AGYS earnings analysis
What we found in AGYS's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Agilysys delivered a strong fiscal Q1 2027, with revenue of $87.677 million, up 14.3% year over year, and operating margin expanding 520 basis points to 11.1%; GAAP diluted EPS was $0.32. Revenue also increased sequentially from $83 million, although gross margin declined 90 basis points and operating margin declined 410 basis points versus fiscal Q4 2026. Cash generation improved meaningfully to $7.833 million of operating cash flow, supported by a $123.7 million cash balance and zero revolver borrowings, while working-capital consumption and lower subscription/product unit margins bear monitoring.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth accelerated to $87.7M
- Revenue increased $11.002 million, or 14.3%, year over year to $87.677 million. Sequentially, revenue increased from $83 million in fiscal Q4 2026 to $87.677 million in fiscal Q1 2027.
- Recurring revenue led growth
- Subscription and maintenance revenue rose $9.119 million, or 18.8%, to $57.742 million, while total subscription revenue grew 26.1%. This category represented 65.9% of revenue, up from 63.4% a year earlier.
- Year-over-year profitability improved
- Gross margin expanded 180 basis points year over year to 63.5% from 61.7%, and operating income more than doubled to $9.738 million from $4.521 million. Operating margin improved to 11.1% from 5.9%.
- EPS rose year over year, fell sequentially
- GAAP diluted EPS was $0.32, up from $0.17 in fiscal Q1 2026. This was below the immediately preceding quarter's $0.44, consistent with operating margin declining from 15.2% to 11.1% sequentially.
- Operating cash flow turned positive
- Operating cash flow turned positive at $7.833 million from an outflow of $4.346 million a year earlier. Capital expenditures were $0.520 million, implying low capital intensity relative to $87.677 million of revenue.
- Net-cash liquidity remains strong
- Liquidity remained substantial, with $123.7 million of cash and cash equivalents and no outstanding principal under the $75 million revolving facility as of June 30, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Subscription unit margin compressed
- Subscription and maintenance gross margin declined 150 basis points to 78.0% from 79.5% because certain variable costs increased ahead of related subscription revenue, despite subscription and maintenance revenue rising to $57.742 million.
- Product mix pressured gross margin
- Products gross margin fell to 35.9% from 37.7%, while products revenue was only $10.342 million. Management attributed the decline to the mix of hardware and proprietary software delivered.
- Working-capital use constrained cash conversion
- Changes in net operating assets and liabilities used $10.9 million of cash, reducing $18.7 million of cash-based earnings to $7.833 million of operating cash flow.
- Development investment outpaced revenue growth
- Product-development expense increased $2.791 million, or 16.0%, to $20.245 million, outpacing total revenue growth of 14.3%. Management attributed the increase to hiring and higher salary, incentive, and benefit rates.
- No formal risk-factor update
- No material risk-factor changes were reported versus the annual report for the fiscal year ended March 31, 2026. However, management stated that tariff and trade-policy changes, conflict, currency movements, labor shortages, and natural disasters are negatively influencing customer spending and provider pricing decisions.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.32
- Gross margin
- 63.5%
- Operating margin
- 11.1%
- Segment
- One reportable hospitality-software segment; total revenue $87.677 million.
- Segment
- Subscription and maintenance revenue: $57.742 million.
- Segment
- Professional services revenue: $19.593 million.
- Segment
- Products revenue: $10.342 million.
What they said about what is next.
The 10-Q does not provide quantitative revenue or EPS guidance. Management says it expects to invest a portion of its $123.7 million cash balance in product enhancements, new products, marketing, and customer/geographic expansion; it also expects future cash-tax savings from immediate expensing of U.S. R&D under the OBBBA.
The filing reads better than the one before it.
What came before.
- 10-K · May 21, 2026
- Agilysys, Inc. demonstrated robust financial performance in fiscal 2026, achieving total revenue of $319.3 million, a 15.9% increase from the prior year, while net income rose significantly to $38.8 million. The…
- 10-Q · January 21, 2025
- Agilysys reported Q3 net revenue of $69.56M, up from $60.57M a year earlier (+$8.995M, +14.9%), driven by Subscription & Maintenance and Professional Services growth. Gross margin expanded slightly to 63.0% (62.5% prior…
- 10-Q · October 28, 2024
- Agilysys reported Q1 (three months ended Sept 30, 2024) revenue of $68.279M, up 16.5% year-over-year from $58.616M and up ~7.5% sequentially from the June quarter ($63.512M). Gross margin expanded to 63.3% (from 59.9% a…
- 10-K · May 22, 2024
- Agilysys reports total revenue of $237,464,000 for fiscal 2024, driven by a strategic shift toward subscription, cloud and professional services. Subscription & maintenance revenue was $138,069,000 in FY2024 (up from…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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