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Jun 30, 2024
Agilysys Q1 2025 Earnings Report
Agilysys reported a record revenue quarter, driven by strong subscription and services revenue growth and increased profitability.
Key Takeaways
Agilysys reported a record revenue of $63.5 million for Q1 2025, a 13.3% increase year-over-year. Subscription revenue grew by 32.0%. Adjusted EBITDA was $12.1 million, and adjusted EPS was $0.30.
Total net revenue increased by 13.3% to a record $63.5 million.
Recurring revenue reached a record $38.0 million, representing 59.9% of total net revenue.
Subscription revenue increased by 32.0% year-over-year and accounted for 58.1% of total recurring revenue.
Net income attributable to common shareholders was $14.1 million, or $0.50 per diluted share.
Agilysys
Agilysys
Agilysys Revenue by Segment
Revenue by Segment
Products Revenue
CapyFin.comSubscription & maintenance Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
The Company expects full year fiscal 2025 revenue to be $275 million to $280 million, including higher than 27% year-over-year subscription revenue growth. Adjusted EBITDA is expected to be 16% of revenue for the full fiscal year.
Positive Outlook
- Full year fiscal 2025 revenue expected to be $275 million to $280 million.
- Subscription revenue growth is expected to be higher than 27% year-over-year.
- Adjusted EBITDA is expected to be 16% of revenue for the full fiscal year.
- Subscription and services revenue growth are ahead of fiscal year 2025 plan.
- Profitability levels and continued operating leverage expansion allow flexibility to continue to invest in future revenue growth and revenue expansion initiatives.
Challenges Ahead
- Product revenue was negatively impacted due to customers increasingly preferring subscription licenses over one-time perpetual licenses.
- Product revenue was negatively impacted due to lesser hardware revenue.
- Macroeconomic factors may have an impact on the overall business environment.
- Company's ability to achieve fiscal 2025 guidance is subject to risks.
- Company's ability to maintain sales levels is subject to risks.
Revenue & Expenses
Visualization of income flow from segment revenue to net income