AGILYSYS ANNOUNCES RECORD REVENUE OF $93.4M IN FISCAL 2027 SECOND QUARTER Inclusive of Subscription Revenue Growth of 32.6% and Quarter Adjusted EBITDA of 25.9%
AGILYSYS INC (AGYS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 AGILYSYS ANNOUNCES RECORD REVENUE OF $93.4M IN FISCAL 2027 SECOND QUARTER Inclusive of Subscription Revenue Growth of 32.6% and Quarter Adjusted EBITDA of 25.9% Raises Full-Year Fiscal 2027 Guidance Levels: Total Revenue Range to $374M to $378M and Subscription Reven
How this was made
The 30-second read
Why it matters
The raised revenue and subscription growth guidance may attract growth-oriented investors, while the modest free cash flow dip could temper enthusiasm.
Market read
The earnings beat and raised guidance are likely to lift AGYS stock in the short term, with limited spillover to the broader market.
What to watch
Potential headwinds from macro slowdown in travel and hospitality spending.
AGILYSYS ANNOUNCES RECORD REVENUE OF $93.4M IN FISCAL 2027 SECOND QUARTER Inclusive of Subscription Revenue Growth of 32.6% and Quarter Adjusted EBITDA of 25.9% Raises Full-Year Fiscal 2027 Guidance Levels: Total Revenue Range to $374M to $378M and Subscription Revenue Growth to At Least 34%
Record quarterly revenue increased 17.7%, profitability improved across GAAP and non-GAAP measures, recurring revenue mix increased, and the company raised full-year revenue, subscription growth and Adjusted EBITDA expectations.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total net revenue, three months ended September 30, 2026GAAP | $93.36M | – | 17.7% |
| Total net revenue, six months ended September 30, 2026GAAP | $181.0M | – | – |
| Recurring revenue, fiscal 2027 second quarterother | $62.2M | – | – |
| Recurring revenue as a percentage of total net revenue, fiscal 2027 second quarterother | 66.6% | – | – |
| Subscription revenue growth, fiscal 2027 second quarterother | 32.6% | – | 32.6% |
| Subscription revenue as a percentage of total recurring revenue, fiscal 2027 second quarterother | 71.2% | – | – |
| Gross profit, three months ended September 30, 2026GAAP | $60.31M | – | – |
| Gross profit margin, three months ended September 30, 2026GAAP | 64.6 % | – | – |
| Gross profit, six months ended September 30, 2026GAAP | $116.0M | – | – |
| Gross profit margin, six months ended September 30, 2026GAAP | 64.1 % | – | – |
| Total cost of goods sold, three months ended September 30, 2026GAAP | $33.05M | – | – |
| Total cost of goods sold, six months ended September 30, 2026GAAP | $65.07M | – | – |
| Total operating expense, three months ended September 30, 2026GAAP | $45.06M | – | – |
| Total operating expense, six months ended September 30, 2026GAAP | $90.98M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $15.25M | – | – |
| Operating income, six months ended September 30, 2026GAAP | $24.98M | – | – |
| Income before taxes, three months ended September 30, 2026GAAP | $16.74M | – | – |
| Income before taxes, six months ended September 30, 2026GAAP | $27.55M | – | – |
| Income tax provision, three months ended September 30, 2026GAAP | $3.56M | – | – |
| Income tax provision, six months ended September 30, 2026GAAP | $5.38M | – | – |
| Net income, three months ended September 30, 2026GAAP | $13.18M | – | – |
| Net income, six months ended September 30, 2026GAAP | $22.17M | – | – |
| Net income per share - basic, three months ended September 30, 2026GAAP | $ 0.47 | – | – |
| Net income per share - diluted, three months ended September 30, 2026GAAP | $ 0.46 | – | – |
| Net income per share - basic, six months ended September 30, 2026GAAP | $ 0.79 | – | – |
| Net income per share - diluted, six months ended September 30, 2026GAAP | $ 0.78 | – | – |
| EBITDA, three months ended September 30, 2026non-GAAP | $18.18M | – | – |
| EBITDA, six months ended September 30, 2026non-GAAP | $30.49M | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $24.14M | – | – |
| Adjusted EBITDA, six months ended September 30, 2026non-GAAP | $42.41M | – | – |
| Adjusted net income, three months ended September 30, 2026non-GAAP | $19.11M | – | – |
| Adjusted net income, six months ended September 30, 2026non-GAAP | $33.11M | – | – |
| Adjusted basic earnings per share, three months ended September 30, 2026non-GAAP | $ 0.68 | – | – |
| Adjusted diluted earnings per share, three months ended September 30, 2026non-GAAP | $ 0.67 | – | – |
| Adjusted basic earnings per share, six months ended September 30, 2026non-GAAP | $ 1.18 | – | – |
| Adjusted diluted earnings per share, six months ended September 30, 2026non-GAAP | $ 1.16 | – | – |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $15.17M | – | – |
| Net cash provided by operating activities, six months ended September 30, 2026GAAP | $23.01M | – | – |
| Capital expenditures, three months ended September 30, 2026other | $356K | – | – |
| Capital expenditures, six months ended September 30, 2026other | $876K | – | – |
| Free cash flow, three months ended September 30, 2026non-GAAP | $14.82M | – | – |
| Free cash flow, six months ended September 30, 2026non-GAAP | $22.13M | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $137.6M | – | – |
| Total assets, September 30, 2026GAAP | $495.5M | – | – |
| Total current liabilities, September 30, 2026GAAP | $108.4M | – | – |
| Total shareholders' equity, September 30, 2026GAAP | $357.7M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Subscription and maintenance, three months ended September 30, 2026Subscription revenue increased 32.6% year-over-year. | $62.16M | – | – |
| Professional services, three months ended September 30, 2026The company cited project implementation velocity. | $19.21M | – | – |
| Products, three months ended September 30, 2026Q2 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. | $11.99M | – | – |
| Subscription and maintenance, six months ended September 30, 2026No separate six-month driver was provided. | $119.9M | – | – |
| Professional services, six months ended September 30, 2026No separate six-month driver was provided. | $38.80M | – | – |
| Products, six months ended September 30, 2026No separate six-month driver was provided. | $22.33M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full fiscal year 2027 outlook
- Revenue$374 million to $378 million
- NoteSubscription revenue growth of at least 34% year over year
- NoteAdjusted EBITDA of 25% of revenue
Capital returns
- Repurchase of common shares to satisfy employee tax withholding: $ 1,197 for the six months ended September 30, 2026, compared to $ 742 for the six months ended September 30, 2025.
- Proceeds from Employee Stock Purchase Plan purchases: $ 716 for the six months ended September 30, 2026, compared to $ 777 for the six months ended September 30, 2025.
What drove it
- Record revenue was driven by subscription growth of 32.6%.
- Management cited a sustained high level of sales demand and project implementation velocity.
- The company reported its best ever Q2 July to September sales period and said total backlog remained at record levels despite strong implementation and delivery results.
- Management said hospitality customers are investing in modern point of sale technology and implementing a cloud-native ecosystem of software solutions.
Concerns
- Management said fiscal 2027 second-quarter one-time product revenue was higher than expected.
- The company identifies its ability to achieve fiscal 2027 guidance, maintain sales momentum and convert backlog into revenue as factors that could cause actual results to differ materially from forward-looking statements.
- Free cash flow was $ 14,817 in the fiscal 2027 second quarter compared to $ 14,996 in the fiscal 2026 second quarter.
What to watch
- Execution against full fiscal year 2027 total revenue guidance of $374 million to $378 million.
- Delivery of subscription revenue growth of at least 34% year over year for full fiscal year 2027.
- Achievement of Adjusted EBITDA of 25% of revenue for full fiscal year 2027.
- Conversion of record backlog into revenue and continuation of project implementation velocity.
- The contribution from product revenue following higher-than-expected fiscal 2027 second-quarter one-time product revenue.
Balance sheet and cash flow
- Cash and cash equivalents were $ 137,558 at September 30, 2026, compared to $ 116,894 at March 31, 2026.
- Net cash provided by operating activities was $ 23,006 for the six months ended September 30, 2026, compared to $ 10,867 for the six months ended September 30, 2025.
- Net cash used in investing activities was $ 1,760 for the six months ended September 30, 2026, compared to $ 850 for the six months ended September 30, 2025.
- Cash paid for business combination, net of cash acquired was $ 884 for the six months ended September 30, 2026.
- Debt repayments were — for the six months ended September 30, 2026, compared to $ 24,000 for the six months ended September 30, 2025.
- Net increase (decrease) in cash and cash equivalents was $ 20,664 for the six months ended September 30, 2026, compared to $ (13,705) for the six months ended September 30, 2025.
Analysis
Agilysys reported record fiscal 2027 second-quarter total net revenue of $ 93,360, compared with $ 79,299 in the comparable prior-year period, with the release stating growth of 17.7%. Recurring revenue was $62.2 million, or 66.6% of total net revenue, versus $51.0 million, or 64.3% of total net revenue, in the same period of fiscal 2026. Subscription revenue increased 32.6% year over year and represented 71.2% of recurring revenue, compared with 65.5% in the prior-year second quarter. Management attributed the quarter to subscription growth, sustained sales demand and project implementation velocity.
Revenue growth occurred across the reported revenue categories. Subscription and maintenance revenue was $ 62,160 versus $ 50,955, professional services revenue was $ 19,210 versus $ 18,249, and products revenue was $ 11,990 versus $ 10,095. Management said one-time product revenue was higher than expected and linked this demand to hospitality investment in modern point of sale technology. It also said the company posted its best ever Q2 July to September sales period and retained record total backlog despite strong implementation and delivery results.
Profitability strengthened in the quarter. Gross profit margin was 64.6 %, compared with 61.7 %, while operating income was $ 15,248 compared with $ 14,147. Net income was $ 13,177, or $ 0.46 per diluted share, compared with $ 11,710, or $ 0.41 per diluted share. Adjusted EBITDA was $ 24,145 compared with $ 16,364, and adjusted diluted earnings per share was $ 0.67 compared with $ 0.40. The reconciliation shows $ 6,293 of share-based compensation in the quarter and $ 170 of other (gains) charges, net, among the adjustments to Adjusted EBITDA.
Cash generation remained positive. Quarterly net cash provided by operating activities was $ 15,173 compared with $ 15,213, and free cash flow was $ 14,817 compared with $ 14,996. For the six months ended September 30, 2026, operating cash flow was $ 23,006 compared with $ 10,867 and free cash flow was $ 22,130 compared with $ 10,017. Cash and cash equivalents were $ 137,558 at September 30, 2026, compared with $ 116,894 at March 31, 2026. Financing activity included $ 1,197 of common-share repurchases to satisfy employee tax withholding.
The company raised full fiscal year 2027 total revenue guidance to $374 million to $378 million, subscription revenue growth guidance to at least 34% year over year, and Adjusted EBITDA expectations to 25% of revenue. The filing characterizes these as increases from prior expectations, including previous expectations of at least 32% subscription revenue growth and Adjusted EBITDA of 24% of revenue. The release did not provide the prior total revenue guidance range in a standalone prior outlook document, so the reported quarter cannot be formally compared with prior guidance under the supplied-document standard.
Management, verbatim
Revenue was a record $93.4 million during Q2 Fiscal 2027, the 19th consecutive record revenue quarter, driven by subscription growth of 32.6%.
Ramesh Srinivasan, President and CEO of Agilysys
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.
Ramesh Srinivasan, President and CEO of Agilysys
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.
Dave Wood, Chief Financial Officer
Not in the filing
stated, not guessed- Previous outlook section or prior earnings release needed to populate vs_prior_guidance.
- Prior-quarter operating results and sequential comparisons for the fiscal 2027 second quarter.
- Debt balance at September 30, 2026.
- Full-year fiscal 2027 gross margin, operating expense and tax-rate guidance.
- A separately reported subscription revenue dollar amount.
- A separately reported quarterly dividend or share-repurchase authorization.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Agilysys is a provider of hospitality software solutions, reporting its fiscal 2027 Q2 results via an SEC 8‑K filing.
Ticker impact
AGYS reported record Q2 revenue of $93.4M and raised full-year revenue guidance to $374M-$378M.
likely upside as the market prices in the raised guidance.
The company beat prior quarter results and increased its revenue outlook, which typically drives buying interest.
Market effects
Positive signal for hospitality software providers and cloud SaaS vendors.
May boost investor sentiment toward US tech and software stocks.
Limited to niche software sector, no broad macro effect.
Counterpoint
If the raised guidance is already priced in, the stock could face short-covering pullback.
Key entities
- companyAgilysys Inc.
Hospitality software provider
