The chart below shows how AGYS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AGYS sees a +0.12% change in stock price 10 days leading up to the earnings, and a +5.44% change 10 days following the report. On the earnings day itself, the stock moves by +0.50%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Record Revenue Increase: Fiscal 2025 Q2 revenue was a record $68.3 million, a 16.5% increase from total net revenue of $58.6 million in the comparable prior year period.
Recurring Revenue Surge: Recurring revenue grew 21% year-over-year to a record $41.4 million, driven mainly by a 36.6% increase in subscription revenue, which grew to $25.1 million during fiscal 2025 Q2.
Adjusted EBITDA Increase: Adjusted EBITDA was $12.2 million, compared to $8.1 million in the year-ago quarter, reflecting strong profitability levels ahead of the original FY 2025 plan.
Acquisition Revenue Contribution: The acquisition of Book4Time added $2.2 million to total revenue, contributing positively to overall financial results.
Record Service Revenue Growth: Service revenue was a record $16.3 million, which is 39.2% higher than the comparable prior year quarter, indicating strong growth in service offerings.
Negative
Record Revenue Growth: Fiscal 2025 Q2 revenue was a record $68.3 million, a 16.5% increase from total net revenue of $58.6 million in the comparable prior year period, but product revenue decreased by 16.7% compared to Q2 last fiscal year.
Net Income Decline Factors: The reduction in net income was primarily due to tax expense in the quarter along with lower operating income associated with one-time costs for the Book4Time acquisition.
Gross Profit Margin Decline: Gross profit margin was 63.3%, compared to 59.9% in the second quarter of fiscal 2024, indicating a decline in profitability despite increased revenue.
Recurring Revenue Decline: Recurring revenue represented 60.7% of total net revenue for the fiscal second quarter, compared to 58.4% in the second quarter of fiscal 2024, showing a slight decrease in reliance on recurring revenue streams.
Cash Decrease and Liquidity Concerns: The cash decrease was related to the portion of the Book4Time acquisition paid with cash on hand, indicating potential liquidity concerns.
Agilysys, Inc. (AGYS) Q2 2025 Earnings Call Transcript
AGYS.O
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