AGILYSYS INC Q4 FY2025 earnings call

• Fiscal 2025 was a record sales year globally, with record sales in international regions, gaming casinos, hotels/resorts, and North America domestic.
• Q4 2025 was the best sales quarter ever, with POS sales up 27% quarter-over-quarter and 16% year-over-year.
• PMS and related add-on modules (excluding Book4Time) were 58% higher than the previous best year.
• Demo plus sales pipeline was at record levels, 18% higher year-over-year as of March end.
• Subscription revenue grew 42.7% year-over-year in Q4 2025, services revenue was a record, and professional services teams were hired to support project deployments.

Fiscal 2025 was a record global sales year. Subscription SaaS software and services had a record sales year. POS sales in Q4 2025 was the best quarter, 27% higher than Q3 and 16% higher than Q2. PMS and related add-on modules (excluding Book4Time) were 58% higher than previous best. Q4 2025 subscription revenue was a record $29.8M, growing 42.7% year-over-year and accounting for 64.4% of total recurring revenue. Services revenue was a record $17.8M. Full fiscal 2025 revenue was a record $275.6M, with recurring revenue at $170.1M, 23.2% higher year-over-year.

• Full year fiscal 2026 revenue expected $308M to $312M, driven by 25% year-over-year subscription revenue growth.
• Adjusted EBITDA expected to be 20% of revenue.
• Limited growth in one-time product revenue, with reselling of hardware reduced.
• Assumed no material subscription revenue from Marriott PMS project in 2026 guidance.

• Impact of macroeconomic factors on the business environment.
• Ability to achieve guidance levels.
• Maintaining sales momentum.
• Converting backlog into revenue.
• Risks outlined in Form 10-K and 10-Q.

Q: Stephen Sheldon on POS bookings and add-on sales A: Ramesh and Dave discuss POS improvement due to modernized and unified platform, add-on modules adding value Q: Sam Salvas on add-on sales and adoption A: Ramesh talks about ecosystem of products and PMS add-ons driving adoption Q: Brian Schwartz on POS migrations and Marriott beta testing A: Ramesh discusses customer-controlled migration pace and positive beta testing for Marriott Q: Nehal Chokshi on demo plus pipeline and Marriott guidance A: Ramesh and Dave talk about pipeline growth and Marriott project's status Q: George Sutton on international and Book4Time A: Ramesh discusses international growth potential and positive Book4Time acquisition