Agilysys (AGYS) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 FY2025 revenue of $68.3M, up 16.5% year-over-year, driven by strong subscription and professional services growth, marking the 11th consecutive record quarter.

• Completed acquisition of Book4Time, a leading spa management SaaS provider, for $144.9M–$150M, expanding the customer base by over 30% and enhancing cross-sell opportunities.

• Subscription revenue grew 36.6% year-over-year, now comprising 60.5% of recurring revenue.

• Raised full-year FY2025 revenue guidance to $280M–$285M, with at least 38% subscription revenue growth and 18% Adjusted EBITDA margin.

• Added a new Chief Commercial Officer and increased global sales personnel by 50% year-over-year to drive growth.

Financial highlights

• Q2 FY2025 revenue reached $68.3M, up 16.5% year-over-year; Book4Time contributed $2.2M.

• Recurring revenue grew 21% year-over-year to $41.4M, with subscription revenue up 36.6% to $25.1M.

• Adjusted EBITDA for Q2 was $12.2M (17.9% of revenue), up from $8.1M last year.

• Net income attributable to common shareholders was $1.4M ($0.05/diluted share), down from $4.1M ($0.16/diluted share) year-over-year.

• Free cash flow for the quarter was $5.9M, up from $2.5M a year ago; cash and equivalents at quarter-end were $54.9M, down from $144.9M due to the acquisition.

Outlook and guidance

• FY2025 revenue guidance raised to $280M–$285M, with subscription revenue growth expected above 38%.

• Full-year Adjusted EBITDA margin guidance increased to 18%, up from 16% previously.

• Organic subscription revenue growth expected at over 25%, with Book4Time contributing the remainder.

• Management expects continued growth in subscription and maintenance revenue, driven by SaaS migration and international expansion.