Highlights

  • Second quarter fiscal 2027 net revenue was $93,360 thousand, compared with $79,299 thousand, and net income was $13,177 thousand.
  • Diluted net income per share was $0.46 for the quarter, compared with $0.41 in the second quarter of fiscal 2026.
  • Cash and cash equivalents were $137,558 thousand at September 30, 2026, with no principal balance outstanding on the Revolving Facility.
  • Management raised fiscal 2027 revenue guidance to $374 million to $378 million and expects subscription revenue growth of at least 34%.

Agilysys, Inc. (NASDAQ: AGYS) shares were trading at USD 119.86 on October 27, 2026, down 2.91%, with a relative volume at time of 2.13. The hospitality software company acquired Gaming Hospitality Solutions, Inc. on September 1, 2026, and filed its quarterly report for the second quarter of fiscal 2027, ended September 30, 2026, on October 26, 2026, when management also raised its fiscal 2027 guidance.

Agilysys is incorporated in Delaware, and its headquarters are at 3655 Brookside Parkway in Alpharetta, Georgia. It has one reportable segment serving the global hospitality industry and provides cloud-native SaaS and on-premise software for hotels, resorts, cruise lines, casinos, corporate foodservice, restaurants, universities, stadiums and healthcare facilities. Its software includes point-of-sale, property management, inventory and procurement, and payments applications. Its fiscal year ends March 31.

Second Quarter Results

Total net revenue was $93,360 thousand for the three months ended September 30, 2026, up $14.1 million, or 17.7%, from $79,299 thousand. Subscription and maintenance revenue was $62,160 thousand, compared with $50,955 thousand. Professional services revenue was $19,210 thousand, compared with $18,249 thousand, and products revenue was $11,990 thousand, compared with $10,095 thousand. Agilysys said total subscription revenue increased 32.6%.

Gross profit was $60,307 thousand, a gross profit margin of 64.6%, compared with $48,967 thousand and 61.7%. Operating income was $15,248 thousand, compared with $14,147 thousand. Net income was $13,177 thousand, compared with $11,710 thousand, and diluted net income per share was $0.46, compared with $0.41.

On the call, management said adjusted EBITDA, a non-GAAP measure, was $24.1 million, or 25.9% of revenue, compared with $16.4 million a year earlier, and adjusted diluted earnings per share was $0.67, compared with $0.40.

Six-Month Results, Cash and Acquisition

For the six months ended September 30, 2026, net revenue was $181,038 thousand, compared with $155,976 thousand. Net income was $22,169 thousand, compared with $16,600 thousand, and diluted net income per share was $0.78, compared with $0.59.

Cash and cash equivalents were $137,558 thousand at September 30, 2026, compared with $116,894 thousand at March 31, 2026. The company has a Revolving Facility with a maximum principal amount of $75.0 million that matures August 16, 2027, with no principal balance outstanding, and it was in compliance with its financial covenants. Management said free cash flow was $22.1 million for the first six months, compared with $10 million.

On September 1, 2026, Agilysys acquired all issued and outstanding shares of Gaming Hospitality Solutions, a hospitality software company based in Denver, Colorado. The purchase price consisted of $0.9 million of cash paid at closing and $0.2 million of contingent consideration. The purchase price allocation is preliminary, and revenue and net income attributable to GHS were not material.

Risks Disclosed

Agilysys stated that global macroeconomic and geopolitical conditions, including changes in trade policies, armed conflicts and foreign currency fluctuations, are negatively influencing customer spending and provider pricing decisions, resulting in decreased demand, increased costs and reduced margins with varying impact across its markets.

Fiscal 2027 Outlook

On its second quarter call, management said it raised fiscal 2027 revenue guidance to $374 million to $378 million, from $368 million to $373 million, and subscription revenue growth guidance to at least 34%, from at least 32%. It expects product revenue of $20 million to $22 million in the second half, professional services revenue growth of 5% to 10%, and adjusted EBITDA of 25% of revenue for the year, up from 24%. Management said it expects third quarter adjusted EBITDA margin of slightly more than 22% and to exit the year close to 30% of revenue. It said adjusted EBITDA excludes stock-based compensation, expected in the 6% to 7% range.