Agilysys(AGYS) - 2026 Q1 - Quarterly Results

Financial Highlights & Business Update Agilysys achieved its 14th consecutive record revenue quarter, driven by strong subscription growth, despite a decrease in GAAP net income Q1 FY2026 Financial Highlights (YoY) | Metric | Q1 FY2026 | Q1 FY2025 | Change | | :--- | :--- | :--- | :--- | | Total Net Revenue | $76.7M | $63.5M | +20.7% | | Recurring Revenue | $48.6M | $38.0M | +27.9% | | Subscription Revenue | $31.9M (approx) | $22.1M (approx) | +44.3% | | Net Income | $4.9M | $14.1M | -65.2% | | Adjusted EBITDA | $12.5M | $12.1M | +3.3% | | Adjusted Diluted EPS | $0.33 | $0.30 | +10.0% | | Free Cash Flow | $(5.0)M | $0.2M | N/A | - The company achieved its 14th consecutive record revenue quarter, with top-line growth of approximately 21% YoY[4] - Q1 FY2026 was the second-highest selling quarter in the company's history, with annual contract value 24% higher than the same period last year, leading to record levels of recurring and services revenue backlog[5] Fiscal 2026 Outlook Agilysys raised its FY2026 subscription revenue growth guidance while maintaining total revenue and Adjusted EBITDA margin forecasts - The company raised its full fiscal year 2026 subscription revenue growth guidance to 27% year-over-year, an increase from the original guidance of 25%[6][7] - Full year fiscal 2026 total revenue guidance is maintained at $308 million to $312 million[7] - Adjusted EBITDA expectations for the full fiscal year remain at 20% of revenue[7] Financial Statements This section presents the consolidated financial statements, detailing Q1 FY2026 performance, including income, balance sheet, and cash flow changes Condensed Consolidated Statements of Operations Q1 FY2026 Income Statement (in thousands) | Line Item | Q1 2026 (ended Jun 30, 2025) | Q1 2025 (ended Jun 30, 2024) | | :--- | :--- | :--- | | Total net revenue | $76,675 | $63,512 | | Gross profit | $47,294 | $39,868 | | Gross profit margin | 61.7% | 62.8% | | Total operating expense | $42,773 | $34,121 | | Operating income | $4,521 | $5,747 | | Net income | $4,890 | $14,106 | | Net income per share - diluted | $0.17 | $0.50 | Condensed Consolidated Balance Sheets Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $55,564 | $73,041 | | Total current assets | $108,527 | $123,527 | | Total assets | $426,046 | $434,370 | | Total current liabilities | $97,554 | $111,024 | | Debt, non-current | $12,000 | $24,000 | | Total shareholders' equity | $283,219 | $265,886 | | Total liabilities and shareholders' equity | $426,046 | $434,370 | Condensed Consolidated Statements of Cash Flows Q1 FY2026 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2026 (ended Jun 30, 2025) | Q1 2025 (ended Jun 30, 2024) | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(4,346) | $1,098 | | Net cash used in investing activities | $(633) | $(869) | | Net cash used in financing activities | $(12,924) | $(925) | | Net decrease in cash and cash equivalents | $(17,477) | $(780) | | Cash and cash equivalents at end of period | $55,564 | $144,111 | Reconciliation of GAAP to Non-GAAP Financial Measures This section reconciles GAAP to non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow Reconciliation of Net Income to EBITDA and Adjusted EBITDA Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q1 2026 (ended Jun 30, 2025) | Q1 2025 (ended Jun 30, 2024) | | :--- | :--- | :--- | | Net income | $4,890 | $14,106 | | EBITDA | $7,186 | $6,717 | | Adjusted EBITDA | $12,487 | $12,118 | Reconciliation of Net Income to Adjusted Net Income Adjusted Net Income & EPS Reconciliation (in thousands, except per share data) | Line Item | Q1 2026 (ended Jun 30, 2025) | Q1 2025 (ended Jun 30, 2024) | | :--- | :--- | :--- | | Net income | $4,890 | $14,106 | | Adjusted net income | $9,285 | $8,311 | | Diluted weighted average shares outstanding | 28,289 | 28,127 | | Adjusted diluted earnings per share | $0.33 | $0.30 | Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Free Cash Flow Reconciliation (in thousands) | Line Item | Q1 2026 (ended Jun 30, 2025) | Q1 2025 (ended Jun 30, 2024) | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(4,346) | $1,098 | | Capital expenditures | $(633) | $(869) | | Free cash flow | $(4,979) | $229 | Supplementary Information This section provides administrative and legal details, including conference call information, forward-looking statements, and a corporate profile - The company hosted a conference call and webcast on July 21, 2025, to discuss the quarterly results[9] - The press release contains forward-looking statements, including revenue and Adjusted EBITDA guidance, which are subject to risks and uncertainties[11][12] - Agilysys is a global provider of hospitality software solutions, serving a wide range of customers including hotels, resorts, casinos, cruise lines, and stadiums[17][19]