Annual Revenue Includes Recurring Revenue of $170.1M and Subscription Revenue Growth of 39.5%

Annual Record Adjusted EBITDA of $53.8M and Free Cash Flow of $52.3M

Annual Revenue Expected To Grow To $308M to $312M In Fiscal 2026 With Full Year Adjusted EBITDA of 20%

ALPHARETTA, Ga., May 19, 2025--(BUSINESS WIRE)--Agilysys, Inc. (NASDAQ: AGYS), a leading global provider of hospitality software solutions and services, today reported results for its fiscal 2025 fourth quarter and full year ending March 31, 2025.

Summary of Fiscal 2025 Fourth Quarter Financial Results

Total net revenue increased 19.4% to a record $74.3 million compared to total net revenue of $62.2 million in the comparable prior-year period. Recurring revenue (comprised of subscription and maintenance charges) was a record $46.2 million, or 62.2% of total net revenue, compared to $36.6 million, or 58.8% of total net revenue for the same period in fiscal 2024. Subscription revenue increased 42.7% year-over-year and was 64.4% of total recurring revenue compared to 57.0% of total recurring revenue in the fourth quarter of fiscal 2024. Gross margin was 60.7% in the fiscal 2025 fourth quarter compared to 61.5% in the comparable prior-year period. Net income attributable to common shareholders in the fiscal 2025 fourth quarter was $3.9 million, or $0.14 per diluted share, compared to $3.0 million, or $0.11 per diluted share, in the comparable prior-year period. Adjusted EBITDA (non-GAAP) was $14.8 million compared to $11.0 million in the comparable prior-year period (reconciliation included in financial tables). Adjusted diluted EPS (non-GAAP) was $0.54 per share in the fiscal 2025 fourth quarter compared to $0.32 per share in the comparable prior-year period (reconciliation included in financial tables). Free cash flow (non-GAAP) in the fiscal 2025 fourth quarter was $26.5 million compared to free cash flow of $29.3 million in the fiscal 2024 fourth quarter (reconciliation included in financial tables). Ending cash balance was $73.0 million compared to ending cash balance of $144.9 million as of fiscal 2024 year-end.

Summary of Full Fiscal Year 2025 Financial Results

Total net revenue increased 16.1% to a record $275.6 million compared to total net revenue of $237.5 million in the comparable prior-year period. Recurring revenue (comprised of subscription and maintenance charges) was a record $170.1 million, or 61.7% of total net revenue, compared to $138.1 million, or 58.1% of total net revenue, for fiscal year 2024. Subscription revenue increased 39.5% year-over-year and was 61.9% of total recurring revenue compared to 54.7% of total recurring revenue in fiscal year 2024. Gross margin was 62.4% in fiscal year 2025 compared to 60.7% in the comparable prior-year period. Net income attributable to common shareholders in fiscal year 2025 was $23.2 million, or $0.82 per diluted share, compared to $85.0 million, or $3.17 per diluted share, in the comparable prior-year period. Adjusted EBITDA (non-GAAP) was a record $53.8 million compared to $37.1 million in the comparable prior-year period (reconciliation included in financial tables). Adjusted diluted EPS (non-GAAP) was $1.55 per share in fiscal year 2025 compared to $1.10 per share in the comparable prior-year period (reconciliation included in financial tables). Free cash flow (non-GAAP) in fiscal year 2025 was $52.3 million compared to free cash flow of $40.1 million in fiscal year 2024 (reconciliation included in financial tables).

Story Continues

Ramesh Srinivasan, President and CEO of Agilysys, commented, "We are pleased with our fourth quarter results, which featured year-over-year subscription revenue growth of 42.7% including Book4Time and services revenue growth of 21.7%, producing the 13th consecutive record quarter for overall revenue. Annual fiscal year 2025 total revenue, subscription revenue and services revenue were also all records, led by subscription growth of 39.5% and services growth of 27.7% for the full year.

"We have had considerable success with our professional services hiring efforts during the recent few months. Fiscal 2025 fourth quarter was an excellent period for services implementation execution, driving to record highs both services revenue and annual subscription revenue value of projects installed in the field."

Srinivasan continued, "Fiscal 2025 fourth quarter was a record quarter for selling success, beating the previous best quarter by a wide margin. Customer demand for the cloud-native state-of-the-art hospitality focused software solution ecosystem we have built diligently over the past several years has continued to accelerate, driving the sum of product, recurring revenue and services backlog to the highest levels we have seen thus far.

"We expect fiscal year 2026 full year revenue to be in the $308 million to $312 million range inclusive of 25% subscription revenue growth and Adjusted EBITDA at 20% of revenue. Our annual guidance assumes no material subscription revenue contribution from the current large-scale PMS project we are working on, which is progressing well," Srinivasan concluded.

Fiscal 2026 Outlook

The Company expects full year fiscal 2026 revenue to be $308 million to $312 million, including 25% year-over-year subscription revenue growth. Adjusted EBITDA is expected to be 20% of revenue for the full fiscal year. Subscription revenue growth expectations exclude any material revenue from the large scale PMS rollout currently in progress.

Dave Wood, Chief Financial Officer, commented, "This was a transformational year for Agilysys. We managed through operational challenges related to the end stages of the product modernization efforts, completed the acquisition of Book4Time and experienced accelerating sales demand for our modernized cloud-native software ecosystem, resulting in record sales during fiscal year 2025. We are pleased with another year of record revenue and strong year-over-year subscription revenue growth. The record sales year has driven backlog to record levels as we focus on the execution of our FY26 financial plan."

2025 Fourth Quarter Conference Call and Webcast

Agilysys is hosting a conference call and webcast today, May 19, 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/BIdacfb34dab2443c0a692a71501be72cf. 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, convertible preferred stock issuance costs, and one-time charges including severance and other charges, impairments and legal settlements, less the related income tax effect of these adjustments, as applicable, 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.

AGILYSYS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED) Three Months Ended
March 31,   Year Ended
March 31,  (In thousands, except per share data)  2025   2024   2025   2024  Net revenue:  Products  $ 10,247   $ 10,983   $ 41,324   $ 49,083  Subscription and maintenance   46,198    36,588    170,051    138,069  Professional services   17,827    14,650    64,249    50,312  Total net revenue   74,272    62,221    275,624    237,464  Cost of goods sold:  Products   6,073    6,294    22,055    26,318  Subscription and maintenance   10,998    8,059    37,464    30,870  Professional services   12,150    9,592    44,117    36,020  Total cost of goods sold   29,221    23,945    103,636    93,208  Gross profit   45,051    38,276    171,988    144,256  Gross profit margin   60.7 %   61.5 %   62.4 %   60.7 % Operating expenses:  Product development   16,562    14,284    62,411    56,739  Sales and marketing   8,322    8,601    33,144    28,439  General and administrative   10,659    9,073    40,832    36,279  Depreciation of fixed assets   941    854    3,679    3,896  Amortization of internal-use software and intangibles   1,082    246    3,859    1,366  Other charges, net   2,030    1,711    4,628    1,756  Legal settlements   145    28    844    28  Total operating expense   39,741    34,797    149,397    128,503  Operating income   5,310    3,479    22,591    15,753  Other income (expense):  Interest income   489    1,503    3,782    5,083  Interest expense   (413 )   —    (1,529 )   —  Other income (expense), net   (13 )   (136 )   791    (152 ) Income before taxes   5,373    4,846    25,635    20,684  Income tax provision (benefit)   1,448    1,885    2,410    (65,511 ) Net income  $ 3,925   $ 2,961   $ 23,225   $ 86,195  Series A convertible preferred stock dividends   —    —    —    (1,204 ) Net income attributable to common shareholders  $ 3,925   $ 2,961   $ 23,225   $ 84,991   Weighted average shares outstanding - basic   27,740    26,913    27,518    25,668   Net income per share - basic:  $ 0.14   $ 0.11   $ 0.84   $ 3.31   Weighted average shares outstanding - diluted   28,282    28,019    28,257    26,842   Net income per share - diluted:  $ 0.14   $ 0.11   $ 0.82   $ 3.17

AGILYSYS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data)  March 31,
2025
(Unaudited)   March 31,
2024  ASSETS  Current assets:  Cash and cash equivalents  $ 73,041   $ 144,891  Accounts receivable, net of allowance for expected credit losses  of $627 and $974, respectively   31,529    29,441  Contract assets   4,523    2,287  Inventories   5,174    4,587  Prepaid expenses and other current assets   9,260    7,731  Total current assets   123,527    188,937  Property and equipment, net   16,718    17,930  Operating lease right-of-use assets   17,114    18,384  Goodwill   130,640    32,791  Intangible assets, net   70,802    16,952  Deferred income taxes, non-current   66,520    67,373  Other non-current assets   9,049    8,063  Total assets  $ 434,370   $ 350,430  LIABILITIES AND SHAREHOLDERS' EQUITY  Current liabilities:  Accounts payable  $ 12,388   $ 9,422  Contract liabilities   70,654    56,148  Accrued liabilities   22,324    19,522  Operating lease liabilities, current   5,658    4,279  Total current liabilities   111,024    89,371  Deferred income taxes, non-current   10,986    554  Operating lease liabilities, non-current   17,304    19,613  Debt, non-current   24,000    —  Other non-current liabilities   5,170    4,415  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 28,015,775  and 27,376,862 shares outstanding at March 31, 2025  and March 31, 2024, respectively   10,003    10,003  Treasury shares, 5,326,513 and 5,965,426 at March 31, 2025  and March 31, 2024, respectively   (1,600 )   (1,791 ) Capital in excess of stated value   109,785    94,680  Retained earnings   160,980    137,755  Accumulated other comprehensive loss   (13,282 )   (4,170 ) Total shareholders' equity   265,886    236,477  Total liabilities and shareholders' equity  $ 434,370   $ 350,430

AGILYSYS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED) Year Ended  March 31,  (In thousands)  2025   2024   Operating activities  Net income  $ 23,225   $ 86,195  Adjustments to reconcile net income to net cash provided by operating activities:  Loss (gain) on asset disposals   25    (1,145 ) Depreciation of fixed assets   3,679    3,896  Amortization of internal-use software and intangibles   3,859    1,366  Amortization of developed technology acquired   461    159  Deferred income taxes   434    (66,353 ) Share-based compensation   17,777    14,111  Changes in operating assets and liabilities:  Accounts receivable   (565 )   (6,996 ) Contract assets   (2,227 )   (36 ) Inventory   (556 )   5,189  Prepaids and other current assets   (84 )   (291 ) Accounts payable   2,185    973  Contract liabilities   5,730    3,965  Accrued liabilities   383    5,659  Income taxes payable, net   (106 )   (1,177 ) Other changes, net   908    2,671  Net cash provided by operating activities   55,128    48,186  Investing activities  Cash paid for business combinations, net of cash acquired   (145,756 )   —  Capital expenditures   (2,783 )   (8,127 ) Proceeds from sale of assets   —    552  Additional investments in corporate-owned life insurance policies   (27 )   (27 ) Net cash used in investing activities   (148,566 )   (7,602 ) Financing activities  Payment of preferred stock dividends   —    (1,663 ) Debt proceeds, net of issuance costs   49,645    —  Debt repayments   (26,000 )   —  Proceeds from Employee Stock Purchase Plan purchases   1,026    —  Repurchase of common shares to satisfy employee tax withholding   (2,743 )   (6,893 ) Principal payments under long-term obligations   —    (2 ) Net cash provided by (used in) financing activities   21,928    (8,558 ) Effect of exchange rate changes on cash   (340 )   23  Net (decrease) increase in cash and cash equivalents   (71,850 )   32,049  Cash and cash equivalents at beginning of period   144,891    112,842  Cash and cash equivalents at end of period  $ 73,041   $ 144,891

AGILYSYS, INC.

RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA

(UNAUDITED) Three Months Ended   Twelve Months Ended  March 31,   March 31,  (In thousands)  2025   2024   2025   2024  Net income  $ 3,925   $ 2,961   $ 23,225   $ 86,195  Income tax provision (benefit)   1,448    1,885    2,410    (65,511 ) Income before taxes   5,373    4,846    25,635    20,684  Depreciation of fixed assets   941    854    3,679    3,896  Amortization of internal-use software and intangibles   1,082    246    3,859    1,366  Amortization of developed technology acquired   160    40    461    159  Interest expense (income), net   (76 )   (1,503 )   (2,253 )   (5,083 ) EBITDA (a)   7,480    4,483    31,381    21,022  Share-based compensation   5,121    4,622    17,777    14,111  Other charges, net   2,030    1,711    4,628    1,756  Other non-operating (income) expense, net   13    136    (791 )   152  Legal settlements   145    28    844    28  Adjusted EBITDA (b)  $ 14,789   $ 10,980   $ 53,839   $ 37,069

(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   Twelve Months Ended  March 31,   March 31,  (In thousands, except per share data)  2025   2024   2025   2024  Net income attributable to common shareholders  $ 3,925   $ 2,961   $ 23,225   $ 84,991  Amortization of developed technology acquired   160    40    461    159  Amortization of internal-use software and intangibles   1,082    246    3,859    1,366  Share-based compensation   5,121    4,622    17,777    14,111  Other charges, net   2,030    1,711    4,628    1,756  Legal settlements   145    28    844    28  Tax events (a)   4,296    577    (1,669 )   (69,067 ) Income tax adjustments   (1,533 )   (1,194 )   (5,322 )   (3,805 ) Adjusted net income (b)  $ 15,226   $ 8,991   $ 43,803   $ 29,539   Basic weighted average shares outstanding   27,740    26,913    27,518    25,668  Diluted weighted average shares outstanding   28,282    28,019    28,257    26,842   Adjusted basic earnings per share (c)  $ 0.55   $ 0.33   $ 1.59   $ 1.15  Adjusted diluted earnings per share (c)  $ 0.54   $ 0.32   $ 1.55   $ 1.10

(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 attributable to common shareholders 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   Twelve Months Ended  March 31,   March 31,  (In thousands)  2025   2024   2025   2024  Net cash provided by operating activities  $ 27,152   $ 29,807   $ 55,128   $ 48,186  Capital expenditures   (701 )   (469 )   (2,783 )   (8,127 ) Free cash flow (a)  $ 26,451   $ 29,338   $ 52,345   $ 40,059

(a) Free cash flow, a non-GAAP financial measure, is defined as net cash provided by operating activities, less capital expenditures

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Contacts

Investor Contact: 
Jessica Hennessy
Senior Director Corporate Strategy & Investor Relations
Agilysys, Inc.
770-810-6116 or [email protected]

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