Agilysys(AGYS) - 2025 Q2 - Quarterly Results

Financial Performance - Total net revenue for Q2 fiscal 2025 reached a record $68.3 million, a 16.5% increase from $58.6 million in the same period last year[3]. - Recurring revenue was a record $41.4 million, accounting for 60.7% of total net revenue, with subscription revenue growing 36.6% year over year[3]. - Gross margin improved to 63.3% in Q2 fiscal 2025, up from 59.9% in the prior year[3]. - Net income attributable to common shareholders was $1.4 million, or $0.05 per diluted share, compared to $4.1 million, or $0.16 per diluted share, in the same quarter last year[3]. - Adjusted EBITDA for Q2 fiscal 2025 was $12.2 million, representing 17.9% of revenue, compared to $8.1 million in the prior year[3][4]. - Total net revenue for the three months ended September 30, 2024, was $68,279,000, an increase of 16.5% compared to $58,616,000 for the same period in 2023[18]. - Subscription and maintenance revenue rose to $41,432,000, up 21% from $34,248,000 year-over-year[18]. - Operating income increased to $4,126,000, reflecting a 15.8% rise from $3,562,000 in the prior year[18]. - Net income for the six months ended September 30, 2024, was $15,470,000, significantly higher than $6,093,000 for the same period in 2023[20]. - Net income for the three months ended September 2024 was $1,364,000, a decrease of 66.6% compared to $4,086,000 for the same period in 2023[22]. - Adjusted net income for the six months ended September 2024 was $17,860,000, a 59.5% increase from $11,232,000 for the same period in 2023[22]. Cash Flow and Balance Sheet - Free cash flow for Q2 fiscal 2025 was $5.9 million, up from $2.5 million in the same quarter last year[3]. - Ending cash balance was $54.9 million, down from $144.9 million at the end of fiscal 2024, influenced by the cash paid for the Book4Time acquisition[3]. - Cash and cash equivalents decreased to $54,888,000 as of September 30, 2024, down from $144,891,000 at the beginning of the period[19]. - The company reported a net cash provided by operating activities of $7,688,000 for the six months ended September 30, 2024, compared to $5,470,000 in the prior year[20]. - The company incurred $144,945,000 in cash paid for business combinations during the six months ended September 30, 2024[20]. Guidance and Future Outlook - The company raised its full-year fiscal 2025 revenue guidance to $280 million to $285 million, with at least 38% year-over-year subscription revenue growth expected[5][6]. - The acquisition of Book4Time is anticipated to expand the customer base and enhance the company's product ecosystem within the hospitality sector[7]. Expenses and Shareholder Metrics - Total operating expenses for the three months ended September 30, 2024, were $39,088,000, up from $31,534,000 in the same period last year[18]. - Share-based compensation expenses increased to $4,009,000 for the three months ended September 2024, up from $2,684,000 in the same period last year, reflecting a 49.3% rise[22]. - Basic weighted average shares outstanding increased to 27,533,000 for the three months ended September 2024, compared to 25,022,000 for the same period in 2023[22]. Earnings Per Share - Adjusted diluted EPS for Q2 fiscal 2025 was $0.34 per share, compared to $0.25 per share in the same quarter last year[3]. - Adjusted diluted earnings per share for the three months ended September 2024 was $0.34, up from $0.25 in the same period last year, reflecting a 36% increase[22].