Private Securities Litigation Reform Act of 1995, including statements regarding our financial guidance. As has become customary in these updates, let me cover the details pertaining to sales and selling success first before switching to revenue, profitability, guidance increases, and other business updates. one five were up 15% despite last year being a big record sales year. They selected as many as 21 Agilysys software solutions, including POS, PMS, service optimization, booking engine, sales and catering, golf, and spa.
Fiscal 2026 Q2 revenue was a record $79.3 million, the 15th consecutive record revenue quarter, 16.1% higher than the comparable prior year period. Overall, revenue during the first half of fiscal 2026, Q1 plus Q2, was $156 million, 18.4% higher than revenue during the first half of last fiscal year. Fiscal 2026 Q2 recurring revenue grew 23% year-over-year and 4.8% sequentially quarter-over-quarter to a record $51 million. This recurring revenue year-over-year increase was driven mainly by subscription revenue increase of 33.1%.
This is now the seventh consecutive quarter of overall subscription growth of greater than 30%. Subscription revenue now constitutes 65.5% of total recurring revenue compared to 60.5% Q2 last year. Subscription revenue from POS and related add-on modules grew by 18% year-over-year, and organic subscription revenue from PMS and related add-on modules grew by 55%. Fiscal 2026 Q2 was the best quarter on record with respect to the sum of annual recurring revenue, ARR, of all subscription projects implemented during the quarter.
| Metric | Period | Current guidance |
|---|---|---|
| Subscription revenue growth | FY2026 | 29% |
| Total revenue | FY2026 | $315M-$318M |
| Adjusted EBITDA (% of revenue) | FY2026 | 20% |
| Professional services revenue (sequential) | Q3 FY2026 | down more than 5% sequentially |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +16.1% | Record $79.3M vs $68.3M, driven by recurring revenue and strong project implementations |
| Recurring revenue | +23% | Record $51M, led by subscription growth; now 64.3% of total net revenue vs 60.7% prior year |
| Subscription revenue | +33.1% | 7th consecutive quarter above 30%; subscription now 65.5% of recurring revenue vs 60.5% a year ago |
| Professional services revenue | +11.8% | Record $18.2M, increasingly driven by project implementations |
| Annual maintenance revenue | +7.5% | Record despite customer preference for cloud SaaS |
| Adjusted EBITDA | +34% | $16.4M vs $12.2M in the year-ago quarter |
| Diluted EPS | — | $0.41 vs $0.05 prior year; adjusted diluted EPS $0.40 vs $0.34 |
| Free cash flow | — | $15M vs $5.9M in the prior year quarter |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| AI tools | — | Boosting efficiency across services (automating complex product configuration), product development, and implementation speed; building sustainable competitive advantages | — |
| Product ecosystem modernization | 6-7 years re-engineering products into unified, cloud-native modernized solutions | Modernization complete and in the field 1-3 years; products improving rapidly and easier to implement, widening the gap versus competitors | — |
| Marriott PMS project | — | Excluded from all sales numbers and guidance; expected to be margin accretive over a couple of quarters | — |
| Services capacity | Bulk capacity build completed around April-May of the calendar year | Enough capacity now to deploy what is being sold; teams will expand steadily but no more bulk hiring needed | — |
| Product ecosystem attach rates | — | New customers average 7 products per deal (record); PMS deals average 14 products; popular add-ons include golf, spa, sales & catering, booking engine, and loyalty promotions | — |