Logility Supply Chain Solutions (LGTY) Q3 2025 earnings summary

Executive summary

• Revenue for the quarter ended January 31, 2025 decreased 2% year-over-year to $25.0 million, with a net loss of $2.8 million compared to net earnings of $4.1 million in the prior year.

• For the nine months ended January 31, 2025, revenue declined 1% to $76.5 million, and net earnings dropped to $1.0 million from $9.2 million year-over-year.

• Aptean agreed to acquire Logility for $14.30 per share in an all-cash deal, expected to close in Q2 2025, pending shareholder and regulatory approvals.

• No earnings call or financial outlook provided due to the pending transaction.

• The company completed the divestiture of its IT staffing subsidiary, TPM, in September 2023, focusing on core supply chain management solutions.

Financial highlights

• Subscription fees rose 5% for the quarter and 7% for the nine months; license revenue surged 139% and 23%, respectively, year-over-year.

• Professional services and other revenue fell 21% for the quarter and 8% for the nine months; maintenance revenue declined 12% in both periods.

• Gross margin improved to 67% for the quarter and 66% for the nine months, up 3% and 1% year-over-year, respectively.

• Operating loss was $3.5 million for the quarter and $0.6 million for the nine months, compared to operating income of $0.8 million and $3.4 million in the prior year.

• Adjusted EBITDA for the nine months increased 10% to $13.0 million.

Outlook and guidance

• Management expects continued demand for supply chain solutions due to global disruptions, but notes that capital spending decisions may be delayed by clients amid economic uncertainty.

• The merger with Aptean is anticipated to close in the second quarter of calendar 2025, subject to customary conditions.