Logility Supply Chain Solutions (LGTY) Q2 2025 earnings summary

Executive summary

• Achieved strong Adjusted EBITDA and earnings from continuing operations in Q2 FY25, driven by 9% year-over-year growth in subscription revenue, despite project delays and elongated sales cycles.

• Total revenues declined 2% to $25.3 million in Q2 FY25, mainly due to lower services, maintenance, and license revenue.

• Company completed rebranding to Logility Supply Chain Solutions, Inc., aligning with its AI-first strategy, and eliminated dual-class share structure.

• No single client accounted for more than 10% of total revenue; international revenue represented 22% of total.

Financial highlights

• Q2 FY25 total revenues were $25.3 million, down from $25.7 million year-over-year; subscription revenue grew 9% to $14.5 million, while professional services revenue declined 10% to $3.6 million.

• Maintenance revenues declined 13% year-over-year to $7.1 million, partly due to divestiture.

• Gross margin improved to 65% from 64% year-over-year; subscription fee margin rose to 68%.

• GAAP net earnings from continuing operations were $1.7 million ($0.05 per diluted share); adjusted net earnings were $3.8 million ($0.11 per share), up from $2.9 million ($0.08 per share) last year.

• Adjusted EBITDA was $3.8 million, down from $4.1 million year-over-year; EBITDA margin was 15% of revenues.

Outlook and guidance

• FY25 total revenue guidance revised to $101–$105 million, with recurring revenue expected at $87–$89 million; Adjusted EBITDA guidance maintained at $15–$16.4 million.

• Delays in project starts and deal closures expected to impact professional services revenue recognition in FY25.

• Management expects continued demand for supply chain solutions but notes that economic uncertainty and capital spending trends may impact future results.