Agilysys Reports Record Revenue for Fiscal 2025

Agilysys, Inc., a global provider of hospitality software solutions and services, has announced its financial results for the fiscal 2025 fourth quarter and full year ending March 31, 2025. The company reported record revenues and significant growth in subscription revenue, reflecting strong demand for its cloud-native hospitality software solutions.

Financial Highlights

For the fiscal 2025 fourth quarter, Agilysys reported a total net revenue of $74.3 million, marking a 19.4% increase compared to the same period in the previous year. Recurring revenue, which includes subscription and maintenance charges, reached a record $46.2 million, representing 62.2% of total net revenue. Subscription revenue alone saw a year-over-year increase of 42.7%.

Gross margin for the quarter was 60.7%, slightly down from 61.5% in the prior-year period. Net income attributable to common shareholders was $3.9 million, or $0.14 per diluted share, compared to $3.0 million, or $0.11 per diluted share, in the same period last year. Adjusted EBITDA for the quarter was $14.8 million, up from $11.0 million in the prior-year period.

For the full fiscal year 2025, total net revenue increased by 16.1% to a record $275.6 million. Recurring revenue for the year was $170.1 million, or 61.7% of total net revenue. Subscription revenue grew by 39.5% year-over-year. The company achieved a record adjusted EBITDA of $53.8 million and free cash flow of $52.3 million.

Business and Operational Highlights

Agilysys experienced significant growth in its subscription and services revenue, with subscription revenue increasing by 39.5% and services revenue by 27.7% for the full year. The company also noted success in its professional services hiring efforts, which contributed to record highs in services revenue and annual subscription revenue value of projects installed in the field.

The fourth quarter was particularly strong for sales, with customer demand for Agilysys' cloud-native hospitality software solutions driving the sum of product, recurring revenue, and services backlog to the highest levels seen thus far.

Strategic Initiatives and Corporate Developments

During fiscal 2025, Agilysys completed the acquisition of Book4Time, which contributed to the company's subscription revenue growth. The company also managed through operational challenges related to the end stages of product modernization efforts and experienced accelerating sales demand for its modernized cloud-native software ecosystem.

Management's Perspective

Ramesh Srinivasan, President and CEO of Agilysys, expressed satisfaction with the company's performance, highlighting the 13th consecutive record quarter for overall revenue. He noted the strong demand for Agilysys' hospitality software solutions and the successful execution of services implementation, which drove record highs in services revenue and subscription revenue value of projects installed in the field.

Dave Wood, Chief Financial Officer, described fiscal 2025 as a transformational year for Agilysys, citing record sales and strong year-over-year subscription revenue growth. He emphasized the company's focus on executing its FY26 financial plan, driven by a record sales year and a significant backlog.

Future Outlook

Looking ahead to fiscal 2026, Agilysys expects full-year revenue to be in the range of $308 million to $312 million, with a 25% year-over-year growth in subscription revenue. Adjusted EBITDA is expected to be 20% of revenue for the full fiscal year. The company's guidance assumes no material subscription revenue contribution from the current large-scale PMS project in progress.

SEC Filing: AGILYSYS INC [ AGYS ] - 8-K - May. 19, 2025