Agilysys posts record Q1 revenue driven by subscription growth

Agilysys

21/07/2025 21:20

Overview

Agilysys fiscal Q1 revenue rises 20.7%, beating analyst expectations, per LSEG data

Adjusted EPS for fiscal Q1 misses analyst expectations, per LSEG data

Company raises full-year subscription revenue growth guidance to 27%

Outlook

Agilysys raises full-year subscription revenue growth guidance to 27%

Agilysys maintains full-year revenue guidance at $308 mln to $312 mln

Adjusted EBITDA expected to remain at 20% of revenue for fiscal year

Result Drivers

SUBSCRIPTION REVENUE - Subscription revenue grew 44% year-over-year, driving record total net revenue

SALES MOMENTUM - Strong sales momentum contributed to increased recurring and services revenue backlog

CLOUD SOLUTIONS DEMAND - Robust demand for cloud-native hospitality software solutions fueled revenue growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$76.70 mln
$74.30 mln (6 Analysts)
Q1 Adjusted EPS
Miss
$0.33
$0.36 (6 Analysts)
Q1 Net Income
$4.90 mln
Q1 Adjusted EBITDA
Miss
$12.50 mln
$14 mln (5 Analysts)
Q1 Gross Margin
61.7%
Q1 Adjusted Free Cash Flow
-$5 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Agilysys Inc is $125.00, about 7.8% above its July 18 closing price of $115.21

The stock recently traded at 65 times the next 12-month earnings vs. a P/E of 44 three months ago

Press Release: ID:nBw24cc6ha

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)