How did Agilysys reach a 19th consecutive quarter of higher revenue?

Sonal Goyal

28 October 2026 05:00 PM AEDT

How did Agilysys reach a 19th consecutive quarter of higher revenue?

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Key Highlights

Fiscal second-quarter 2027 Revenue was USD 93.4 million, up 17.7 per cent, with Recurring Revenue of USD 62.2 million.
Net income was USD 13.2 million, or USD 0.46 per diluted share, and adjusted EBITDA was USD 24.1 million.
Management raised fiscal 2027 revenue guidance to USD 374 million to USD 378 million, from USD 368 million to USD 373 million.

Highest quarterly revenue and a second guidance raise

Agilysys, Inc. (NASDAQ:AGYS), the Alpharetta, Georgia provider of software for hospitality businesses, announced results for the second quarter of fiscal 2027 on 26 October 2026. The quarter ended on 30 September 2026. Chief executive Ramesh Srinivasan called it the company's 19th consecutive quarter of highest revenue to date and said the Business continues to grow ahead of previous expectations.

Total net revenue was USD 93.4 million, up 17.7 per cent from USD 79.3 million. Recurring revenue, made up of subscription and maintenance, was USD 62.2 million, or 66.6 per cent of revenue, against USD 51.0 million and 64.3 per cent a year earlier. Subscription revenue grew 32.6 per cent and represented 71.2 per cent of recurring revenue, up from 65.5 per cent.

Margins, Earnings and cash

Gross Margin improved to 64.6 per cent from 61.7 per cent. Net Income was USD 13.2 million, or USD 0.46 per diluted share, compared with USD 11.7 million, or USD 0.41. On a non-GAAP basis, adjusted EBITDA rose to USD 24.1 million, a 25.9 per cent margin, from USD 16.4 million, and adjusted Diluted Earnings per Share were USD 0.67 against USD 0.40.

Free cash flow, a non-GAAP measure, was USD 14.8 million against USD 15.0 million, so cash generation was broadly flat despite the profit gains. Cash and cash equivalents were USD 137.6 million at 30 September 2026, compared with USD 116.9 million at 31 March 2026, an increase of USD 20.7 million.

For the first six months of fiscal 2027, revenue was USD 181.0 million against USD 156.0 million. Net income was USD 22.2 million, or USD 0.78 per diluted share, against USD 16.6 million, or USD 0.59. Adjusted EBITDA was USD 42.4 million against USD 28.9 million, and operating Cash Flow was USD 23.0 million against USD 10.9 million. Free cash flow for the half was USD 22.1 million against USD 10.0 million.

Guidance steps up again

Management raised its fiscal 2027 outlook. It now expects total revenue of USD 374 million to USD 378 million, subscription revenue growth of at least 34 per cent, and adjusted EBITDA of 25 per cent of revenue. In July the company had guided to revenue of USD 368 million to USD 373 million, subscription growth of at least 32 per cent and adjusted EBITDA of 24 per cent. These figures are forecasts, not reported results.

Chief financial officer Dave Wood said the company was pleased to be in a position once again to increase its full-year expectations.

What to watch

Three themes stand out. First, the shift towards subscription revenue, which supports both margin and visibility but can slow near-term cash conversion. Second, whether free cash flow, flat in the quarter, catches up with the rise in profit. Third, whether the company can continue to raise guidance in the second half.

The first quarter of fiscal 2027, reported on 27 July 2026, provides a baseline: revenue was USD 87.7 million, up 14.3 per cent, and adjusted EBITDA was USD 18.3 million, or 20.8 per cent of revenue. Revenue growth therefore accelerated in the second quarter.

FAQs

Q: What was Agilysys' revenue in fiscal second quarter 2027?

A: Total net revenue was USD 93.4 million, up 17.7 per cent from USD 79.3 million. Recurring revenue was USD 62.2 million, or 66.6 per cent of revenue.

Q: What is the raised fiscal 2027 guidance?

A: Agilysys now expects revenue of USD 374 million to USD 378 million, subscription revenue growth of at least 34 per cent, and adjusted EBITDA of 25 per cent of revenue. In July it had guided to USD 368 million to USD 373 million.

Q: How did free cash flow compare with profit?

A: Free cash flow was USD 14.8 million against USD 15.0 million a year earlier, so cash generation was broadly flat while net income rose to USD 13.2 million from USD 11.7 million.

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