Includes Subscription Revenue Growth of 33%

Raises Full-Year Fiscal 2026 Guidance Levels: Revenue Range to $315M to $318M and

Subscription Revenue Growth to 29%

ALPHARETTA, GA – October 27, 2025 - Agilysys, Inc. (NASDAQ: AGYS), a leading global provider of hospitality software solutions and services, today reported results for its Fiscal 2026 second quarter ending September 30, 2025.

Summary of Fiscal 2026 Second Quarter Financial Results

• Total net revenue increased 16.1% to a record $79.3 million compared to total net revenue of $68.3 million in the comparable prior-year period.
• Recurring revenue (comprised of subscription and maintenance charges) was a record $51.0 million, or 64.3% of total net revenue, compared to $41.4 million, or 60.7% of total net revenue for the same period in Fiscal 2025. Subscription revenue increased 33.1% year-over-year and was 65.5% of total recurring revenue compared to 60.5% of total recurring revenue in the second quarter of Fiscal 2025.
• Gross margin was 61.7% in the Fiscal 2026 second quarter compared to 63.3% in the comparable prior-year period.
• Net income in the Fiscal 2026 second quarter was $11.7 million, or $0.41 per diluted share, compared to $1.4 million, or $0.05 per diluted share, in the comparable prior-year period.
• Adjusted EBITDA (non-GAAP) was $16.4 million compared to $12.2 million in the comparable prior-year period (reconciliation included in financial tables).
• Adjusted diluted EPS (non-GAAP) was $0.40 per share in the Fiscal 2026 second quarter compared to $0.34 per share in the comparable prior-year period (reconciliation included in financial tables).
• Free cash flow (non-GAAP) in the Fiscal 2026 second quarter was $15.0 million compared to free cash flow of $5.9 million in the Fiscal 2025 second quarter (reconciliation included in financial tables). Ending cash balance was $59.3 million compared to ending cash balance of $73.0 million as of Fiscal 2025 year-end.

Ramesh Srinivasan, President and CEO of Agilysys, commented, “We are pleased to report yet another excellent set of quarter results and increased expectations for the remainder of the fiscal year. Q2 Fiscal 2026 revenue was $79.3 million, the 15th consecutive quarter of record revenue, with 16% year-over-year total revenue growth driven by strong subscription revenue growth of 33%, including Book4Time. 

Mr. Srinivasan continued, “Q2 Fiscal 2026 was our second highest selling success quarter, measured in annual contract value terms. The last few quarters have been some of the highest sales success quarters in our history, creating strong business momentum. Even though we continue to achieve excellent progress with product implementations in the field, the sustained high demand for our modernized cloud-native ecosystem of hospitality software solutions once again has kept cumulative backlogs at record levels, providing us good visibility for the second half of the fiscal year.”

“As a result, we are raising the Fiscal 2026 full year top-line revenue guidance range to $315 million to $318 million and subscription revenue growth expectations to 29% from the previously guided 27%. While we continue to make good progress with the major PMS project we have been working on, guidance levels continue to exclude any significant subscription revenue contribution from this project” Mr. Srinivasan concluded.

Fiscal 2026 Outlook

The Company is raising guidance of total revenue range to $315 million to $318 million for the full fiscal year and is increasing subscription revenue growth expectations to 29% year-over-year. Adjusted EBITDA expectations remain at 20% of revenue for the full fiscal year. Subscription revenue growth expectations exclude any material revenue from the large-scale PMS project currently in progress.

Dave Wood, Chief Financial Officer, commented, “We continue to make good progress with our disciplined, profitable growth objectives. Business momentum during the first half of Fiscal 2026 has been strong, fueled by elevated sales levels and a high velocity of subscription revenue project deployments. As a result, we are increasing our full year Fiscal 2026 subscription revenue annual growth expectation to 29% year over year and annual revenue range to $315 million to $318 million.”

2026 Second Quarter Conference Call and Webcast

Agilysys is hosting a conference call and webcast today, October 27, 2025, at 4:30 p.m. ET. Both the call and the webcast are open to the public. Interested parties can register for the call at https://register-conf.media-server.com/register/BI72f30983d3cf4b45a0d406ea8d9ddb29.  After registration, an email confirmation with a personalized PIN will be provided along with further access details. Please plan to register 15 minutes prior to the presentation to receive confirmation and further instruction in a timely manner.

Interested parties also can access the conference call live through the Events and Presentations section of the Investor Relations page of Agilysys.com. Approximately two hours after the call has concluded, an archived version of the webcast will be available for replay at the same location.

Forward-Looking Language

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “outlook,” “forecast,” “preliminary,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “would,” “could,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, our revenue, subscription revenue and Adjusted EBITDA guidance for the 2026 fiscal year.  

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated herein and in other filings and statements include, among others, the impact macroeconomic factors may have on the overall business environment, our ability to achieve our Fiscal 2026 guidance, maintaining sales momentum, the Company's ability to convert the backlog into revenue, and the Risk Factors described in the Company’s filings with the Securities and Exchange Commission, including the Company’s reports on Form 10-K and Form 10-Q. Additionally, references to "record" financial and business levels in this document refer only to the time period after Agilysys made the transformation to an entirely hospitality focused software solutions company in FY2014.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement that may be made from time to time, whether written or oral, whether as a result of new information, future developments or otherwise.

Use of Non-GAAP Financial Information

To supplement the unaudited consolidated financial statements presented in accordance with U.S. GAAP in this press release, certain non-GAAP financial measures as defined by the SEC rules are used. These non-GAAP financial measures include EBITDA, Adjusted EBITDA, adjusted net income, adjusted basic earnings per share, adjusted diluted earnings per share and free cash flow. Management believes that such information can enhance investors’ understanding of the Company’s ongoing operations.

The Company has included the following non-GAAP financial measures in this press release: adjusted net income, adjusted basic earnings per share and adjusted diluted earnings per share. The Company believes these non-GAAP financial measures provide valuable insight into the Company’s overall profitability from core operations before certain non-cash and non-recurring charges. The Company defines adjusted net income as net income before amortization expense (including amortization of developed technology), share-based compensation, other (gains) and charges, net, and legal settlements, less the related income tax effect of these adjustments, as applicable, at the Company's current combined federal and state income statutory tax rate and tax events as defined in the accompanying tables and defines adjusted earnings per share as adjusted net income divided by basic and diluted weighted average shares outstanding.

See the accompanying tables below for the definitions and reconciliation of these non-GAAP measures to the most closely related GAAP measures.

About Agilysys

Agilysys exclusively delivers state-of-the-art hospitality software solutions and services that help organizations go beyond what they can accomplish with traditional property management systems (PMS), point-of-sale (POS) solutions and food and beverage inventory and procurement systems (F&B I&P). Modern, state-of-the-art solutions work standalone to provide best-in-class capabilities, or together in a coordinated ecosystem that unifies data and workflows across and among properties, to equip staff members to delight guests, improve efficiency and grow margins. The Agilysys 100% hospitality customer base includes branded and independent hotels; multi-amenity resorts; casinos; property, hotel and resort management companies; cruise lines; corporate dining providers; higher education campus dining providers; food service management companies; hospitals; lifestyle communities; senior living facilities; stadiums; and theme parks. Agilysys operates across the Americas, Europe, the Middle East, Africa, Asia-Pacific, and India with headquarters located in Alpharetta, GA. For more information visit Agilysys.com.

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Investor Contact:

Jessica Hennessy

Vice President Operations & Investor Relations

Agilysys, Inc.

770-810-6116 or investorrelations@agilysys.com