Agilysys (AGYS) Q1 2027 earnings summary

Executive summary

• Achieved record Q1 results with net revenue of $87.7M, up 14.3% year-over-year, marking the 18th consecutive record revenue quarter and the best April–June period on record.

• Net income rose to $9.0M ($0.32 per diluted share) from $4.9M ($0.17 per diluted share) year-over-year, with operating income more than doubling and operating margin rising to 11.1%.

• Secured three major seven-figure multi-product ecosystem wins, including two in U.S. casino gaming and one in Australia, all against the main competitor.

• Added 15 new customers (excluding Book4Time), each licensing an average of six products, and 87 new properties from existing customers, with 101 of 102 new properties on subscription licenses.

• AI adoption strategy progressing, with 30+ AI-based features in pilot or near completion, and a central orchestration layer built for scalable, secure AI deployment.

Financial highlights

• Q1 FY27 revenue reached $87.7M, up 14.3% year-over-year, driven by 26.1% growth in subscription revenue and 8.3% in professional services.

• Recurring revenue was $57.7M (65.9% of total), up 18.8% year-over-year; subscription revenue was $40.2M (69.7% of recurring revenue).

• Gross profit was $55.7M (63.5% margin), up from $47.3M (61.7%) a year ago.

• Adjusted EBITDA was $18.3M (20.8% of revenue), up from $12.5M; adjusted EPS was $0.49.

• Free cash flow improved to $7.3M from a $5M loss in the prior year quarter; cash and marketable securities at $123.7M.

Outlook and guidance

• Raised FY27 revenue guidance to $368M–$373M (15–17% growth), up from $365M–$370M.

• Subscription revenue growth guidance increased to at least 32% (from 30%).

• Adjusted EBITDA guidance maintained at 24% of revenue for the year, with Q4 exit rate expected near 30%.

• Professional services revenue expected to grow 5–10% for the year; product revenue to remain flat at ~$10M per quarter.

• Management expects continued investment in product innovation, international expansion, and operational efficiency to drive future growth.