Agilysys Announces Record Revenue of $76.7M in Fiscal 2026 First Quarter

About this update from Agilysys, Inc.

Includes Subscription Revenue Growth of 44% Quarter Adjusted EBITDA of $12.5M and Adjusted EPS of $0.33 Raises Full Year Subscription Revenue Growth Guidance to 27% ALPHARETTA, Ga. --(BUSINESS WIRE)-- Agilysys, Inc. (NASDAQ: AGYS), a leading global provider of hospitality software solutions and services, today reported results for its fiscal 2026 first quarter ending June 30, 2025 . Summary of Fiscal 2026 First Quarter Financial Results Total net revenue increased 20.7% to a record $76.7 million compared to total net revenue of $63.5 million in the comparable prior-year period. Recurring revenue (comprising subscription and maintenance charges) was a record $48.6 million , or 63.4% of total net revenue, compared to $38.0 million , or 59.9% of total net revenue for the same period in fiscal 2025. Subscription revenue increased 44.3% year-over-year and was 65.6% of total recurring revenue compared to 58.1% of total recurring revenue in the first quarter of fiscal 2025. Gross margin was 61.7% in the fiscal 2026 first quarter compared to 62.8% in the comparable prior-year period. Net income in the fiscal 2026 first quarter was $4.9 million , or $0.17 per diluted share, compared to $14.1 million , or $0.50 per diluted share, in the comparable prior-year period. Adjusted EBITDA (non-GAAP) was $12.5 million compared to $12.1 million in the comparable prior-year period (reconciliation included in financial tables). Adjusted diluted EPS (non-GAAP) was $0.33 per share in the fiscal 2026 first quarter compared to $0.30 per share in the comparable prior-year period (reconciliation included in financial tables). Free cash flow (non-GAAP) in the fiscal 2026 first quarter was $(5.0) million compared to free cash flow of $0.2 million in the fiscal 2025 first quarter (reconciliation included in financial tables). Ending cash balance was $55.6 million compared to ending cash balance of $73.0 million as of fiscal 2025 year-end. Ramesh Srinivasan , President and CEO of Agilysys , commented, “We are pleased to report our 14th consecutive record revenue quarter representing an approximate 21% year-over-year top line growth driven by 44% growth in subscription revenue including Book4Time and 16% growth in professional services revenue. Fiscal 2026 first quarter, April to June, was our second highest selling success quarter, 24% higher than the comparable prior year period, measured in annual contract value terms. We continue to enjoy excellent selling momentum with consistent, robust demand for the modernized state-of-the-art cloud-native ecosystem of hospitality focused software solutions. Strong sales drove the recurring and services revenue backlog to record levels, despite strong implementation success and record services revenue. Given the current sales and project implementation velocity, we expect full fiscal year 2026 subscription revenue to grow 27% year-over-year, higher than the original guidance of 25%. The remaining components of our guidance remain unchanged. As previously stated, all these guidance numbers exclude any significant subscription revenue contribution from the major PMS project that we continue to make good progress on” Srinivasan concluded. Fiscal 2026 Outlook The Company is raising full year subscription revenue growth guidance to 27% year-over-year while maintaining full year fiscal 2026 total revenue to be $308 million to $312 million . Adjusted EBITDA expectations remain at 20% of revenue for the full fiscal year. Subscription revenue growth expectations exclude any material revenue from the large scale PMS project currently in progress. Dave Wood , Chief Financial Officer, commented, “We are very pleased with the continued business momentum during Q1, especially with increasing sales and faster deployment of subscription revenue projects causing us to raise expectations to 27% growth over the prior fiscal year. Sales remained strong throughout the quarter, including with respect to point of sale products compared to the prior year. We are continuing to execute at the elevated levels we saw as we exited fiscal year 2025 and are well positioned to achieve our 2026 fiscal year financial plan.” 2026 First Quarter Conference Call and Webcast Agilysys is hosting a conference call and webcast today, July 21, 2025 , at 4:30 p.m. ET . Both the call and the webcast are open to the public. Interested parties can register for the call at https://register-conf.media-server.com/register/BI5fd78d369536434fa424efe4f0122f4a . After registration, an email confirmation with a personalized PIN will be provided along with further access details. Please plan to register 15 minutes prior to the presentation to receive confirmation and further instruction in a timely manner. Interested parties can also access the conference call live through the Events and Presentations section of the Investor Relations page of Agilysys.com . Approximately two hours after the call has concluded, an archived version of the webcast will be available for replay at the same location. Forward-Looking Language This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “outlook,” “forecast,” “preliminary,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “would,” “could,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, our revenue, subscription revenue and Adjusted EBITDA guidance for the 2026 fiscal year. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated herein and in other filings and statements include, among others, the impact macroeconomic factors may have on the overall business environment, our ability to achieve our fiscal 2026 guidance, maintaining sales momentum, the company's ability to convert the backlog into revenue, and the Risk Factors described in the Company’s filings with the Securities and Exchange Commission , including the Company’s reports on Form 10-K and Form 10-Q. Additionally, references to "record" financial and business levels in this document refer only to the time period after Agilysys made the transformation to an entirely hospitality focused software solutions company in FY2014. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement that may be made from time to time, whether written or oral, whether as a result of new information, future developments or otherwise. Use of Non-GAAP Financial Information To supplement the unaudited consolidated financial statements presented in accordance with U.S. GAAP in this press release, certain non-GAAP financial measures as defined by the SEC rules are used. These non-GAAP financial measures include EBITDA, Adjusted EBITDA, adjusted net income, adjusted basic earnings per share, adjusted diluted earnings per share and free cash flow. Management believes that such information can enhance investors’ understanding of the Company’s ongoing operations. The Company has included the following non-GAAP financial measures in this press release: adjusted net income, adjusted basic earnings per share and adjusted diluted earnings per share. The Company believes these non-GAAP financial measures provide valuable insight into the Company’s overall profitability from core operations before certain non-cash and non-recurring charges. The Company defines adjusted net income as net income before amortization expense (including amortization of developed technology), share-based compensation, other (gains) and charges, net, and legal settlements, less the related income tax effect of these adjustments, as applicable, at the Company's current combined federal and state income statutory tax rate and tax events as defined in the accompanying tables and defines adjusted earnings per share as adjusted net income divided by basic and diluted weighted average shares outstanding. See the accompanying tables below for the definitions and reconciliation of these non-GAAP measures to the most closely related GAAP measures. About Agilysys Agilysys exclusively delivers state-of-the-art software solutions and services that help organizations achieve High Return Hospitality™ by maximizing Return on Experience (ROE) through interactions that make ‘personal’ profitable. Customers around the world use Agilysys Property Management Systems (PMS), Point-of-Sale (POS) solutions and Food & Beverage Inventory and Procurement (I&P) systems to consistently delight guests, retain staff and grow margins. Agilysys’ 100% hospitality customer base includes branded and independent hotels; multi-amenity resorts; casinos; property, hotel and resort management companies; cruise lines; corporate dining providers; higher education campus dining providers; food service management companies; hospitals; lifestyle communities; senior living facilities; stadiums; and theme parks. Agilysys operates across the Americas , Europe , the Middle East , Africa , Asia-Pacific , and India with headquarters located in Alpharetta, GA. For more information visit Agilysys.com . - Financial tables follow - AGILYSYS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended June 30 , (In thousands, except per share data) 2025 2024 Net revenue: Products $ 9,954 $ 9,874 Subscription and maintenance 48,623 38,043 Professional services 18,098 15,595 Total net revenue 76,675 63,512 Cost of goods sold: Products 6,199 5,226 Subscription and maintenance 9,983 8,108 Professional services 13,199 10,310 Total cost of goods sold 29,381 23,644 Gross profit 47,294 39,868 Gross profit margin 61.7 % 62.8 % Operating expenses: Product development 17,454 14,720 Sales and marketing 11,793 7,014 General and administrative 10,755 10,483 Depreciation of fixed assets 944 838 Amortization of internal-use software and intangibles 1,457 251 Other charges, net 256 550 Legal settlements 114 265 Total operating expense 42,773 34,121 Operating income 4,521 5,747 Other income (expense): Interest income 447 1,782 Interest expense (217 ) — Other income (expense), net 98 (157 ) Income before taxes 4,849 7,372 Income tax benefit (41 ) (6,734 ) Net income $ 4,890 $ 14,106 Weighted average shares outstanding - basic 27,794 27,134 Net income per share - basic: $ 0.18 $ 0.52 Weighted average shares outstanding - diluted 28,289 28,127 Net income per share - diluted: $ 0.17 $ 0.50 AGILYSYS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) June 30 , 2025 (Unaudited) March 31 , 2025 ASSETS Current assets: Cash and cash equivalents $ 55,564 $ 73,041 Accounts receivable, net of allowance for expected credit losses of $925 and $627 , respectively 35,057 31,529 Contract assets 3,814 4,523 Inventories 6,623 5,174 Prepaid expenses and other current assets 7,469 9,260 Total current assets 108,527 123,527 Property and equipment, net 16,200 16,718 Operating lease right-of-use assets 16,154 17,114 Goodwill 136,103 130,640 Intangible assets, net 71,993 70,802 Deferred income taxes, non-current 67,099 66,520 Other non-current assets 9,970 9,049 Total assets $ 426,046 $ 434,370 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 14,279 $ 12,388 Contract liabilities 65,389 70,654 Accrued liabilities 12,284 22,324 Operating lease liabilities, current 5,602 5,658 Total current liabilities 97,554 111,024 Deferred income taxes, non-current 11,526 10,986 Operating lease liabilities, non-current 16,306 17,304 Debt, non-current 12,000 24,000 Other non-current liabilities 5,441 5,170 Commitments and contingencies Shareholders' equity: Common shares, without par value, at $0.30 stated value; 80,000,000 shares authorized; 33,342,288 shares issued; and 28,035,462 and 28,015,775 shares outstanding at June 30, 2025 and March 31, 2025 , respectively 10,003 10,003 Treasury shares, 5,306,826 and 5,326,513 at June 30, 2025 and March 31, 2025 , respectively (1,595 ) (1,600 ) Capital in excess of stated value 114,996 109,785 Retained earnings 165,870 160,980 Accumulated other comprehensive loss (6,055 ) (13,282 ) Total shareholders' equity 283,219 265,886 Total liabilities and shareholders' equity $ 426,046 $ 434,370 AGILYSYS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended June 30 , (In thousands) 2025 2024 Operating activities Net income $ 4,890 $ 14,106 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation of fixed assets 944 838 Amortization of internal-use software and intangibles 1,457 213 Amortization of developed technology acquired 166 38 Deferred income taxes (556 ) (8,861 ) Share-based compensation 5,029 4,429 Changes in operating assets and liabilities (16,276 ) (9,665 ) Net cash (used in) provided by operating activities (4,346 ) 1,098 Investing activities Capital expenditures (633 ) (869 ) Net cash used in investing activities (633 ) (869 ) Financing activities Debt repayments (12,000 ) — Repurchase of common shares to satisfy employee tax withholding (924 ) (925 ) Net cash used in financing activities (12,924 ) (925 ) Effect of exchange rate changes on cash 426 (84 ) Net decrease in cash and cash equivalents (17,477 ) (780 ) Cash and cash equivalents at beginning of period 73,041 144,891 Cash and cash equivalents at end of period $ 55,564 $ 144,111 AGILYSYS, INC. RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA (UNAUDITED) Three Months Ended June 30 , (In thousands) 2025 2024 Net income $ 4,890 $ 14,106 Income tax benefit (41 ) (6,734 ) Income before taxes 4,849 7,372 Depreciation of fixed assets 944 838 Amortization of internal-use software and intangibles 1,457 251 Amortization of developed technology acquired 166 38 Interest expense (income), net (230 ) (1,782 ) EBITDA (a) 7,186 6,717 Share-based compensation 5,029 4,429 Other charges, net 256 550 Other non-operating (income) expense, net (98 ) 157 Legal settlements 114 265 Adjusted EBITDA (b) $ 12,487 $ 12,118 (a) EBITDA, a non-GAAP financial measure, is defined as net income before income taxes, interest income (net of interest expense), depreciation and amortization (including amortization of developed technology) (b) Adjusted EBITDA, a non-GAAP financial measure, is defined as net income before income taxes, interest income (net of interest expense), depreciation and amortization (including amortization of developed technology), and excluding charges relating to i) share-based compensation, ii) other (gains) and charges, net, iii) other non-operating expense (income), and iv) legal settlements AGILYSYS, INC. RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME FOR ADJUSTED EARNINGS PER SHARE (UNAUDITED) Three Months Ended June 30 , (In thousands, except per share data) 2025 2024 Net income $ 4,890 $ 14,106 Amortization of developed technology acquired 166 38 Amortization of internal-use software and intangibles 1,457 251 Share-based compensation 5,029 4,429 Other charges, net 256 550 Legal settlements 114 265 Tax events (a) (1,025 ) (10,180 ) Income tax adjustments (1,602 ) (1,148 ) Adjusted net income (b) $ 9,285 $ 8,311 Basic weighted average shares outstanding 27,794 27,134 Diluted weighted average shares outstanding 28,289 28,127 Adjusted basic earnings per share (c) $ 0.33 $ 0.31 Adjusted diluted earnings per share (c) $ 0.33 $ 0.30 (a) Tax events include excess tax benefits or expense related to share-based compensation, release of valuation allowances against deferred income taxes, and changes in uncertain tax positions (b) Adjusted net income, a non-GAAP financial measure, is defined as net income before amortization expense (including amortization of developed technology), share-based compensation, other (gains) and charges, net, and legal settlements, less the related income tax effect of these adjustments, as applicable, at the Company’s current combined federal and state income statutory tax rate and, as defined under (a) above, tax events (c) Adjusted earnings per share, a non-GAAP financial measure, is defined as adjusted net income divided by basic and diluted weighted average shares outstanding AGILYSYS, INC. RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (UNAUDITED) Three Months Ended June 30 , (In thousands) 2025 2024 Net cash (used in) provided by operating activities $ (4,346 ) $ 1,098 Capital expenditures (633 ) (869 ) Free cash flow (a) $ (4,979 ) $ 229 (a) Free cash flow, a non-GAAP financial measure, is defined as net cash provided by operating activities, less capital expenditures View source version on businesswire.com : https://www.businesswire.com/news/home/20250721272723/en/ Investor Contact: Jessica Hennessy Senior Director Corporate Strategy & Investor Relations Agilysys, Inc. 770-810-6116 or [email protected] Source: Agilysys, Inc.

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