Sylogist Announces First Quarter 2026 Results

Q1 2026 Highlights

				Revenue (in $ millions)
SaaS Subscription				Recurring				Total
Reported		Y/Y growth		Reported		Y/Y growth		Reported		Y/Y growth
$8.1		4.9%		$11.1		1.1%		$14.7		(9.7)%

• SaaS ARR up 7% Y/Y to $33.6 million;
• Total ARR up 3% Y/Y to $45.6 million;
• Gross Profit margin of 57%;
• Recurring Revenue at 75% of Total Revenue;
• Net Loss of $3.8 million; and
• Adjusted EBITDA¹ margin of 7.9% or $1.2 million
  
  

CALGARY, Alberta, May 12, 2026 (GLOBE NEWSWIRE) -- Sylogist Ltd. (TSX:SYZ) (“Sylogist” or the “Company”), a leading public sector SaaS company, today announced its financial results for the three months ended March 31, 2026.

“The Company remains focused on completing the final steps in its transformation to a dynamic SaaS business model,” said Craig O’Neill, Interim President and CEO of Sylogist. “Following several years of investment, we are now proving the value of our cloud-based products with our customers and partners. We are also increasing our emphasis on operational efficiency and go-to-market performance, including the ongoing transition to partner-led project delivery. Although this transition has created short-term pressure on project services revenue, we believe it will enable greater scalability as our SaaS products gain traction in our target markets and ultimately drive stronger recurring revenue growth.”

Dividend and NCIB Update

The Company also announced that, in order to support its capital allocation priorities, its Board of Directors has approved the suspension of the Company’s quarterly dividend.

In February 2026, the TSX approved the renewal of the Company's NCIB program, under which the Company repurchased 95,000 common shares at an average price of $3.84 per share during the first quarter. The Company intends to continue utilizing the program as a preferred means of returning capital to shareholders.

The Company will host a conference call at 8:30 AM Eastern Time on May 12, 2026, to review its three-month financial results and business performance.

Conference Call Details:
Date: Tuesday, May 12, 2026
Time: 8:30 AM ET
Participant Toll-Free Dial-In Number: + 1-833-752-3805
Participant International Dial-In Number: + 1-647-846-8841

Webcast link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=30dgwU0X

This conference call will be recorded and available for replay on the Company’s website.

About Sylogist

Sylogist provides mission-critical SaaS solutions to public sector customers globally across the government, nonprofit, and education market segments. The Company’s stock is traded on the Toronto Stock Exchange under the symbol SYZ. Information about Sylogist can be found at sedarplus.ca or at sylogist.com.

Forward-looking Statements

This news release contains “forward-looking information” within the meaning of applicable securities legislation. Although the forward-looking information is based on what the Company believes are reasonable assumptions, current expectations, and estimates, investors are cautioned from placing undue reliance on this information since actual results may vary from the forward-looking information. Forward-looking information may be identified by the use of forward-looking terminology such as “believe”, “assume”, “intend”, “may”, “will”, “expect”, “estimate”, “anticipate”, “continue”, “could”, “should”, “can”, “outlook” or similar terms, variations of those terms or the negative of those terms, and the use of the conditional tense as well as similar expressions.

Such forward-looking information that is not historical fact, including statements based on management’s beliefs and assumptions, cannot be considered as guarantees of future performance. They are subject to a number of risks and uncertainties, including but not limited to future economic conditions, the markets that the Company serves, the actions of competitors, major new technological trends, and other factors, many of which are beyond the Company’s control, that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. The forward-looking information contained in this news release is expressly qualified by this cautionary statement. The Company undertakes no obligation to update publicly any forward-looking information whether because of new information, future events or otherwise other than as required by applicable legislation. Important risk factors that may affect these expectations include, but are not limited to, the factors described under the section “Risks and Uncertainties” found in the Company’s Annual Information Form for the fiscal period ended December 31, 2025, and in the Management’s Discussion and Analysis for the quarter ended March 31, 2026 and for the year ended December 31, 2025 and other documents available on the Company’s profile at www.sedarplus.ca. Readers are cautioned that the foregoing list of factors is not exhaustive.

Actual results and developments may differ, in some cases materially, from those expressed or implied by the forward-looking statements contained in this news release. Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about: (i) competitive environment; (ii) operating risks; (iii) the Company’s management and employees; (iv) capital investment by the Company’s customers; (v) customer project implementations; (vi) liquidity; (vii) current global financial and geopolitical conditions; (viii) implementation of the Company’s commercial strategic plan; (ix) access to credit sources and the terms of such financing; (x) potential product liabilities and other lawsuits to which the Company may be subject; (xi) additional financing and dilution; (xii) market liquidity of the Company’s common shares; (xiii) development of new products; (xiv) intellectual property and other proprietary rights; (xv) acquisition and expansion; (xvi) foreign currency; (xviii) technology and regulatory changes, including the impact of artificial intelligence; (xix) internal information technology infrastructure and applications and; (xx) cyber security; (xxi) the continued availability, support and strategic direction of third-party technology platforms, including Microsoft’s product lifecycle decisions; (xxii) the absence of material environmental, social or governance requirements affecting the Company’s operations or capital expenditures; (xxiii) the ability of third-party partners to deliver services and generate sales in accordance with the Company’s expectations; and (xxiv) successful completion of the CEO transition and effectiveness of new leadership. Certain information set out herein may be considered as “financial outlook” within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding Sylogist’s reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.

Non-IFRS Financial Measures
This news release refers to certain non-IFRS measures. These non-IFRS measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similarly titled measures reported by other companies. These measures are provided as additional information to complement measures under IFRS by providing further understanding of the Company’s expected results of operations from management’s perspective. Accordingly, such measures should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. Bookings, Adjusted EBITDA, Adjusted EBITDA Margin, Annualized Recurring Revenue (“ARR”), Software as a Service (“SaaS”) ARR, and SaaS Net Revenue Retention (“NRR”), are non-IFRS financial measures.

• Bookings refer to the ARR value of contractually committed new SaaS and maintenance and support customer accepted contracts during the reporting period.
• Adjusted EBITDA is calculated as earnings before interest expense, interest income, income taxes, depreciation and amortization, stock-based compensation, foreign exchange gains/losses and the impact of acquisition and restructuring and divestitures incurred in a given reporting period.
• Adjusted EBITDA Margin refers to Adjusted EBITDA as a percentage of revenue.
• ARR is defined as the annualized value of contractually committed SaaS and maintenance and support services. This quantification assumes that customers will renew the contractual commitment on a periodic basis as they come up for renewal unless the customer has notified the Company of its intention to cancel. This portion of the Company’s revenue is predictable and stable.
• SaaS ARR refers to ARR attributable to SaaS customer contracts.
• SaaS NRR refers to the percentage of beginning of period ARR retained over a given 12-month period inclusive of the impact of contractions, losses and the impact of any additional expansion revenues from customer upgrades within the existing customer base. The Company’s calculation of SaaS NRR includes the impact of customers converting from the Company’s maintenance and support offerings to its SaaS offerings
  
  

Bookings, Adjusted EBITDA, Adjusted EBITDA Margin, ARR, SaaS ARR, and SaaS NRR are provided to investors as alternative methods for assessing the Company’s operating results in a manner that is focused on the Company’s ongoing operations and to provide a more consistent basis for comparison between periods. These measures should not be construed as alternatives to profit or cash flow from operating activities determined in accordance with IFRS as an indicator of the Company’s performance.

For further information regarding non-IFRS measures used by the Company, please refer to a copy of the financial statements and Management’s Discussion and Analysis of the Company, copies of which are available on Sylogist’s SEDAR+ profile at www.sedarplus.ca.

Currency and Rounding
All amounts in this news release are expressed in millions of Canadian dollars unless otherwise stated. All percentage variations expressed herein have been calculated based on variations resulting from numbers expressed in millions. Any potential differences from similarly calculated percentages in the Company’s financial statements and Management’s Discussion and Analysis are due to rounding and are nonmaterial.

For further information contact:

Jennifer Smith, Investor Relations
LodeRock Advisors
(416) 491-8004
ir@sylogist.com

                                                      

¹ For a reconciliation of “Adjusted EBITDA” to reported “Net Loss” please refer to the Company’s Management Discussion and Analysis for the year ended December 31, 2025, and the quarter ended March 31, 2026, at sedarplus.ca or sylogist.com.

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