Agilysys Lifts Fiscal 2027 Revenue Outlook Again

The Tip Desk · October 27, 2026 · 3 min read

Second-quarter net revenue reached a record $93.4 million as subscription growth accelerated to 32.6% and the company raised full-year revenue to $374 million to $378 million.

Agilysys, Inc. (AGYS), a global provider of hospitality software solutions and services, reported record total net revenue of $93.4 million for the fiscal 2027 second quarter ended September 30, 2026, up 17.7% from $79.3 million a year earlier.

That year-over-year increase accelerated from 14.3% growth in the fiscal 2027 first quarter and 11.7% in the fiscal 2026 fourth quarter. President and Chief Executive Officer Ramesh Srinivasan said the result was the 19th consecutive record revenue quarter and that the company is raising full-year fiscal 2027 total revenue guidance to $374 million to $378 million, from a prior range of $368 million to $373 million.

Subscription revenue growth was the operating driver. Subscription revenue increased 32.6% year-over-year, faster than 26.1% growth in the first quarter and 24.1% growth two quarters earlier. Recurring revenue, comprising subscription and maintenance charges, was a record $62.2 million, or 66.6% of total net revenue, compared with $51.0 million, or 64.3% of total net revenue, in the fiscal 2026 second quarter. Subscription revenue was 71.2% of total recurring revenue, versus 65.5% a year earlier.

Srinivasan said one-time product revenue was higher than expected as the hospitality industry increased investment in modern point-of-sale technology, and that the quarter was the best-ever July-to-September sales period, keeping total backlog at record levels despite implementation and delivery. The company said it is raising full-year subscription revenue growth guidance to at least 34% from at least 32%.

Gross margin was 64.6%, compared with 61.7% in the comparable prior-year period. Professional services revenue was $19.2 million and product revenue was $12.0 million. Adjusted EBITDA, a non-GAAP measure, was $24.1 million, or 25.9% of revenue, compared with $16.4 million a year earlier. Net income was $13.2 million, or $0.46 a share, compared with $11.7 million, or $0.41 a share, a year earlier. Adjusted diluted earnings were $0.67 a share, versus $0.40 a share.

Free cash flow, a non-GAAP measure, was $14.8 million, compared with $15.0 million in the fiscal 2026 second quarter. Ending cash was $137.6 million. Contract liabilities were $69.6 million at September 30, 2026.

The company is also raising full-year fiscal 2027 Adjusted EBITDA expectations to 25% of revenue, from a prior expectation of 24%. Srinivasan said the business continues to grow ahead of previous expectations. Chief Financial Officer Dave Wood said the second quarter continued to yield strong results, with teams executing at elevated levels across the board, driven by a sustained high level of sales demand and project implementation velocity, and that the company is well positioned to continue to execute against the current forecasted plan during the second half of the fiscal year.