Mr. Craig O'Neill reports

SYLOGIST ANNOUNCES FIRST QUARTER 2026 RESULTS

Sylogist Ltd. has released its financial results for the three months ended March 31, 2026.

Q1 2026 highlights

• SaaS (software-as-a-service) ARR (annual recurring revenue) up 7 per cent year over year to $33.6-million;
• Total ARR up 3 per cent year over year to $45.6-million;
• Gross profit margin of 57 per cent;
• Recurring revenue at 75 per cent of total revenue;
• Net loss of $3.8-million;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margin of 7.9 per cent, or $1.2-million.

"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 chief executive officer 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 (normal course issuer bid) 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 Toronto Stock Exchange 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 a.m. 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 a.m. ET

Participant toll-free dial-in number:  1-833-752-3805

Participant international dial-in number:  1-647-846-8841

This conference call will be recorded and available for replay on the company's website.

About Sylogist Ltd.

Sylogist provides mission-critical SaaS solutions to public sector customers globally across the government, non-profit and education market segments. The company's stock is traded on the TSX under the symbol SYZ.

We seek Safe Harbor.