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.”