ALPHARETTA: Agilysys, Inc. (NASDAQ: AGYS) reported record first-quarter revenue for fiscal 2026, as strong demand for subscription-based hospitality software solutions lifted top-line results 20.7% year-over-year.
The company posted total revenue of $76.7 million for the quarter ending June 30, up from $63.5 million in the prior-year period. Recurring revenue rose 27.9% to $48.6 million and accounted for 63.4% of total revenue, driven by a 44.3% jump in subscription revenue.
Net income fell to $4.9 million, or $0.17 per diluted share, compared with $14.1 million, or $0.50 per diluted share, a year earlier. Adjusted EBITDA increased slightly to $12.5 million. Adjusted diluted earnings per share rose to $0.33 from $0.30.
CEO Ramesh Srinivasan said it was Agilysys’ 14th consecutive record-setting revenue quarter, citing a 24% increase in annual contract value and strong momentum for its cloud-native ecosystem.
“With robust selling velocity and implementation success, subscription revenue is on pace to grow 27% for the full year, above our prior forecast,” Srinivasan said. The outlook excludes anticipated contributions from a major property management system (PMS) project currently in development.
Free cash flow turned negative at $(5.0) million, compared with $0.2 million in the year-ago quarter. The company ended the quarter with $55.6 million in cash.
CFO Dave Wood said execution remained strong, particularly for point-of-sale offerings, and reaffirmed expectations for total fiscal 2026 revenue of $308 million to $312 million, and adjusted EBITDA of 20% of revenue.