Agilysys (AGYS) Q4 2025 earnings summary

Executive summary

• Achieved record FY25 revenue of $275.6M, up 16% year-over-year, with recurring revenue comprising 61.7%–62% of total revenue and subscription revenue growing up to 42.7% in Q4 and 40% for the year.

• The company is transforming into a cloud and subscription-based enterprise, with strong global presence in 118 countries and major hospitality brands.

• The Book4Time acquisition expanded the customer base by over 30% and is expected to contribute meaningfully in FY26.

• Sales pipeline and backlog reached record levels, up 18% and 26% year-over-year, driven by demand for cloud-native hospitality software.

• POS sales rebounded, with Q4 marking the best quarter for POS and managed food services sales.

Financial highlights

• FY25 revenue was $275.6M, up 16% year-over-year, with Q4 revenue at $74.3M, up 19.4%.

• Q4 subscription revenue grew 42.7% year-over-year to $29.8M, representing 64.4% of total revenue.

• Adjusted EBITDA for FY25 was $53.8M, with a margin of 19.5%–20%; free cash flow was $52.3M, up from $40.1M in FY24.

• Net income for FY25 was $23.2M ($0.82 per diluted share); adjusted diluted EPS was $1.55.

• Cash and equivalents at March 31, 2025, were $73M, down from $144.9M, mainly due to acquisition activity.

Outlook and guidance

• FY26 revenue is projected at $308M–$312M, with subscription revenue expected to grow 25% year-over-year.

• Adjusted EBITDA margin is targeted at 20% of revenue.

• Guidance excludes material revenue from the Marriott PMS project due to rollout timing uncertainty.

• Product and professional services revenue are each expected to grow 5–10%; recurring revenue to grow ~15%.