Loading...
01/10 16:48
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings report shows strong financial performance with significant revenue growth and improved margins, despite minor declines in product revenue and gross profit margin. The Q&A reveals positive sentiment towards the company's strategic moves, such as the Book4Time acquisition and POS platform improvements. However, cautious guidance and uncertainties around the Marriott project and customer transitions slightly temper the outlook. Given the company's market cap, these factors suggest a moderate positive stock price movement, likely in the 2% to 8% range over the next two weeks.
Q4 2025 Revenue $74.3 million, 19.4% increase year-over-year from $62.2 million in Q4 2024.
Q4 2025 Subscription Revenue $29.8 million, 42.7% increase year-over-year, highest level of year-over-year growth.
Q4 2025 Services Revenue $17.8 million, record revenue, contributing to overall revenue growth.
Full Fiscal Year 2025 Revenue $275.6 million, 16% increase year-over-year despite a 16% decline in one-time product revenue.
Full Fiscal Year 2025 Recurring Revenue $170.1 million, 23.2% increase year-over-year.
Full Fiscal Year 2025 Subscription Revenue 39.5% increase year-over-year.
Full Fiscal Year 2025 Adjusted EBITDA $53.8 million, compared to $37.1 million in the previous year.
Q4 2025 Gross Profit Margin 60.7%, slightly down from 61.5% in Q4 2024 due to product mix changes.
Q4 2025 Operating Income $5.3 million, compared to $3.5 million in Q4 2024.
Q4 2025 Net Income $3.9 million, compared to $3 million in Q4 2024.
Q4 2025 Adjusted Net Income $15.2 million, compared to $9 million in Q4 2024.
Q4 2025 Free Cash Flow $26.5 million, compared to $29.3 million in the prior year quarter.
Full Fiscal Year 2025 Free Cash Flow $52.3 million, compared to $40.1 million in the prior year.
Full Fiscal Year 2025 Gross Margin 62.4%, up from 60.7% in the prior year.
Q4 2025 Total Recurring Revenue 62.2% of total net revenue, up from 58.8% in Q4 2024.
Q4 2025 Professional Services Revenue Increased by 27.7% year-over-year.
Q4 2025 Product Backlog Improved but still at about 60% of previous peak levels.
Full Fiscal Year 2025 Professional Services Revenue Increased 21.7% over the prior year quarter.
Full Fiscal Year 2025 Operating Expenses 41% of revenue, down from 43.9% in the prior year quarter.
Subscription SaaS Software and Services Sales: Fiscal 2025 was a record sales year for subscription SaaS software and services, with significant growth.
Point-of-Sale (POS) Sales: Q4 was the best sales quarter for POS, 27% higher than Q3 and 16% higher than the previous highest Q2 quarter.
Property Management System (PMS) Sales: PMS and PMS related add-on modules sales were 58% higher than the previous best year.
New Product Sales to Current Properties: Full fiscal year 2025 new product sales to current properties running at least one other Agilysys product was more than 50% higher than the previous best year.
International Sales Growth: International sales are beginning to show positive signs of consistent growth.
New Customer Acquisition: Added 16 new customers in Q4, all subscription-based, averaging six products each.
New Properties Added: Added 50 new properties during the quarter that did not have any of our products before.
Record Revenue: Q4 revenue was a record $74.3 million, 19.4% higher than the prior year.
Recurring Revenue Growth: Full fiscal year 2025 recurring revenue was $170.1 million, 23.2% higher than the previous year.
Professional Services Revenue: Q4 services revenue was a record $17.8 million, with a significant increase in professional services.
Business Transformation: Agilysys has undergone a significant transformation to become a hospitality-focused software solutions company.
Investment in Growth: The company plans to continue investing in various business areas to fuel future revenue growth.
Market Positioning: Agilysys is positioning itself as a leading hospitality technology provider with modern and connected solutions.
Macroeconomic Factors: The company acknowledges that macroeconomic factors may impact the overall business environment, which could affect their ability to achieve financial guidance and maintain sales momentum.
Sales Momentum: There is a risk associated with maintaining sales momentum, particularly as the company transitions to a more subscription-based revenue model.
Backlog Conversion: The company's ability to convert backlog into revenue is highlighted as a risk, especially given the ongoing transformation of their business model.
Regulatory Issues: The company mentions potential regulatory issues but does not elaborate on specific risks associated with compliance.
Supply Chain Challenges: While the company has modernized its POS platform to manage supply chain flexibility, there are still inherent risks associated with supply chain management across multiple vendor partners.
Economic Factors: The company expresses caution regarding macroeconomic headlines that may affect their business in the second half of fiscal 2026.
Transformation Challenges: The ongoing transformation of the business into a cloud and subscription-based entity presents operational challenges, particularly in managing customer transitions.
Revenue Projections: The company has assumed no material subscription revenue contribution from the Marriott PMS project in their projections for fiscal 2026, indicating a risk in revenue expectations.
Sales Growth: Fiscal 2025 was a record global sales year, with significant growth in subscription SaaS software and services, and a 58% increase in PMS and PMS-related add-on modules.
Product Innovation: Agilysys is focusing on modernizing its POS platform and enhancing its software solutions, including AI-based tools and intelligent guest profiles.
Market Expansion: The company is expanding its sales teams, particularly in the hotels and resorts vertical, and is seeing positive signs of growth in international sales.
Customer Acquisition: In Q4, Agilysys added 16 new customers, all subscription-based, and achieved record sales levels in various product categories.
Investment in Growth: Agilysys plans to continue investing in information security, product innovation, and customer support to fuel future revenue growth.
Revenue Guidance: For fiscal 2026, Agilysys expects revenue to be in the range of $308 million to $312 million, driven by a 25% growth in subscription revenue.
Adjusted EBITDA: The company anticipates adjusted EBITDA to be 20% of revenue for fiscal 2026.
Product Revenue Growth: One-time product revenue is expected to grow by 5% to 10% in fiscal 2026.
Professional Services Growth: Professional services revenue is also projected to grow by 5% to 10% in fiscal 2026.
Recurring Revenue Growth: Recurring revenue is expected to grow around 15% in fiscal 2026.
Share Repurchase Program: None
The earnings call summary presents a positive outlook with strong financial performance, particularly in subscription revenue and free cash flow. The Q&A section highlights strong sales momentum, margin improvements, and international growth, with no major negative concerns raised. The guidance increase and positive sentiment from analysts further support a positive stock price movement. Given the company's market cap of $2.8 billion, a positive reaction of 2% to 8% is expected over the next two weeks.
The earnings call highlights strong subscription revenue growth, a positive outlook for EBITDA, and successful sales across multiple verticals, despite a temporary free cash flow loss. The Q&A reveals ongoing improvements in sales capacity and product integration, with AI enhancing offerings. Although management was vague on some productivity details, the overall sentiment is positive, driven by strong subscription sales and optimistic guidance. The market cap suggests a moderate reaction, resulting in a 'Positive' sentiment prediction for stock price movement.
The earnings report shows strong financial performance with significant revenue growth and improved margins, despite minor declines in product revenue and gross profit margin. The Q&A reveals positive sentiment towards the company's strategic moves, such as the Book4Time acquisition and POS platform improvements. However, cautious guidance and uncertainties around the Marriott project and customer transitions slightly temper the outlook. Given the company's market cap, these factors suggest a moderate positive stock price movement, likely in the 2% to 8% range over the next two weeks.
The company's financial performance is strong, with significant revenue growth, particularly in subscription services, and improved profitability metrics. Despite some uncertainties with the Marriott PMS project, the overall sentiment remains positive due to strong organic growth, successful acquisitions, and international expansion potential. The lack of a shareholder return plan is a minor negative, but the market cap suggests a moderate reaction to positive news. Given these factors, a positive stock price movement of 2% to 8% is expected over the next two weeks.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
