Agilysys beats Q2 profit estimates on subscription revenue growth; hikes forecast
AGYS•Agilysys reported fiscal Q2 revenue of $93.4 million and adjusted EPS of $0.67, beating estimates of $90.91 million and $0.55. It raised fiscal 2027 revenue guidance to $374 million-$378 million and expects subscription revenue growth of at least 34%.
1. Quarterly results
Agilysys reported fiscal second-quarter revenue of $93.4 million, up 18% year over year, and adjusted EPS of $0.67. Both beat analyst estimates of $90.91 million in revenue and $0.55 in adjusted EPS. Net income was $13.2 million.
2. Raised outlook
The company raised its fiscal 2027 revenue guidance to $374 million-$378 million and said it expects subscription revenue growth of at least 34%. It now expects adjusted EBITDA to equal 25% of revenue, up from its previous expectation of 24%.
3. Revenue drivers
Subscription revenue grew 32.6% year over year. Agilysys said product revenue was higher than expected as the hospitality industry increased investment in modern point-of-sale technology. Record Q2 sales kept total backlog at record levels despite strong implementation and delivery results.
