Agilysys, Inc. (NASDAQ: AGYS), headquartered in Alpharetta, Georgia, provides software solutions and services specifically tailored for the hospitality industry. The company has reported significant growth, concluding its fiscal 2025 with record revenues and strong momentum across various product categories.

In fiscal 2025, Agilysys experienced an overall increase in total net revenue to $275.6 million, marking a 16.1% rise from the prior year. The fourth quarter alone saw a record revenue of $74.3 million, a 19.4% increase compared to $62.2 million in the same quarter last year. Notably, recurring revenue reached a record of $170.1 million for the year, constituting 61.7% of total revenue, up from 58.1% in fiscal 2024.

Subscription revenue has been a particular highlight, with fiscal 2025 recording a 39.5% year-over-year increase, reaching $107.5 million. For the fourth quarter, subscription revenue surged 42.7%, contributing to 64.4% of total recurring revenue. Agilysys’ gross margin improved to 62.4% for the full year, up from 60.7% in the previous fiscal year.

Agilysys reported fourth quarter net income attributable to common shareholders of $3.9 million, or $0.14 per diluted share, compared to $3 million, or $0.11 per diluted share a year earlier. Adjusted net income for the same period increased to $15.2 million, resulting in adjusted diluted earnings per share of $0.54, up from $0.32 in the previous year quarter.

Free cash flow for the fourth quarter was $26.5 million, a slight decrease from $29.3 million in the prior year’s quarter, and total free cash flow for fiscal 2025 amounted to $52.3 million, compared to $40.1 million in fiscal 2024. Despite substantial cash utilization for acquisitions, including a $100 million acquisition of Book4Time, cash and marketable securities stood at $73 million at the end of fiscal 2025, down from $144.9 million a year earlier.

Agilysys anticipates full-year revenue for fiscal 2026 to be in the range of $308 million to $312 million, expecting continued growth driven by a 25% increase in subscription revenue. Adjusted EBITDA is projected to be approximately 20% of revenue.

Overall, the company has established a robust trajectory toward sustained growth, evidenced by record revenues and improving margins across its subscription services and professional services.