Agilysys Inc (NASDAQ:AGYS), a provider of hospitality software solutions, stock surges 23.33% (As on May 20, 11:23:52 AM UTC-4, Source: Google Finance) after the company reported better-than-expected fourth quarter results. Recurring revenue (comprised of subscription and maintenance charges) was a record $46.2 million, or 62.2% of total net revenue, compared to $36.6 million, or 58.8% of total net revenue for the same period in fiscal 2024. Subscription revenue increased 42.7% year-over-year and was 64.4% of total recurring revenue compared to 57.0% of total recurring revenue in the fourth quarter of fiscal 2024. This included Book4Time and services revenue growth of 21.7%. Gross margin was 60.7% in the fiscal 2025 fourth quarter compared to 61.5% in the comparable prior-year period. Net income attributable to common shareholders in the fiscal 2025 fourth quarter was $3.9 million, or $0.14 per diluted share, compared to $3.0 million, or $0.11 per diluted share, in the comparable prior-year period. Adjusted EBITDA (non-GAAP) was $14.8 million compared to $11.0 million in the comparable prior-year period. Free cash flow (non-GAAP) in the fiscal 2025 fourth quarter was $26.5 million compared to free cash flow of $29.3 million in the fiscal 2024 fourth quarter. Ending cash balance was $73.0 million compared to ending cash balance of $144.9 million as of fiscal 2024 year-end.
Meanwhile, in a significant move to upgrade its point-of-sale (POS) capabilities, Boyd Gaming Corporation has entered into a Software-as-a-Service (SaaS) agreement with Agilysys, Inc. The deal will see the implementation of the InfoGenesis omnichannel enterprise POS ecosystem across Boyd Gaming’s 28 gaming entertainment properties in the United States. The agreement also includes additional Agilysys solutions such as OnDemand, guest self-service kiosks, kitchen display stations, loyalty promotions, and analytics tools.
AGYS in the fourth quarter of FY25 has reported the adjusted earnings per share of 54 cents, beating the analysts’ estimates for the adjusted earnings per share of 35 cents. The company had reported the adjusted revenue growth of 19.4 percent to $74.3 million in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $71.58 million.
Looking ahead, the company provided guidance for fiscal year 2026, projecting revenue between $308 million and $312 million. This outlook falls short of the analyst consensus of $318.8 million. Agilysys expects adjusted EBITDA to be 20% of revenue for the full fiscal year. Subscription revenue growth expectations exclude any material revenue from the large scale PMS rollout currently in progress.