Agilysys, Inc. (NASDAQ: AGYS) Q1 2026 Earnings | 07/22/2025

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Agilysys, Inc. reported record results for its fiscal first quarter ended June 30, 2025, achieving a 20.7% year-over-year rise in total net revenue to $76.7 million, the 14th consecutive record revenue quarter for the company. This growth was chiefly driven by a 44% increase in subscription revenue, which accounted for 65.6% of total recurring revenue during the period. Recurring revenue, combining subscription and maintenance, reached an all-time high of $48.6 million and made up 63.4% of total net revenue, up from 59.9% a year ago. Growth in professional services revenue also contributed, rising 16% year-over-year. The company recorded a gross margin of 61.7%, slightly down from 62.8% in the prior year, reflecting the revenue mix and investments in expanding the professional services team. Net income for the quarter was $4.9 million, or $0.17 per diluted share, compared to $14.1 million, or $0.50 per diluted share, in the same period last year—a decrease primarily due to higher planned operating expenses tied to sales, marketing, and one-time events. Adjusted EBITDA was $12.5 million, up from $12.1 million in the prior year, while adjusted diluted EPS was $0.33, an increase from $0.30. Free cash flow was negative $5.0 million, aligned with typical working capital seasonality, and the company ended the quarter with a strong cash balance of $55.6 million. Management raised its full-year guidance for subscription revenue growth to 27%, up from the previously guided 25%, citing sustained demand for Agilysys’ cloud-native hospitality software and successful new product deployments. Overall fiscal 2026 revenue is expected to range from $308 million to $312 million, and the company reaffirmed expectations for adjusted EBITDA to reach 20% of revenue for the full year. In addition to robust sales of subscription and point-of-sale products, Agilysys continues to invest in research and development, notably integrating new AI-powered features to further differentiate its cloud solutions for the hospitality sector. Agilysys’ leadership emphasized ongoing momentum in booking new deals and rapid implementation of cloud-based solutions, resulting in record backlog and positioning the company for sustained growth. Despite a dip in GAAP net income, adjusted profitability remains solid, reflecting the underlying health and scalability of its business model. #Agilysys #AGYS #Q12026 #Earnings #Software #RecurringRevenue #SaaS #Cloud #Hospitality #FinancialResults #RevenueGrowth #SubscriptionRevenue #ProfessionalServices #AI #POS #AdjustedEBITDA #InvestorRelations #HospitalitySolutions #MarketUpdate #DigitalTransformation #AnnualGuidance #RecordRevenue #InsideTicker