AGYS · Agilysys, Inc.

Agilysys delivered a strong fiscal 2026 fourth quarter and full year, marked by the 17th consecutive record revenue quarter. Q4 revenue of $82.9M grew 11.7% year-over-year, driven by 24.1% subscription revenue growth and services revenue of $18.2M. Gross margin expanded to 64.4% from 60.7% due to favorable mix toward higher-margin recurring revenue, which now represents 65.5% of total net revenue. Net income surged to $12.3M ($0.43 diluted EPS) from $3.9M ($0.14 diluted EPS) in the prior-year quarter, reflecting operating leverage. Adjusted EBITDA rose to $21.5M (record), with adjusted diluted EPS of $0.63.

For the full fiscal year 2026, total net revenue increased 15.9% to a record $319.3M, with subscription revenue growing 30.2% to $205.9M. Full-year adjusted EBITDA reached a record $67.7M, while free cash flow was $68.1M. The company ended the year with $116.9M in cash and no long-term debt, a significant improvement from $73.0M a year earlier.

Management attributed the strong performance to continued subscription momentum, world-class customer retention, and AI-related investments that are improving operating leverage and product differentiation. Notably, Agilysys announced the development of two new AI-native software modules – revenue intelligence and CRS – to fill gaps in its hospitality ecosystem.

Looking ahead, the company guided fiscal 2027 revenue in the range of $365M to $370M, implying approximately 14-16% growth, with subscription revenue growth expected to be at least 30% for the third consecutive year. Adjusted EBITDA margin is forecast to improve to 24% from 21.2% in fiscal 2026, reflecting ongoing operational efficiencies and scale benefits.