Agilysys (AGYS) Reports Record Revenue, EPS Miss

by MarketNewsData

Agilysys (AGYS) reported fiscal Q1 2026 results after the bell, delivering record revenue but missing EPS estimates, sending the stock down 11.06% after hours to $104.01.

📊 Quarterly Performance Snapshot
EPS (Non-GAAP): $0.33 ❌ Missed est. of $0.39 (-0.06)

Revenue: $76.7M ✅ Beat est. $74.4M

YoY Revenue Growth: +20.7%

📈 Key Financials

  • Gross Margin: 61.7% (↓ from 62.8% YoY)
  • Adj. EBITDA: $12.5M (↑ from $12.1M YoY)
  • Net Income: $4.9M or $0.17/share (↓ from $14.1M or $0.50/share, driven by prior-year tax benefit)
  • Free Cash Flow: ($5.0M) vs. $0.2M YoY
  • Cash Balance: $55.6M (↓ from $73.0M)

🔄 Recurring & Subscription Revenue

  • Recurring Revenue: $48.6M, 63.4% of total (↑ from 59.9%)
  • Subscription Revenue Growth: +44% YoY
  • Professional Services Revenue: +16% YoY

🧭 Guidance (FY26)

  • Revenue: $308–$312M 🟰 in line with est. $310.1M
  • Subscription Revenue Growth: Raised to 27% (from 25%) ✅
  • EBITDA Margin: Steady at 20%

Guidance excludes a major PMS project, which may add upside later.

🏷️ Business Highlights

  • 14th straight quarter of record revenue.
  • Strong momentum in cloud-native hospitality SaaS, including Book4Time.
  • Sales pipeline and recurring backlog continue to grow.

⚠️ Notable Risks

Cited macroeconomic uncertainty and sales pipeline conversion risks.

Free cash flow turned negative.

Liquidity decline signals execution will be key.

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