Agilysys, Inc. (NASDAQ: AGYS), a leading global provider of hospitality software solutions and services, today reported results for its fiscal 2025 fourth quarter and full year ending March 31, 2025.

Summary of Fiscal 2025 Fourth Quarter Financial Results

Total net revenue increased 19.4% to a record $74.3 million compared to total net revenue of $62.2 million in the comparable prior-year period.
Recurring revenue (comprised of subscription and maintenance charges) was a record $46.2 million, or 62.2% of total net revenue, compared to $36.6 million, or 58.8% of total net revenue for the same period in fiscal 2024. Subscription revenue increased 42.7% year-over-year and was 64.4% of total recurring revenue compared to 57.0% of total recurring revenue in the fourth quarter of fiscal 2024.
Gross margin was 60.7% in the fiscal 2025 fourth quarter compared to 61.5% in the comparable prior-year period.
Net income attributable to common shareholders in the fiscal 2025 fourth quarter was $3.9 million, or $0.14 per diluted share, compared to $3.0 million, or $0.11 per diluted share, in the comparable prior-year period.
Adjusted EBITDA (non-GAAP) was $14.8 million compared to $11.0 million in the comparable prior-year period (reconciliation included in financial tables).
Adjusted diluted EPS (non-GAAP) was $0.54 per share in the fiscal 2025 fourth quarter compared to $0.32 per share in the comparable prior-year period (reconciliation included in financial tables).
Free cash flow (non-GAAP) in the fiscal 2025 fourth quarter was $26.5 million compared to free cash flow of $29.3 million in the fiscal 2024 fourth quarter (reconciliation included in financial tables). Ending cash balance was $73.0 million compared to ending cash balance of $144.9 million as of fiscal 2024 year-end.
Summary of Full Fiscal Year 2025 Financial Results

Total net revenue increased 16.1% to a record $275.6 million compared to total net revenue of $237.5 million in the comparable prior-year period.
Recurring revenue (comprised of subscription and maintenance charges) was a record $170.1 million, or 61.7% of total net revenue, compared to $138.1 million, or 58.1% of total net revenue, for fiscal year 2024. Subscription revenue increased 39.5% year-over-year and was 61.9% of total recurring revenue compared to 54.7% of total recurring revenue in fiscal year 2024.
Gross margin was 62.4% in fiscal year 2025 compared to 60.7% in the comparable prior-year period.
Net income attributable to common shareholders in fiscal year 2025 was $23.2 million, or $0.82 per diluted share, compared to $85.0 million, or $3.17 per diluted share, in the comparable prior-year period.
Adjusted EBITDA (non-GAAP) was a record $53.8 million compared to $37.1 million in the comparable prior-year period (reconciliation included in financial tables).
Adjusted diluted EPS (non-GAAP) was $1.55 per share in fiscal year 2025 compared to $1.10 per share in the comparable prior-year period (reconciliation included in financial tables).
Free cash flow (non-GAAP) in fiscal year 2025 was $52.3 million compared to free cash flow of $40.1 million in fiscal year 2024 (reconciliation included in financial tables).
Ramesh Srinivasan, President and CEO of Agilysys, commented, “We are pleased with our fourth quarter results, which featured year-over-year subscription revenue growth of 42.7% including Book4Time and services revenue growth of 21.7%, producing the 13th consecutive record quarter for overall revenue. Annual fiscal year 2025 total revenue, subscription revenue and services revenue were also all records, led by subscription growth of 39.5% and services growth of 27.7% for the full year.

“We have had considerable success with our professional services hiring efforts during the recent few months. Fiscal 2025 fourth quarter was an excellent period for services implementation execution, driving to record highs both services revenue and annual subscription revenue value of projects installed in the field.”

Srinivasan continued, “Fiscal 2025 fourth quarter was a record quarter for selling success, beating the previous best quarter by a wide margin. Customer demand for the cloud-native state-of-the-art hospitality focused software solution ecosystem we have built diligently over the past several years has continued to accelerate, driving the sum of product, recurring revenue and services backlog to the highest levels we have seen thus far.

"We expect fiscal year 2026 full year revenue to be in the $308 million to $312 million range inclusive of 25% subscription revenue growth and Adjusted EBITDA at 20% of revenue. Our annual guidance assumes no material subscription revenue contribution from the current large-scale PMS project we are working on, which is progressing well,” Srinivasan concluded.

Fiscal 2026 Outlook

The Company expects full year fiscal 2026 revenue to be $308 million to $312 million, including 25% year-over-year subscription revenue growth. Adjusted EBITDA is expected to be 20% of revenue for the full fiscal year. Subscription revenue growth expectations exclude any material revenue from the large scale PMS rollout currently in progress.

Dave Wood, Chief Financial Officer, commented, “This was a transformational year for Agilysys. We managed through operational challenges related to the end stages of the product modernization efforts, completed the acquisition of Book4Time and experienced accelerating sales demand for our modernized cloud-native software ecosystem, resulting in record sales during fiscal year 2025. We are pleased with another year of record revenue and strong year-over-year subscription revenue growth. The record sales year has driven backlog to record levels as we focus on the execution of our FY26 financial plan.”

2025 Fourth Quarter Conference Call and Webcast

Agilysys is hosting a conference call and webcast today, May 19, 2025, 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/BIdacfb34dab2443c0a692a71501be72cf. 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 2026 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 2026 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, convertible preferred stock issuance costs, and one-time charges including severance and other charges, impairments and legal settlements, less the related income tax effect of these adjustments, as applicable, 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.