Agilysys(AGYS) - 2025 Q3 - Quarterly Results

Revenue Growth - Total net revenue increased 14.9% to a record $69.6 million compared to$ 60.6 million in the prior-year period[10] - Subscription revenue grew 45.1% year-over-year, accounting for 63.8% of total recurring revenue[10] - The company revised its full fiscal year total revenue guidance to approximately $273 million while maintaining at least 38% year-over-year subscription revenue growth[9] Profitability - Adjusted EBITDA for the third quarter was$ 14.7 million, representing an increase from $11.8 million in the prior-year period[10] - Net income attributable to common shareholders for the third quarter was$ 3.8 million, or $0.14 per diluted share, down from$ 76.9 million, or $2.85 per diluted share, in the prior-year period[10] - Adjusted EBITDA for the nine months ended December 31, 2024, was$ 39,028,000, up from $26,088,000 in 2023, representing a growth of 49.5%[30] - Adjusted net income for the nine months ended December 31, 2024, was$ 28,516,000, compared to $20,549,000 in 2023, an increase of 38.8%[31] Cash Flow - Free cash flow for the third quarter was$ 19.7 million, up from $11.3 million in the prior-year period[10] - Free cash flow for the nine months ended December 31, 2024, was$ 25,894,000, compared to $10,721,000 in 2023, indicating a significant increase of 141.5%[32] - The company reported a net cash provided by operating activities of$ 27,976,000 for the nine months ended December 31, 2024, compared to $18,379,000 in 2023, a growth of 52.0%[32] Assets and Liabilities - Total assets increased to$ 443,861,000 as of December 31, 2024, compared to $350,430,000 on March 31, 2024, reflecting a growth of 26.6%[27] - Total current liabilities rose to$ 114,950,000 as of December 31, 2024, compared to $89,371,000 on March 31, 2024, an increase of 28.7%[27] - Cash and cash equivalents decreased to$ 60,761,000 at the end of the period from $144,891,000 at the beginning, a decline of 58.1%[29] Professional Services and Integration - Professional services revenue has returned to more realistic levels as the company completed most of the development phase of a large project[7] - The integration progress of the Book4Time acquisition is on track, contributing to subscription revenue growth[6] Company Outlook - The company is confident in its product ecosystem and future revenue growth opportunities despite short-term headwinds[11] Share-Based Compensation - Share-based compensation for the nine months ended December 31, 2024, was$ 12,656,000, compared to $9,489,000 in 2023, reflecting a rise of 33.0%[30] Goodwill - Goodwill increased significantly to$ 128,544,000 as of December 31, 2024, from $32,791,000 on March 31, 2024, marking a growth of 290.5%[27]