Agilysys (AGYS) Q4 2026 earnings summary

Executive summary

• Achieved record sales, revenue, and profitability in Q4 and full fiscal year 2026, with all-time highs across multiple business segments and geographies.

• Subscription SaaS sales grew 30.2% year-over-year, with gaming subscription sales up 27% and managed food services sales more than doubling.

• Customer retention rates remain world-class, fueling recurring revenue growth and market share gains.

• AI-driven product innovation and operational efficiencies are accelerating, with new AI-native modules launched and rapid development cycles.

• Net income for FY 2026 was $38.8M, with adjusted net income of $50.8M and earnings per share of $1.37.

Financial highlights

• Q4 2026 revenue reached $82.9M, up 11.7% year-over-year; full-year revenue was $319.3M, up 15.9% from the prior year.

• Recurring revenue for the year was $205.9M, up 21.1%; subscription revenue was $137.1M, up 30.2%.

• Adjusted EBITDA for the year was $67.7M (21.2% of revenue), up from $53.8M.

• Free cash flow for the year was $68.1M, up from $52.3M.

• Gross margin for Q4 was 64.4%, up from 60.7% in the prior year; full-year gross margin was 62.6%.

Outlook and guidance

• FY 2027 revenue expected between $365M and $370M, with recurring revenue growth around 20% and subscription revenue growth at least 30%.

• Adjusted EBITDA margin expected to rise to 24% for FY 2027, with Q1 at 16%-17% and Q4 exit rate near 30%.

• Product revenue expected to remain flat; services revenue to grow 5%-10%.

• Large PMS rollout included in guidance, expected to span at least two years.