Agilysys (AGYS) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 revenue of $80.4 million, marking the 16th consecutive record revenue quarter, up 15.6% year-over-year.

• Subscription revenue grew 23.1% year-over-year, now 67% of recurring revenue, with recurring revenue comprising 64.7% of total revenue.

• Net income for the quarter was $9.9 million ($0.35 per diluted share), up from $3.8 million ($0.14) in the prior year.

• The acquisition of Book4Time in August 2024 expanded SaaS offerings and contributed $15.7 million in subscription revenue for the nine months ended December 31, 2025.

• Raised full-year FY2026 revenue guidance to $318 million, reflecting strong sales momentum and product expansion.

Financial highlights

• Q3 product revenue was $10.7 million, flat year-over-year; professional services revenue increased 22% year-over-year to $17.7 million.

• Gross profit was $50.2 million (62.5% margin), up from $43.9 million (63% margin) in the prior year.

• Operating income was $11.7 million, net income $9.9 million, and diluted EPS $0.35, all significantly above prior year levels.

• Adjusted EBITDA for Q3 was $17.3 million (21.5% margin), with year-to-date adjusted EBITDA at 19.5% of revenue.

• Cash and cash equivalents stood at $81.5 million as of December 31, 2025.

Outlook and guidance

• Fiscal 2026 full-year revenue guidance raised to $318 million, at the top end of the range.

• Subscription revenue growth guidance maintained at 29% year-over-year, with Q1FY26 guidance at 27% year-over-year.

• Adjusted EBITDA margin guidance remains at 20% for the full year.

• Expect continued top and bottom-line growth into fiscal 2027, with profitability expected to improve further.

• Management expects continued investment in product innovation, international expansion, and operational efficiency.