Agilysys, Inc. reported a significant increase in financial performance for the second quarter and first half of fiscal 2026, with total net revenue reaching $79.3 million for the three months ended September 30, 2025, a 16.1% increase from $68.3 million in the same period last year. For the first half of the fiscal year, net revenue rose to $156.0 million, up 18.4% from $131.8 million in the prior year. The company achieved a net income of $11.7 million for the quarter, compared to $1.4 million in the previous year, and $16.6 million for the first half, up from $15.5 million.
The growth in revenue was primarily driven by a 23.0% increase in subscription and maintenance revenue, which totaled $51.0 million for the quarter, bolstered by contributions from the recently acquired Book4Time, a spa management software company. Professional services revenue also saw an increase of 11.8%, reaching $18.2 million. However, product revenue declined by 4.1% to $10.1 million, attributed to a shift in customer preference towards subscription-based software licenses and reduced hardware needs.
Agilysys has made strategic moves to enhance its market position, including the acquisition of Book4Time for $145.8 million, which was completed in August 2024. This acquisition is expected to expand Agilysys' offerings and customer base globally. The company has also focused on increasing its workforce, particularly in product development and sales, leading to a rise in operating expenses. Total operating expenses for the quarter were $34.8 million, a decrease from the previous year, primarily due to a reduction in legal settlements and other charges.
Operationally, Agilysys reported a gross profit margin of 61.7% for the quarter, down from 63.3% a year earlier, reflecting changes in revenue composition. The company’s total assets decreased slightly to $425.6 million as of September 30, 2025, from $434.4 million at the end of the previous fiscal year, while total liabilities also fell to $128.8 million from $137.3 million. The company’s cash and cash equivalents stood at $59.3 million, down from $73.0 million, indicating a focus on managing liquidity amid ongoing investments.
Looking ahead, Agilysys aims to continue its growth trajectory by enhancing its product offerings and expanding its market reach. The company plans to invest in software development and marketing to drive revenue growth, particularly in subscription services. Management remains optimistic about future performance, despite macroeconomic challenges, and is committed to improving operational efficiencies and shareholder value.
About AGILYSYS INC
Agilysys, Inc. is a leading provider of hospitality software solutions, specializing in cloud-native SaaS and on-premise applications for hotels, casinos, and restaurants. With a focus on enhancing guest experiences, its key offerings include point-of-sale, property management, and inventory solutions. Targeting a $16 billion market, Agilysys is innovating with integrated systems that streamline operations and improve service efficiency, positioning itself for growth in the competitive hospitality sector.
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