Logility Supply Chain Solutions (LGTY) Q2 2025 earnings summary

Executive summary

• Achieved 9% year-over-year growth in subscription revenue for Q2 FY25, despite a 2% decline in total revenue due to project delays, lower services and maintenance revenue, and elongated sales cycles.

• Net earnings from continuing operations were $1.7 million, with GAAP operating income of $1 million and adjusted EBITDA of $3.8 million.

• Company rebranded to Logility Supply Chain Solutions, Inc., completed reclassification of Class B Common Stock, and eliminated its dual-class share structure.

• Bookings were skewed toward existing clients, with new solutions like Network Optimization and AI platform LeIA gaining traction.

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

Financial highlights

• Q2 FY25 total revenues were $25.3 million, down 2% from $25.7 million year-over-year.

• Subscription revenue grew 9% year-over-year to $14.5 million, with recurring revenues representing 85% of total revenues.

• Maintenance revenue declined 13% to $7.1 million, and professional services revenue dropped 10% to $3.6 million.

• Gross margin was 65%, up from 64% last year; subscription fee margin was 68%.

• Adjusted net earnings for Q2 FY25 were $3.8 million ($0.11 per share), up from $2.9 million ($0.08 per share) year-over-year.

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.

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