Tecsys Ups Share Buyback, Betting on Its Own Undervalued Stock

MONTREAL, QC – March 17, 2026 – Tecsys Inc. (TSX: TCS) is making a significant financial bet on its own future, today announcing a substantial expansion of its share repurchase program. The Montreal-based supply chain software provider received approval from the Toronto Stock Exchange to nearly double the size of its Normal Course Issuer Bid (NCIB), increasing the maximum number of shares it can buy back and cancel from 500,000 to 900,000.

This aggressive move, effective for the remainder of the bid period ending September 19, 2026, signals strong conviction from management that the company's stock is currently undervalued by the market. The amended limit represents approximately 6.65% of Tecsys's public float, a notable portion that underscores the seriousness of its capital allocation strategy. The company stated its belief that, from time to time, its market price may not fully reflect its intrinsic value and future prospects, making repurchases an attractive use of corporate funds.

A Confident Bet on Value

The decision to ramp up buybacks comes at a time when market data and analyst sentiment appear to align with Tecsys's assessment of being undervalued. While the company's stock has seen significant fluctuation over the past year, with a 52-week range between $22.51 and $44.86, its current trading level remains well below its peak.

Financial analysts covering the company maintain a consensus "Moderate Buy" rating. The average 12-month price target sits at C$37.50, representing a potential upside of over 38% from recent trading prices. This suggests that industry experts see considerable room for growth, lending credibility to the firm's move to repurchase shares at what it perceives to be a discount. By taking shares off the market, Tecsys aims to increase the proportional ownership for its remaining long-term shareholders, directly enhancing their stake in the company's future success.

Under the terms of the amended NCIB, Tecsys has already been active, having repurchased approximately 216,100 shares as of March 13, 2026. The expanded authorization allows for a more aggressive pace of repurchases, which will be conducted through the TSX and other Canadian trading systems at prevailing market prices.

Balancing Buybacks with the Growth Engine

While a significant buyback can sometimes raise questions about a company's commitment to growth investments, Tecsys appears to be pursuing a dual strategy of rewarding shareholders while simultaneously fueling innovation and expansion. The company's robust financial health provides the foundation for this balanced approach.

Tecsys is actively investing in its technological future, most notably with the recent launch of TecsysIQ, an AI-powered intelligence layer for its software suite. This platform is designed to unify data and enable autonomous supply chain execution, a critical advancement in a rapidly evolving industry. Management anticipates this new AI offering will become a significant driver of recurring revenue and act as a competitive differentiator.

Furthermore, the company is expanding its global footprint. In May 2025, Tecsys established a new subsidiary in India and strategically acquired talent and assets from Pivotree Inc. This C$2.7 million investment is aimed at building a 24/7 global support network and accelerating product development, signaling a clear commitment to long-term growth beyond North American markets. This strategy stands in contrast to some tech giants that are taking on massive debt for infrastructure buildouts, highlighting Tecsys’s more measured approach of using its strong, debt-free balance sheet to fund both shareholder returns and targeted growth initiatives.

Financial Strength and Operational Efficiency

The expanded buyback program is underpinned by a period of exceptional financial performance. Tecsys recently reported stellar results for the third quarter of fiscal 2026, including record SaaS revenue of $20.1 million and record Adjusted EBITDA of $5.0 million, marking a 43% increase year-over-year. For the first nine months of its fiscal year, the company saw SaaS revenue climb 21% and fully diluted earnings per share jump by an impressive 61%.

This performance has left the company in an enviable financial position. As of its last report, Tecsys held $36.2 million in cash and short-term investments with zero debt on its balance sheet. This fortress-like financial standing provides the flexibility to pursue share repurchases without compromising its ability to invest in the business or weather economic uncertainty.

Reinforcing this disciplined approach, Tecsys recently implemented a 7% workforce reduction. While a difficult measure, the company framed the move as a strategic realignment intended to boost operational efficiency and free up capital. The estimated $8.1 million in annual cost savings are slated to be reinvested into high-priority areas, particularly the continued development of its AI capabilities, ensuring the company remains lean and focused on its most promising growth vectors.

Delivering Enhanced Shareholder Value

For investors, the implications of the increased buyback are clear and positive. By purchasing and cancelling nearly a million of its own shares, Tecsys will reduce its total share count, which automatically increases the earnings per share (EPS) for the remaining stock. This can make the stock more attractive to investors and potentially lead to capital appreciation over time.

This move is not an isolated event but rather a continuation of a long-standing, shareholder-friendly capital policy. Tecsys has a consistent track record of returning value to its investors, including an 18-year history of paying dividends. The enhanced NCIB serves as another powerful tool in its arsenal for creating shareholder value.

By leveraging its financial strength, Tecsys is navigating a complex market by simultaneously investing in next-generation technology, expanding its global reach, streamlining its operations for greater efficiency, and directly rewarding the investors who have placed their confidence in its long-term vision.