Agilysys, Inc., a leading global provider of hospitality software solutions and services, reported results for its fiscal 2027 first quarter ending June 30, 2026.

Summary of Fiscal 2027 First Quarter Financial Results

• Total net revenue increased 14.3% to a record $87.7 million compared to total net revenue of $76.7 million in the comparable prior-year period.
• Recurring revenue (comprising subscription and maintenance charges) was a record $57.7 million, or 65.9% of total net revenue, compared to $48.6 million, or 63.4% of total net revenue for the same period in fiscal 2026. Subscription revenue increased 26.1% year-over-year and was 69.7% of total recurring revenue compared to 65.6% of total recurring revenue in the first quarter of fiscal 2026.
• Gross margin was 63.5% in the fiscal 2027 first quarter compared to 61.7% in the comparable prior-year period.
• Net income in the fiscal 2027 first quarter was $9.0 million, or $0.32 per diluted share, compared to $4.9 million, or $0.17 per diluted share, in the comparable prior-year period.
• Adjusted EBITDA (non-GAAP) was $18.3 million compared to $12.5 million in the comparable prior-year period (reconciliation included in financial tables).
• Adjusted diluted EPS (non-GAAP) was $0.49 per share in the fiscal 2027 first quarter compared to $0.33 per share in the comparable prior-year period (reconciliation included in financial tables).
• Free cash flow (non-GAAP) in the fiscal 2027 first quarter was $7.3 million compared to free cash flow of $(5.0) million in the fiscal 2026 first quarter (reconciliation included in financial tables). Ending cash balance was $123.7 million compared to ending cash balance of $116.9 million as of fiscal 2026 year-end.

Ramesh Srinivasan, president and CEO of Agilysys, commented, “Q1 Fiscal 2027 was another good quarter with the overall business fundamentals making excellent progress. Revenue was a record $87.7 million, the 18th consecutive record revenue quarter, driven by subscription growth of 26% and record professional services revenue of $19.6 million.

The appetite for modern technology solutions continues to be high in the hospitality industry. The combined strengths of our ecosystem of software solutions and recently added AI powered feature sets are yielding excellent sales and adoption results. Q1 Fiscal 2027 was another highly successful sales quarter, the best ever Q1 sales period, driving backlog levels to record highs.

We are pleased to see the business continuing to achieve growth and profitability results ahead of original expectations. As a result, we are raising full fiscal year total revenue expectation to be in the range of $368 million to $373 million driven by year-over-year subscription revenue growth of at least 32%, from the original guidance of $365 million to $370 million and at least 30% subscription revenue growth. Adjusted EBITDA expectation remains at 24% of revenue for the full fiscal year, providing adequate room for any potential additional strategic business investment needs” Srinivasan concluded.

Fiscal 2027

‍The Company is raising full year subscription revenue growth guidance of at least 30% year-over-year to at least 32% and full year fiscal 2027 total revenue to be $368 million to $373 million. Adjusted EBITDA expectations remain at 24% of revenue for the full fiscal year.

Dave Wood, Chief Financial Officer, commented, “We have hit the ground running in Fiscal 2027. The business plan execution for the year is slightly ahead of target due to sales velocity and project implementation progress. We are pleased to be in a position after the first financial quarter to increase our full year expectations as a result of execution successes seen thus far. The Agilysys teams continue to remain dedicated to executing at elevated levels to support our customers, resulting in continued profitable growth momentum in our business.”

2027 First Quarter Conference Call and Webcast

‍Agilysys is hosting a conference call and webcast today, July 27, 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/BIedfac83ebf394cbfa8e9e2c5958f0734. 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.