Agilysys Posts Adjusted EPS of $0.67 and Record Second-Quarter Revenue

Key Facts

Agilysys reported results on October 26 for the second quarter of fiscal 2027, ended September 30, with record quarterly revenue of $93.4 million. Adjusted earnings per share were $0.67, topping analysts’ estimate of $0.55, according to Investing.com coverage attributed to Reuters. Revenue also exceeded the analyst consensus of $90.92 million, the same report said. The company confirmed revenue rose 17.7% from the year-earlier period. The result marked the company’s nineteenth consecutive quarter of record revenue, according to management in its earnings release.

Recurring revenue, which includes subscriptions and maintenance, was $62.2 million, or 66.6% of total revenue, compared with $51.0 million and 64.3% a year earlier. Subscription revenue rose 32.6% year over year, accounting for 71.2% of recurring revenue, versus 65.5% in the year-earlier period. Management said subscription growth was the main driver of the record quarter. It also said one-time product revenue came in higher than expected. The company linked this to continued hospitality-sector investment in modern point-of-sale solutions and cloud-native technologies.

Gross margin improved to 64.6% from 61.7% in the year-earlier quarter of the prior fiscal year. Net income was $13.2 million, or $0.46 per diluted share, compared with $11.7 million and $0.41 per share a year earlier. Adjusted EBITDA rose to $24.1 million from $16.4 million. Free cash flow, meanwhile, was $14.8 million, versus $15.0 million in the comparable period. The figures show improved operating profitability alongside revenue growth, while free cash flow edged lower year over year.

Agilysys raised its fiscal 2027 revenue outlook to a range of $374 million to $378 million. It also forecast subscription revenue growth of at least 34% for the year. The company raised its adjusted EBITDA margin estimate to 25% of revenue, from a previous forecast of 24%. The updated guidance follows record second-quarter results, with management attributing performance to subscription expansion and demand for one-time products. The revised outlook puts the remainder of the fiscal year in focus for investors tracking the company’s results.

Despite topping earnings and revenue estimates and raising its outlook, the company’s shares fell 5% in after-hours trading on Monday, October 26, according to Investing.com coverage attributed to Reuters. The stock closed at $120.69 on October 23, according to EL7 data, three days before the results were announced. That closing price was from a session before the announcement and does not represent the share price after the results were released. In its fiscal 2027 first-quarter results, the company had reported record revenue of $87.7 million and called it the eighteenth consecutive quarter of record revenue. The chief financial officer said at the time that execution of the annual plan was slightly ahead of target, attributing this to sales velocity and progress in project implementation.