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Investing.com -- Agilysys , Inc. (NASDAQ:AGYS), a provider of hospitality software solutions, reported better-than-expected fourth quarter results and saw its stock rise 3.6% following the announcement.
The company posted adjusted earnings per share of $0.54 for the fourth quarter, surpassing analyst estimates of $0.35. Revenue for the quarter came in at $74.3 million, beating the consensus estimate of $71.58 million and representing a 19.4% increase YoY.
Subscription revenue, a key growth driver for Agilysys, jumped 42.7% YoY and accounted for 64.4% of total recurring revenue in Q4. Total (EPA:TTEF) recurring revenue reached a record $46.2 million, making up 62.2% of total net revenue.
"We are pleased with our fourth quarter results, which featured year-over-year subscription revenue growth of 42.7% including Book4Time and services revenue growth of 21.7%, producing the 13th consecutive record quarter for overall revenue," said Ramesh Srinivasan, President and CEO of Agilysys.
For the full fiscal year 2025, Agilysys reported total revenue of $275.6 million, up 16.1% YoY. Subscription revenue grew 39.5% for the year.
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.
Dave Wood, Chief Financial Officer, commented, "We are pleased with another year of record revenue and strong year-over-year subscription revenue growth. The record sales year has driven backlog to record levels as we focus on the execution of our FY26 financial plan."
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