TECSYS Inc.

Good morning everyone. Welcome to Texas Fiscal Year 2027 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 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 remind everyone that this call is being recorded on Friday, September 11, 2026, at 8.30 a.m. Eastern Time. I would now like to turn the conference over to Mr. Peter Brereton, Chief Executive Officer at Texas. Thank you. Please go ahead, sir.

Thank you and good morning everyone. Thank you for joining us to discuss our Q1 2027 results. We're pleased to open fiscal 2027 with one of the strongest quarters in our history. Q1 delivered record bookings, in fact, the second highest bookings quarter Texas has ever recorded, giving us real momentum and visibility as we head into the rest of the year. The story of this quarter was expansion. Our installed base, particularly in healthcare, continued to deepen its commitment to the Texas Elite platform, With existing customers substantially increasing their footprint with us. We're proud to count organizations like Prisma Health, UT Southwestern Medical Center, and a leading cancer treatment center among the health systems that expanded their relationship with Texas during this period. A strong signal of the trust hospitals place in our hospital supply chain platform as they scale their operations. At Prisma Health, South Carolina's largest private nonprofit health system, the expansion extends beyond initial deployments of our warehouse and pharmacy inventory systems to now include our hospital point-of-use technology across their network, giving clinical and supply chain teams greater visibility if they support 1.6 million patients a year across 19 hospitals. Healthcare was the primary driver of this expansion activity, but it wasn't the whole story. We also saw general distribution customers continue their migration to SAS, including Rintem, a large global distribution customer, and we added a notable new logo in Europe with a growing light sciences company. Evidence that our platform resonates well beyond our core North American healthcare base. Turning to our SAS metrics, elite SAS ARR and revenue growth continue to accelerate. Elite SaaS AR grew 24% year-over-year, or 22% in constant currency, and Elite SaaS revenue grew 24% in the quarter, or 23% constant currency. This acceleration reflects both the strength of our SaaS-first strategy and the increasing scale of our Elite platform customer base. We also passed a significant milestone in Q1, with our remaining performance obligation to our RPO crossing the quarter-billion-dollar mark for the first time. reaching $259 million, up 14% year-over-year, or 13% in constant currency. RPO is a key forward indicator of the durability of our SaaS business, and this milestone underscores the growing visibility we have into future revenue. Our strong SaaS bookings and momentum in Q1 give us the confidence to raise our full year fiscal 2027 guidance across the board. Mark will discuss the updated ranges shortly. On the product side, Texas IQ continued to gain momentum in the quarter, helping customers turn supply chain data into faster, more confident operational decisions. We continue to invest in Texas IQ's roadmap with a number of new AI-driven capabilities and early development that we look forward to sharing more about as they mature. We also continue to advance our FedRAMP program throughout the quarter as we work towards full certification. This progress reflects the broader investment we've made in our security and compliance posture, and it's given both public sector and enterprise healthcare customers greater confidence in Texas as a long-term trusted platform partner. We're also proud that our commitment to people and culture, including growth in our team in India, helped earn Great Place to Work certification for a third consecutive year across every country where we operate, with 91% of our employees telling us that Texas is a great place to work. That kind of consistency across every market we operate in is something we don't take for granted as we scale. With that, I'll turn it over to Mark to walk through the financial results and updated guidance in more detail.

Thank you, Peter. As a reminder, our first quarter ended July 31st, 2026. Q1 was an exceptional quarter for Texas, highlighted by record SaaS bookings for first quarter, record total revenue, and Record Adjusted EBITDA. Total SAS revenue grew 18% in Q1, reaching $22.7 million, up from $19.1 million in Q1 last year. That growth was about 17% on a constant currency basis. As Peter mentioned, elite SAS revenue, our core product and the predominant contributor to total SAS revenue, increased by 24% compared to Q1 last year. Atlas 23% growth on a constant currency basis. Total SAS ARR was $93.7 million at July 31st, 2026, up 18% from the same time last year. On a constant currency basis, SAS ARR growth was 17%. You'll notice that we've begun disclosing elite SAS ARR separately in our MD&A. This additional disclosure is intended to highlight the underlying growth trend we have discussed over the past several quarters and provide greater visibility into a key leading indicator of future SAS revenue growth. Elite SAS ARR was 89.6 million at the end of Q1, up 24% year over year, representing 22% growth on a constant currency basis. As Peter mentioned, SAS RPO was $259.2 million at July 31, 2026, up 14% from a year ago, or 13% on a constant currency basis. Professional services bookings were lighter, which brought our PS backlog down somewhat. As a result, we expect PS revenue to tick down slightly on a sequential basis in Q2. It's important to note that it's not uncommon for professional services bookings to follow SaaS bookings with the timing lag. As a result, the strong SaaS bookings in Q1 may not translate into professional services demand until later in Q2 or subsequent periods as customers advance through deployment planning and execution. Q1 fiscal 2027, total revenue was $50 million compared to $46 million in Q1 last year. That's 9% growth, 8% on a constant currency basis. Net profit in Q1 fiscal 27 was $3.1 million, or 21 cents per diluted share. That's up 306% from $0.8 million in Q1 last year. Adjusted EBITDA, $6.9 million in Q1 this fiscal year, up 113%. from 3.2 million same period last year. We ended the quarter with cash and short-term investments of $35 million and no debt. Cash flow from operating activities was particularly strong, driven by profit and strong cash collections. During the quarter, we repurchased 17,400 shares for approximately $0.6 million under our normal course issuer bid. That compares to 21,300 shares for $0.8 million in Q1 last year. Finally, the board yesterday approved a quarterly dividend of $0.09 per share. Moving on now to fiscal 2027 guidance. Based on strong Q1 elite SaaS bookings, continued pipeline strength, and robust hardware bookings, We're raising our fiscal 2027 guidance ranges for elite SAS revenue growth, total SAS revenue growth, total revenue growth, and adjusted EBITDA margin. Our updated guidance for fiscal 2027 is as follows. Elite SAS revenue growth of 21% to 23%. That's up from 18% to 20% in previous times. Total SAS revenue growth of 16 to 18%, and that's up from 13 to 15% previous guidance. Total revenue growth of 5 to 8%, and that's up from previous guidance of 2 to 4%. And finally, adjusted EBITDA margin. We're broadening the range and extending it on the high side to 11 to 14%. and that's up from 11 to 13% previous guidance. I'll now turn the call back to Peter.