Agilysys, Inc. has reported its fiscal 2025 fourth quarter and full year results, featuring significant growth in various financial metrics. The company's total net revenue for the fourth quarter reached a record $74.3 million, marking a 19.4% increase from the same period in the prior year. Recurring revenue, which includes subscription and maintenance charges, also hit a record high of $46.2 million, representing 62.2% of total net revenue. Subscription revenue saw an impressive 42.7% year-over-year increase and accounted for 64.4% of total recurring revenue, showcasing substantial growth from the prior year.
The gross margin for the fiscal 2025 fourth quarter was 60.7%, slightly lower than the 61.5% reported in the comparable prior-year period. Net income attributable to common shareholders in the 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 same period of the prior year. The company reported a record adjusted EBITDA of $14.8 million for the fourth quarter, up from $11.0 million in the comparable prior-year period. Adjusted diluted EPS also saw significant growth, reaching $0.54 per share compared to $0.32 per share in the prior year.
For the full fiscal year 2025, Agilysys achieved a total net revenue of $275.6 million, marking a 16.1% increase from the prior year. Recurring revenue reached a record $170.1 million, accounting for 61.7% of total net revenue. Subscription revenue showed remarkable growth, increasing by 39.5% year-over-year and representing 61.9% of total recurring revenue.
The company's gross margin for the full fiscal year 2025 was 62.4%, up from 60.7% in the comparable prior-year period. Net income attributable to common shareholders for the full year was $23.2 million, or $0.82 per diluted share, compared to $85.0 million, or $3.17 per diluted share, in the prior year. Agilysys reported a record adjusted EBITDA of $53.8 million for the full year, up from $37.1 million in the comparable prior-year period. Adjusted diluted EPS also saw a significant increase, reaching $1.55 per share compared to $1.10 per share in the prior year.
The company's free cash flow for the fiscal year 2025 was $52.3 million, compared to $40.1 million in the prior year. Agilysys ended the year with a cash balance of $73.0 million, down from $144.9 million as of fiscal 2024 year-end.
Looking ahead, Agilysys expects its full year fiscal 2026 revenue to grow to $308 million to $312 million, including 25% year-over-year subscription revenue growth. The company anticipates its adjusted EBITDA to be 20% of revenue for the full fiscal year.
Ramesh Srinivasan, President and CEO of Agilysys, expressed satisfaction with the company's results, highlighting the significant growth in subscription revenue and services revenue. He also emphasized the company's success in professional services hiring efforts and the acceleration of customer demand for its hospitality-focused software solutions.
The market has reacted to these announcements by moving the company's shares -1.45% to a price of $84.755. For the full picture, make sure to review 's 8-K report.
