Private Securities Litigation Reform Act of 1995, including statements regarding our financial guidance. Let me cover sales and selling success first before discussing revenue, profitability, the decision to raise guidance levels provided a couple of months ago, and other details. FY 2027 Q1 was an excellent overall business quarter for Agilysys, including with respect to sales, revenue, and profitability, each of which set a new Q1 quarter record. This was the best sales success April to June Q1 period on record.
A major casino resort currently under construction in the Las Vegas Strip chose Agilysys for point-of-sale, POS, property management system, PMS, and several other software modules. There is no guarantee that each upcoming quarter will be a record. We can, however, state with a high degree of confidence that fiscal 2027 will be a record best year for sales, revenue, and profitability. This is a business that should be judged on annual results and full-year guidance levels.
We also added 87 new properties, which were not using any of our software solutions before, but the parent company was already a customer. In addition, there were 106 instances of selling software solutions to properties which were already using at least one of our other products. Additional product adoption by existing customers continues to be a big contributor to sales and revenue growth. Several of these features are in the process of being deployed at pilot customer properties, while the remaining are nearing development and testing completion, as scheduled and on plan.
| Metric | Period | Current guidance |
|---|---|---|
| Total revenue | FY2027 | $368M-$373M |
| Subscription revenue growth | FY2027 | at least 32% |
| Adjusted EBITDA (% of revenue) | FY2027 | 24% |
| Product revenue | FY2027 | flat, ~$10M/quarter (~$40M/year) |
| Professional services growth | FY2027 | 5%-10% |
| Q2 subscription revenue growth | FY2027 Q2 | close to 30% |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +14.3% | $87.7M vs $76.7M, driven by subscription and professional services growth |
| Subscription revenue | +26.1% | Record $40.2M; better-than-expected sales and faster backlog conversion, led by PMS +39.7% and POS +18.5% |
| Recurring revenue | +18.8% | Record $57.7M, 65.9% of total revenue |
| Professional services revenue | +8.3% | Record $19.6M with gross margin at 35.4% |
| Gross profit | +17.8% | $55.7M vs $47.3M; margin rose to 63.5% from 61.7% on product mix |
| Adjusted EBITDA | +46.4% | $18.3M vs $12.5M on higher recurring revenue while costs stayed in line |
| Diluted EPS | +88% | $0.32 vs $0.17; adjusted diluted EPS $0.49 vs $0.33 |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Marriott PMS project | Prior quarter view suggested a roughly two-year rollout | On plan and on schedule; management still targets 18-24 months to completion as more complex full-service properties come online | — |
| AI adoption | 30+ AI features announced at the April Inspire user conference | Features rolling out July-September via a central orchestration layer; AI-native CRS and Revenue Intelligence modules on plan for beta later this fiscal year | — |
| International expansion | Main challenge is getting the Agilysys name into RFPs abroad | Flagship Australia win acts as a catalyst, but management wants more mid-size wins; PMS inclusion still low in APAC/EMEIA | — |
| PMS vs POS mix | POS historically larger than PMS in subscription revenue | PMS subscription revenue surpassed POS for the first time; POS growth still expected in high-teens to low-20s | — |