Agilysys (AGYS) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 FY2025 revenue of $69.6 million, up 14.9% year-over-year, driven by strong subscription growth and Book4Time integration, marking the 12th consecutive record revenue quarter.

• Subscription revenue grew 45.1% year-over-year, now 63.8% of recurring revenue; recurring revenue reached $44.4 million.

• Completed the strategic acquisition of Book4Time for $147.2 million, expanding SaaS offerings, global reach, and customer base by over 30%.

• Added 12 new customers in Q3, 11 of which were fully subscription-based, and 88 new properties, with 86 on subscription.

• Maintains a strong focus on hospitality software solutions, with a comprehensive product suite and global presence.

Financial highlights

• Q3 recurring revenue reached $44.4 million, up 26.4% year-over-year, now 63.8% of total revenue.

• Adjusted EBITDA for Q3 was $14.7 million (21.1% margin), up from $11.8 million a year ago; adjusted EPS was $0.38, up from $0.35.

• Free cash flow for Q3 was $19.7 million, up from $11.3 million in the prior year quarter.

• Cash and equivalents stood at $60.8 million as of December 31, 2024, down from $144.9 million at prior fiscal year-end, reflecting acquisition and investment activity.

• For the nine months ended December 31, 2024, total revenue rose 14.9% to $201.4 million, with net income of $19.3 million.

Outlook and guidance

• FY2025 total revenue guidance revised to $273 million, down from previous outlook, due to one-time product revenue challenges.

• Subscription revenue growth expected to remain at least 38% for the year.

• Adjusted EBITDA expected to be 18% of revenue for the full fiscal year.

• Profitability remains above plan, with gross margin expected to stay just above 60%.

• POS sales expected to recover in coming quarters, with a strong pipeline for both POS and PMS.