general distribution. In terms of customer momentum, we have a lot to be excited about. From RM educational resources in the UK and life science logistics in the US, to Cornwall Community Hospital in Canada, and entry into one of the world's largest biomedical companies, we are experiencing activity across industries and geographies. We also saw continued uptake in our pharmacy offerings as more healthcare organizations respond to DSCSA and look to drive efficiency and visibility through their supply chains. Together, these examples demonstrate the depth of engagement and the breadth of our solution portfolio. Healthcare distribution continues to be a growth area... growth area for us. We've been talking about DSCSA legislation for a while now, but as of August 27th, this legislation is now officially being enforced. This together with a portfolio of referenceable customers and a proven DSCSA supporting solution is reflected in our pipeline activity. Beyond customer wins, we are investing in the long-term scalability of our business. As mentioned on our last call, we launched operations in India in Q1. I'm pleased to report that our new team in India has ramped up quickly and is already contributing features and code to our core product lines, accelerating delivery for our customers. As we noted on our Q4 call, we hosted our Texas User Conference early in the quarter, and we plan to hold this event annually moving forward. This event is an important opportunity to engage directly with our customers, prospects, and partners. and it has already begun to translate into new business and contribute to our pipeline. On the innovation front, we continue to advance Texas IQ, building on the momentum we introduced in early Q1 at the user conference. By way of reminder, Texas IQ is a data layer that interacts with the existing Texas ecosystem built on the Databricks data intelligence platform. It is a dynamic tool that unifies fragmented data and delivers AI-powered insights, across clinical, operational, and financial systems. Early feedback from customers has been positive. Use cases are being identified, and we remain confident in its role as a differentiator in the market as we roll it out for general availability in the coming months. Continuing with innovation, as part of our upcoming mainline releases, we are excited about launching generative AI capabilities for our WMS and point-of-use solutions. I'm also pleased to share a company culture milestone. Texas has earned a Great Place to Work certification across all of our global operations for a second year in a row, with 92% of our employees rating Texas as a Great Place to Work. We believe this reflects the trust and dedication of our people, which drives the innovation and customer commitments you see in our results. We have good reason to feel confident about our position in the market. Our backlog in both SaaS and professional services and the strength of our vertical strategy. And so 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 modern 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 Q1, as well as financial guidance on several key metrics.