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Agilysys (AGYS) Q1 2026 Financial Results Summary

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Agilysys, Inc. (AGYS) Q4 2026 Financial Results Summary

Agilysys, Inc. (NASDAQ: AGYS) released its fourth quarter and full year financial results for fiscal 2026 on May 18, 2026. The company recorded significant growth, marking its 17th consecutive quarter of record revenue.

Summary of Fiscal 2026 Fourth Quarter Financial Results

  • Total Net Revenue: Increased by 11.7% to $82.9 million from $74.3 million in Q4 fiscal 2025.
  • Recurring Revenue: Reached $54.4 million, or 65.5% of total net revenue, up from $46.2 million (62.2% of total).
  • Subscription Revenue: Grew by 24.1% year-over-year, comprising 68.0% of total recurring revenue compared to 64.4% the previous year.
  • Gross Margin: Improved to 64.4%, compared to 60.7% in Q4 fiscal 2025.
  • Net Income: Recorded at $12.3 million or $0.43 per diluted share, an increase from $3.9 million or $0.14 per diluted share.
  • Adjusted EBITDA: Reached a record of $21.5 million, up from $14.8 million.
  • Adjusted Diluted EPS: Increased to $0.63 from $0.54 in the same quarter last year.
  • Free Cash Flow: Achieved a record of $35.4 million, compared to $26.5 million in Q4 fiscal 2025.
  • Ending Cash Balance: Increased to $116.9 million, up from $73.0 million as of fiscal 2025 year-end.

Summary of Full Fiscal Year 2026 Financial Results

  • Total Net Revenue: Increased by 15.9% to a record $319.3 million, compared to $275.6 million in fiscal 2025.
  • Recurring Revenue: Rose to $205.9 million, or 64.5% of total net revenue, compared to $170.1 million (61.7%).
  • Subscription Revenue: Grew by 30.2%, making up 66.6% of total recurring revenue versus 61.9% the prior fiscal year.
  • Gross Margin: Slightly increased to 62.6% from 62.4% in fiscal 2025.
  • Net Income: Increased to $38.8 million or $1.37 per diluted share from $23.2 million or $0.82.
  • Adjusted EBITDA: Set a new record at $67.7 million, up from $53.8 million.
  • Adjusted Diluted EPS: Improved to $1.79 from $1.55.
  • Free Cash Flow: Achieved a record of $68.1 million, compared to $52.3 million in fiscal 2025.

Additional Notes

  • Dividend Declaration: No quarterly dividend was declared in this report.
  • Share Repurchase: The company reported a repurchase of common shares to satisfy employee tax withholding, amounting to $1.943 million compared to $2.743 million in the previous fiscal year.

Fiscal 2027 Outlook

  • Revenue Expectations: Projected revenue is expected to range between $365 million and $370 million, which includes at least 30% year-over-year subscription revenue growth.
  • Adjusted EBITDA: Expected to grow to 24% of revenue.

Conclusion

Agilysys' results show a robust growth trajectory, with substantial increases in revenue, EBITDA, and cash flow metrics. The company is poised for continued growth, leveraging its subscription model and ongoing investments in technology enhancements. The outlook for fiscal 2027 appears optimistic as Agilysys aims to continue its momentum in the hospitality software sector.

AGILYSYS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(In thousands, except per share data)

Note: All amounts are in thousands.

Three Months Ended Year Ended
March 31, 2026 2025 2025
Net revenue
Product $ 10,437 $ 41,168
Subscription and maintenance 54,355 205,941
Professional services 18,154 72,203
Total net revenue 82,946 319,312
Cost of goods sold:
Product 6,167 24,349
Subscription and maintenance 10,779 42,521
Professional services 12,581 52,519
Total cost of goods sold 29,527 119,389
Gross profit 53,419 199,923
Gross profit margin 64.4% 62.6%
Operating expenses
Product development 18,538 72,746
Sales and marketing 9,095 39,776
General and administrative 10,465 42,217
Depreciation of fixed assets 922 3,840
Amortization of internal-use software and intangibles 1,438 5,745
Legal settlements, net 106 267
Total operating expense 40,806 156,908
Operating income 12,613 43,015
Other income (expense)
Interest income 714 1,992
Interest expense (190) (493)
Other income (expense), net 1,828 3,894
Income before taxes 14,965 48,408
Income tax provision 2,671 9,617
Net income $ 12,294 $ 38,791
Weighted average shares outstanding - basic 28,048 27,923
Net income per share - basic $ 0.44 $ 1.39
Weighted average shares outstanding - diluted 28,417 28,389
Net income per share - diluted $ 0.43 $ 1.37

AGILYSYS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

Note: All amounts are in thousands.

March 31, 2026 March 31, 2025
ASSETS
Current assets:
Cash and cash equivalents $ 116,894 $ 73,041
Accounts receivable, net of allowance for expected credit losses 43,069 31,529
Inventories 7,529 5,174
Prepaid expenses and other current assets 12,201 9,260
Total current assets 184,131 123,527
Property and equipment, net 13,950 16,718
Operating lease right-of-use assets 13,823 17,114
Goodwill 133,908 130,640
Intangible assets, net 66,359 70,802
Deferred income taxes, non-current 58,069 66,520
Other non-current assets 11,288 9,049
Total assets $ 481,528 $ 434,370
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 12,445 $ 12,388
Contract liabilities 83,009 70,654
Accrued liabilities 24,333 22,324
Operating lease liabilities, current

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