Agilysys Reports $76.7 Million Revenue in Q1 Fiscal 2026, Driven by Subscription Growth

Agilysys, Inc. reported a total net revenue of $76.7 million for the first quarter of fiscal 2026, marking a 20.7% increase from $63.5 million in the same period last year. The growth was primarily driven by a significant rise in subscription and maintenance revenue, which surged by 27.8% to $48.6 million, compared to $38.0 million in the prior year. Professional services revenue also saw a 16.1% increase, reaching $18.1 million, while product revenue remained relatively flat at $10.0 million, up just 0.8% from $9.9 million. Despite the revenue growth, the company reported a decrease in operating income to $4.5 million, down 21.3% from $5.7 million a year earlier, attributed to rising operating expenses.

The company’s operating expenses increased by 27.3% to $42.8 million, driven by higher costs in product development and sales and marketing, which rose by 18.6% and 68.1%, respectively. The increase in sales and marketing expenses was particularly notable due to the integration of the Book4Time acquisition and heightened marketing activities. Additionally, the gross profit margin slightly declined from 62.8% to 61.7%, reflecting changes in revenue composition and increased costs associated with service delivery.

Agilysys completed the acquisition of Book4Time, a hospitality software company, in August 2024 for a net cash consideration of $145.8 million. This acquisition is expected to enhance Agilysys' product offerings and customer base. For the three months ended June 30, 2025, Book4Time contributed $4.8 million in revenue. The integration of Book4Time is part of Agilysys' strategy to expand its solutions and improve customer engagement across its global operations.

As of June 30, 2025, Agilysys reported total assets of $426.0 million, a slight decrease from $434.4 million at the end of the previous fiscal quarter. The company’s cash and cash equivalents stood at $55.6 million, down from $73.0 million, while total liabilities decreased to $142.8 million from $168.4 million. The company’s employee headcount has also increased, reflecting its ongoing investment in talent to support growth initiatives.

Looking ahead, Agilysys aims to continue its focus on product innovation and customer-centric solutions while managing operating expenses effectively. The company anticipates that its strategic investments, including the integration of Book4Time, will drive future revenue growth and enhance shareholder value. Management remains optimistic about the company’s ability to navigate macroeconomic challenges and capitalize on growth opportunities in the hospitality software market.