Agilysys Announces Record Revenue of $93.4M in Fiscal 2027 Second Quarter

Agilysys Announces Record Revenue of $93.4M in Fiscal 2027 Second Quarter ALPHARETTA, Ga.--( BUSINESS WIRE)--Agilysys, Inc. (NASDAQ: AGYS), a leading global provider of hospitality software solutions and services, today reported results for its fiscal 2027 second quarter ending September 30, 2026.

Summary of Fiscal 2027 Second Quarter Financial Results

Ramesh Srinivasan, President and CEO of Agilysys, commented, “Revenue was a record $93.4 million during Q2 Fiscal 2027, the 19th consecutive record revenue quarter, driven by subscription growth of 32.6%.

Q2 Fiscal 2027 one-time product revenue was higher than expected as the hospitality industry continues to increase its investments in modern point of sale (POS) technology solutions. The industry also continues to move forward in earnest to implement the modern, cloud-native ecosystem of software solutions that allows them to improve operational efficiencies and deliver great guest experiences. Q2 Fiscal 2027 was yet another record sales quarter, the best ever Q2 July to September sales period, keeping total backlog at record levels despite strong implementation and delivery results.

The business continues to grow ahead of our previous expectations. As a result, we are once again raising full fiscal year total annual revenue guidance to now be in the range of $374 million to $378 million, driven among other things, by an increase in subscription revenue growth, now expected to increase by at least 34% year over year. We expect full fiscal year Adjusted EBITDA to be 25% of revenue, higher than the prior expectation of 24%,” Srinivasan concluded.

Fiscal 2027 Outlook

The Company is raising full year subscription revenue growth guidance of at least 32% year-over-year to at least 34% and full year fiscal 2027 total revenue to be $374 million to $378 million. Adjusted EBITDA expectations are also increasing to 25% of revenue for the full fiscal year.

Dave Wood, Chief Financial Officer, commented, “The second quarter of the fiscal year has continued to yield strong results. The teams are continuing to execute at elevated levels across the board, driven by a sustained high level of sales demand and project implementation velocity. We are pleased to be in a position once again to increase our full year expectations as a result of this continued momentum. The company is well positioned to continue to execute against the current forecasted plan during the second half of the fiscal year.”

2027 Second Quarter Conference Call and Webcast

Agilysys is hosting a conference call and webcast today, October 26, 2026, at 4:30 p.m. ET. Both the call and the webcast are open to the public. Interested parties can register for the call at https://register-conf.media-server.com/register/BIac8a5e2d79e747db9c282b61d3c6416b. After registration, an email confirmation with a personalized PIN will be provided along with further access details. Please plan to register 15 minutes prior to the presentation to receive confirmation and further instruction in a timely manner.

Interested parties can also access the conference call live through the Events and Presentations section of the Investor Relations page of Agilysys.com. Approximately two hours after the call has concluded, an archived version of the webcast will be available for replay at the same location.

Forward-Looking Language

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “outlook,” “forecast,” “preliminary,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “would,” “could,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, our revenue, subscription revenue and Adjusted EBITDA guidance for the 2027 fiscal year.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated herein and in other filings and statements include, among others, the impact macroeconomic factors may have on the overall business environment, our ability to achieve our fiscal 2027 guidance, maintaining sales momentum, the company's ability to convert the backlog into revenue, and the Risk Factors described in the Company’s filings with the Securities and Exchange Commission, including the Company’s reports on Form 10-K and Form 10-Q. Additionally, references to "record" financial and business levels in this document refer only to the time period after Agilysys made the transformation to an entirely hospitality focused software solutions company in FY2014.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement that may be made from time to time, whether written or oral, whether as a result of new information, future developments or otherwise.

Use of Non-GAAP Financial Information

To supplement the unaudited consolidated financial statements presented in accordance with U.S. GAAP in this press release, certain non-GAAP financial measures as defined by the SEC rules are used. These non-GAAP financial measures include EBITDA, Adjusted EBITDA, adjusted net income, adjusted basic earnings per share, adjusted diluted earnings per share and free cash flow. Management believes that such information can enhance investors’ understanding of the Company’s ongoing operations.

The Company has included the following non-GAAP financial measures in this press release: adjusted net income, adjusted basic earnings per share and adjusted diluted earnings per share. The Company believes these non-GAAP financial measures provide valuable insight into the Company’s overall profitability from core operations before certain non-cash and non-recurring charges. The Company defines adjusted net income as net income before amortization expense (including amortization of developed technology), share-based compensation, other (gains) and charges, net, and legal settlements, less the related income tax effect of these adjustments, as applicable, at the Company's current combined federal and state income statutory tax rate and tax events as defined in the accompanying tables and defines adjusted earnings per share as adjusted net income divided by basic and diluted weighted average shares outstanding.

See the accompanying tables below for the definitions and reconciliation of these non-GAAP measures to the most closely related GAAP measures.

About Agilysys

Agilysys delivers state-of-the-art software and services built exclusively for hospitality, helping organizations go beyond traditional property management (PMS), point-of-sale (POS), and food and beverage inventory and procurement systems. Its best-in-class solutions operate independently or as a unified ecosystem that connects data and workflows across an operation, property or enterprise. Powered by intelligent guest profiles, data-driven capabilities, and embedded artificial intelligence (AI), Agilysys is architected on a unified data model with a single set of APIs that create shared operational memory across all systems, enabling guest-specific insights to be acted on in real time at any touchpoint. Agilysys delivers advantage through pace and integration, transforming hospitality technology from a system of record into a system of action that accelerates innovation and the rapid delivery of new capabilities. Agilysys serves a 100% hospitality customer base, including hotels and resorts, casinos, cruise lines, corporate and campus dining, healthcare, senior living, and entertainment venues worldwide. Agilysys operates across the Americas, Europe, the Middle East, Africa, Asia-Pacific, and India with headquarters located in Alpharetta, GA. For more information visit Agilysys.com.

- Financial tables follow -

AGILYSYS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three Months Ended

September 30,

Six Months Ended

September 30,

(In thousands, except per share data)

2026

2025

2026

2025

Net revenue:

Subscription and maintenance

62,160

50,955

119,902

99,579

Professional services

19,210

18,249

38,803

36,347

Products

11,990

10,095

22,333

20,050

Total net revenue

93,360

79,299

181,038

155,976

Cost of goods sold:

Subscription and maintenance

12,614

10,850

25,340

20,833

Professional services

13,267

13,445

25,928

26,645

Products

7,172

6,037

13,805

12,236

Total cost of goods sold

33,053

30,332

65,073

59,714

Gross profit

60,307

48,967

115,965

96,262

Gross profit margin

64.6

61.7

64.1

61.7

Operating expenses:

Product development

19,846

17,825

40,091

35,280

Sales and marketing

11,479

9,781

23,675

21,574

General and administrative

11,294

10,164

22,404

20,920

Depreciation of fixed assets

849

964

1,675

1,908

Amortization of internal-use software and intangibles

1,421

1,432

2,848

2,890

Other (gains) charges, net

170

(5,456

)

287

(5,203

)

Legal settlements, net

—

110

—

225

Total operating expense

45,059

34,820

90,980

77,594

Operating income

15,248

14,147

24,985

18,668

Other income (expense):

Interest income

1,066

346

2,056

793

Interest expense

(73

)

(56

)

(142

)

(273

)

Other income (expense), net

501

1,274

654

1,372

Income before taxes

16,742

15,711

27,553

20,560

Income tax provision

3,565

4,001

5,384

3,960

Net income

13,177

11,710

22,169

16,600

Weighted average shares outstanding - basic

28,142

27,882

28,122

27,838

Net income per share - basic:

0.47

0.42

0.79

0.60

Weighted average shares outstanding - diluted

28,577

28,397

28,500

28,348

Net income per share - diluted:

0.46

0.41

0.78

0.59

AGILYSYS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

September 30,

2026 (Unaudited)

March 31,

2026

ASSETS

Current assets:

Cash and cash equivalents

137,558

116,894

Accounts receivable, net of allowance for expected credit losses of $859 and $1,105, respectively

41,108

43,069

Contract assets

5,969

4,438

Inventories

10,445

7,529

Prepaid expenses and other current assets

12,417

12,201

Total current assets

207,497

184,131

Property and equipment, net

13,048

13,950

Operating lease right-of-use assets

12,381

13,823

Goodwill

132,372

133,908

Intangible assets, net

63,379

66,359

Deferred income taxes, non-current

54,787

58,069

Other non-current assets

12,014

11,288

Total assets

495,478

481,528

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

15,331

12,445

Contract liabilities

69,639

83,009

Accrued liabilities

18,333

24,333

Operating lease liabilities, current

5,099

5,323

Total current liabilities

108,402

125,110

Deferred income taxes, non-current

10,189

10,144

Operating lease liabilities, non-current

12,120

13,721

Other non-current liabilities

7,034

5,762

Commitments and contingencies

Shareholders' equity:

Common shares, without par value, at $0.30 stated value; 80,000,000 shares authorized; 33,342,288 shares issued; and 28,215,472 and 28,166,478 shares outstanding at September 30, 2026 and March 31, 2026, respectively

10,003

Treasury shares, 5,126,816 and 5,175,810 at September 30, 2026 and March 31, 2026, respectively

(1,539

)

(1,554

)

Capital in excess of stated value

143,883

131,632

Retained earnings

221,940

199,771

Accumulated other comprehensive loss

(16,554

)

(13,061

)

Total shareholders' equity

357,733

326,791

Total liabilities and shareholders' equity

495,478

481,528

AGILYSYS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

Six Months Ended

September 30,

(In thousands)

2026

2025

Operating activities

Net income

22,169

16,600

Adjustments to reconcile net income to net cash provided by operating activities:

Loss on asset disposals

—

Depreciation of fixed assets

1,675

1,908

Amortization of internal-use software and intangibles

2,848

2,890

Amortization of developed technology acquired

330

333

Deferred income taxes

3,222

3,188

Share-based compensation

12,281

10,029

Changes in operating assets and liabilities

(19,519

)

(24,083

)

Net cash provided by operating activities

23,006

10,867

Investing activities

Cash paid for business combination, net of cash acquired

(884

)

—

Capital expenditures

(876

)

(850

)

Net cash used in investing activities

(1,760

)

(850

)

Financing activities

Debt repayments

—

(24,000

)

Proceeds from Employee Stock Purchase Plan purchases

716

777

Repurchase of common shares to satisfy employee tax withholding

(1,197

)

(742

)

Net cash used in financing activities

(481

)

(23,965

)

Effect of exchange rate changes on cash

(101

)

243

Net increase (decrease) in cash and cash equivalents

20,664

(13,705

)

Cash and cash equivalents at beginning of period

116,894

73,041

Cash and cash equivalents at end of period

137,558

59,336

AGILYSYS, INC.

RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA

(UNAUDITED)

Three Months Ended

Six Months Ended

September 30,

(In thousands)

2026

2025

2026

2025

Net income

13,177

11,710

22,169

16,600

Income tax provision

3,565

4,001

5,384

3,960

Income before taxes

16,742

15,711

27,553

20,560

Depreciation of fixed assets

849

964

1,675

1,908

Amortization of internal-use software and intangibles

1,421

1,432

2,848

2,890

Amortization of developed technology acquired

164

167

330

333

Interest expense (income), net

(993

)

(290

)

(1,914

)

(520

)

EBITDA (a)

18,183

17,984

30,492

25,171

Share-based compensation

6,293

5,000

12,281

10,029

Other (gains) charges, net

170

(5,456

)

287

(5,203

)

Other non-operating (income) expense, net

(501

)

(1,274

)

(654

)

(1,372

)

Legal settlements, net

—

110

—

225

Adjusted EBITDA (b)

24,145

16,364

42,406

28,850

(a) EBITDA, a non-GAAP financial measure, is defined as net income before income taxes, interest income (net of interest expense), depreciation and amortization (including amortization of developed technology)

(b) Adjusted EBITDA, a non-GAAP financial measure, is defined as net income before income taxes, interest income (net of interest expense), depreciation and amortization (including amortization of developed technology), and excluding charges relating to i) share-based compensation, ii) other (gains) and charges, net, iii) other non-operating expense (income), and iv) legal settlements

AGILYSYS, INC.

RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME FOR ADJUSTED EARNINGS PER SHARE

(UNAUDITED)

Three Months Ended

Six Months Ended

September 30,

(In thousands, except per share data)

2026

2025

2026

2025

Net income

13,177

11,710

22,169

16,600

Amortization of developed technology acquired

164

167

330

333

Amortization of internal-use software and intangibles

1,421

1,432

2,848

2,890

Share-based compensation

6,293

5,000

12,281

10,029

Other (gains) charges, net

170

(5,456

)

287

(5,203

)

Legal settlements, net

—

110

—

225

Tax events (a)

(213

)

(1,077

)

(950

)

Income tax adjustments

(1,901

)

(1,589

)

(3,730

)

(3,192

)

Adjusted net income (b)

19,111

11,449

33,108

20,732

Basic weighted average shares outstanding

28,142

27,882

28,122

27,838

Diluted weighted average shares outstanding

28,577

28,397

28,500

28,348

Adjusted basic earnings per share (c)

0.68

0.41

1.18

0.74

Adjusted diluted earnings per share (c)

0.67

0.40

1.16

0.73

(a) Tax events include excess tax benefits or expense related to share-based compensation, release of valuation allowances against deferred income taxes, and changes in uncertain tax positions

(b) Adjusted net income, a non-GAAP financial measure, is defined as net income before amortization expense (including amortization of developed technology), share-based compensation, other (gains) and charges, net, and legal settlements, less the related income tax effect of these adjustments, as applicable, at the Company’s current combined federal and state income statutory tax rate and, as defined under (a) above, tax events

(c) Adjusted earnings per share, a non-GAAP financial measure, is defined as adjusted net income divided by basic and diluted weighted average shares outstanding

AGILYSYS, INC.

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW

(UNAUDITED)

Three Months Ended

Six Months Ended

September 30,

(In thousands)

2026

2025

2026

2025

Net cash provided by operating activities

15,173

15,213

23,006

10,867

Capital expenditures

(356

)

(217

)

(876

)

(850

)

Free cash flow (a)

14,817

14,996

22,130

10,017

(a) Free cash flow, a non-GAAP financial measure, is defined as net cash provided by operating activities, less capital expenditures