Agilysys, Inc. Reports Record Sales and Optimistic Outlook

Agilysys, Inc. ((AGYS)) has held its Q4 earnings call. Read on for the main highlights of the call.

Agilysys, Inc. recently held its earnings call, revealing a generally positive sentiment with significant growth and expansion across various segments. The company celebrated record sales and revenue in fiscal 2025, overcoming previous challenges with its POS platform and showcasing robust subscription revenue growth. However, there are ongoing challenges such as a decline in product revenue and reliance on large international market wins. Despite these hurdles, the outlook for fiscal 2026 remains optimistic, with expectations of strong growth in subscription revenue.

Record Sales Year

Fiscal 2025 marked a record global sales year for Agilysys, with notable achievements across international regions, gaming casinos, hotels, resorts, and North America. The company’s subscription SaaS software and services experienced significant growth, with sales 58% higher than the previous best year.

Strong Fourth Quarter Performance

The fourth quarter of fiscal 2025 was the best sales quarter ever for Agilysys, with POS sales increasing by 27% from Q3 and 16% from Q2. This quarter also marked the best sales performance for the managed food services (FSM) vertical.

Record Revenue and Subscription Growth

Agilysys reported record revenue of $74.3 million in the fourth quarter of fiscal 2025, a 19.4% increase from the previous year. Subscription revenue grew by 42.7% in Q4, contributing to the company’s 13th consecutive record revenue quarter.

International Sales Growth

International sales are beginning to show consistent growth, adding to Agilysys’ overall sales momentum. This growth is a positive sign for the company’s expansion efforts.

Successful User Conference

The Inspire user conference was a success, featuring eight customer-led sessions that highlighted the benefits of Agilysys’ accelerating product innovation.

Positive Future Outlook

Agilysys expects fiscal 2026 revenue to range between $308 million and $312 million, driven by a projected 25% year-over-year growth in subscription revenue. This optimistic outlook is supported by the company’s evolving sales momentum and strong pipeline.

Challenges with POS Sales Transition

The transition from old to new POS platforms had previously caused complications, but Agilysys has now turned the corner with its modernized and unified POS platform.

Product Revenue Decline

There was a 16% decline in one-time product revenue in fiscal 2025, which was anticipated due to the company’s shift towards a cloud and subscription-based model.

Dependence on Large Wins in International Markets

While international sales are growing, they remain too dependent on large ‘home run’ wins, indicating potential instability in this growth segment.

Forward-Looking Guidance

Agilysys provided guidance for fiscal year 2026, forecasting revenue between $308 million and $312 million, driven by a 25% anticipated growth in subscription revenue. The company expects adjusted EBITDA to be 20% of revenue, emphasizing ongoing investments in product innovation and market expansion.

In conclusion, Agilysys, Inc. demonstrated a strong performance in fiscal 2025, with record sales and revenue growth across multiple segments. Despite challenges such as product revenue decline and reliance on large international wins, the company remains optimistic about fiscal 2026, driven by anticipated subscription revenue growth and continued market expansion.