Agilysys (AGYS) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 FY2025 revenue of $63.5 million, up 13.3% year-over-year, marking the tenth consecutive record revenue quarter, driven by strong momentum in property management systems, add-on modules, and subscription services.

• Subscription revenue grew 32% year-over-year, with recurring revenue reaching $38 million and comprising 59.9% of total revenue.

• Net income rose sharply to $14.1 million ($0.50 per diluted share), up from $1.1 million ($0.04 per share) in the prior year, reflecting improved margins and a favorable tax benefit.

• Adjusted EBITDA was $12.1 million (19.1% of revenue), nearly double the prior year quarter.

• Free cash flow improved to $0.2 million from a loss of $3 million in the prior year quarter.

Financial highlights

• Gross profit was $39.9 million (62.8% margin), up from $33.1 million (59% margin) in the prior year quarter.

• Operating income was $5.7 million, up from $1.0 million, with an operating income margin of 9%.

• Professional services revenue increased 39.8% to $15.6 million, while product revenue declined 22.7% to $9.9 million.

• Net income per diluted share was $0.50, compared to $0.04 in the prior year quarter.

• Adjusted net income was $8.3 million, up from $4.6 million year-over-year.

Outlook and guidance

• Full-year 2025 revenue expected at the lower end of $275–$280 million, with revenue weighted more toward the second half.

• Confident in at least 27% year-over-year subscription revenue growth and 16% adjusted EBITDA margin guidance.

• Management expects continued investment in product innovation, customer expansion, and international growth to drive future revenue and profitability.