Agilysys (PS3) Q2 2027 Earnings Report
DE:PS3 Q2 2027 EPS Results
- Actual EPS
- EUR 0.60
- Consensus EPS
- EUR 0.50
- Beat/Miss
- Beat by +EUR 0.11
- One Year Ago EPS
- EUR 0.36
DE:PS3 Q2 2027 Revenue Results
- Actual Revenue
- EUR 83.92M
- Expected Revenue
- EUR 81.73M
- Beat/Miss
- Beat by +EUR 2.20M
- YoY Revenue Growth
- +17.73%
Earnings Announcement Details
- Quarter
- Q2 2027
- Date
- 10/26/2026
- Time
- After Close
- Conference Call
- Monday, October 26, 2026
DE:PS3 Upcoming Earnings
Agilysys's next earnings date is estimated for January 26, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
DE:PS3 Q2 2027 Earnings Call
0:00 / 0:00
Q2 2027 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, marked by record sales, revenue, subscription growth, profitability, backlog activity, cash generation, and repeated increases to fiscal 2027 guidance. Management also highlighted broad-based momentum across HRC, FSM, APAC, Marriott, AI initiatives, and cross-selling. The main challenges were the Marriott rollout remaining below halfway complete, temporary Q3 EBITDA margin timing pressure, a sequential decline in professional services revenue, low hardware attach rates, and the fact that AI monetization is still in an early beta phase.
Company Guidance
For fiscal 2027, Agilysys expects revenue of $374 million to $378 million and subscription revenue growth of at least 34%; product revenue is expected to remain in the $20 million to $22 million range for the second half of the fiscal year, professional services should still grow in the 5% to 10% range, adjusted EBITDA is expected to be 25% of revenue, and the company still expects to exit FY '27 close to 30% of revenue, with adjusted EBITDA excluding stock-based compensation, which will continue in the 6% to 7% range for the fiscal year. For the remainder of the year, go-lives are expected to be $3.5 million to $3.7 million, putting the exit rate in the kind of 38% to 39% growth rate for subscription, though the company could do better than that; Q3 adjusted EBITDA is expected to be only slightly north of 22% of revenue, and Q4 is expected to be close to 30% of revenue.
- Record Sales Momentum Across Core VerticalsFiscal 2027 Q2 was the best-ever July-to-September sales period, following the best-ever Q1. Domestic Hotels, Resorts and Cruise ships sales increased 33% year over year, Domestic Foodservice Management sales increased 42%, and Asia Pacific sales increased 47%. Domestic HRC sales were about 23% higher than the previous record quarter.
- Major HRC Multi-Property WinThe company secured a major seven-figure multi-property competitive replacement win in the HRC resort space, including a PMS, food-and-beverage inventory procurement, and as many as 15 additional software modules.
- Record PMS and Product SalesFiscal 2027 Q2 PMS product sales, including add-on modules and excluding the Marriott PMS project, were an all-time record. The company also reported record annual recurring revenue from subscription products implemented during the quarter, excluding Marriott installs.
- Strong New-Customer and Cross-Sell ActivityThe company added 14 new customers excluding Book4Time Spa and 24 including Book4Time, with all new customer agreements subscription-based. New customer deals averaged 5.6 products, or 9.3 products when PMS was included. The company added 83 new sites within existing customer parent companies and sold additional products in 119 instances to properties already using at least one product.
- Record Product Expansion Per Existing-Customer DealThe 119 additional-product sales involved 331 new products, and the average of 2.8 products per new product sales agreement was the highest on record. This marked the fourth consecutive quarter with more than 100 instances of new product sales to current-customer properties.
- Marriott PMS Rollout Progressing as PlannedThe Marriott PMS project remains on plan, with well more than 2,000 properties live. Virtually all select-service property implementations have been completed, and the project is transitioning to full-service properties.
- Growing Marriott Add-On OpportunityBook4Time Spa was already the standard at literally thousands of Marriott properties before its acquisition. POS deployments at Marriott properties have continued to increase, while digital marketing and other module opportunities are also progressing. Management stated that the company has not yet scratched the surface of implementing POS at Marriott properties.
- AI Product Development and Industry PositioningThe company announced more than 30 AI-based features across AI-driven usage, agentic AI, multimodal user experiences, guest hyper-personalization, and revenue optimization. Several features are in pilot testing and several are already in production, with initially positive customer feedback. Development of AI-native CRS and Total Revenue Management System modules is progressing on plan, with initial beta implementations expected later this fiscal year.
- AI Governance Framework CompletedThe company completed an AI common framework covering AI governance, privacy through tokenization of personal information, security, LLM model selection, value-based usage, monitoring, and auditing. Management stated that the company appears to be leading the hospitality industry's AI journey based on its participation in industry conferences, roundtables, and committees.
- Record Revenue and Recurring RevenueFiscal 2027 Q2 revenue reached a record $93.4 million, up 17.7% year over year and 6.5% sequentially, marking the 19th consecutive record revenue quarter. First-half revenue was $181 million, up 16.1% year over year. Recurring revenue increased 22% year over year and 7.7% sequentially to a record $62.2 million.
- Accelerating Subscription RevenueSubscription revenue increased 32.6% year over year and 10% sequentially to a record $44.2 million, representing 71% of total recurring revenue. This was the 20th consecutive quarter of subscription revenue growth of at least 23%. POS and related subscription revenue grew 18.4%, while PMS and related subscription revenue grew 53.8%.
- Improving Revenue Mix and Product BacklogRecurring revenue represented 66.6% of total net revenue compared with 64.3% in the prior-year quarter. Product revenue was just under $12 million, its highest level in close to three years, while the quarter-end product backlog was 90% higher than at the same time last fiscal year.
- Improved ProfitabilityGross profit increased to $60.3 million from $49 million, and gross margin improved to 64.6% from 61.7%. Operating income increased to $15.2 million from $14.1 million, net income increased to $13.2 million from $11.7 million, and diluted EPS increased to $0.46 from $0.41. Adjusted net income was $19.1 million versus $11.4 million, and adjusted diluted EPS was $0.67 versus $0.40.
- Record Adjusted EBITDA and Services MarginsAdjusted EBITDA was a record $24.1 million, or 25.9% of revenue, compared with $16.4 million in the prior-year quarter. Professional services gross margin remained above 30% for the third consecutive quarter at 30.9%.
- Raised Fiscal 2027 GuidanceFull-year revenue guidance was raised to $374 million-$378 million from $368 million-$373 million previously and $365 million-$370 million initially. Subscription revenue growth guidance was raised to at least 34% from at least 32% previously and at least 30% initially. Adjusted EBITDA expectations were raised from 24% to 25% of revenue, with the company still expecting to exit the fiscal year close to 30% of revenue.
- Improved Cash Position and Free Cash FlowCash and marketable securities increased to $137.6 million as of September 30, 2026, from $116.9 million as of March 31, 2026. First-half free cash flow increased to $22.1 million from $10 million in the prior-year period, and the company stated that it expects free cash flow to be higher in the second half of fiscal 2027. The balance sheet has no debt.
- Strong Backlog Visibility and Low ChurnThe company reported record-level sales and PMS bookings, a backlog excluding the Marriott rollout that remained near record levels, faster-than-expected deployment of backlog, and low customer churn. Management expects approximately $3.5 million to $3.7 million of sequential subscription revenue growth in each remaining quarter, implying a 38%-39% subscription revenue growth exit rate.
- Continued Investment in Innovation and Sales CapacityManagement said R&D investments, further supported by AI-driven productivity and quality improvements, are generating reasons for existing and new customers to adopt more modules. The HRC sales team was expanded in both size and leadership quality, and the company said the sales organization still has ramp remaining after nearly doubling quota-carrying representatives over the past couple of years.
DE:PS3 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 26, 2027 | 2027 (Q3) | 0.53- | 0.38 | ― | ― |
| Oct 26, 2026 | 2027 (Q2) | 0.500.60 | 0.36 | 67.50% (+0.24) | |
| Jul 27, 2026 | 2027 (Q1) | 0.360.44 | 0.3 | 48.48% (+0.14) | |
| May 18, 2026 | 2026 (Q4) | 0.450.57 | 0.49 | 16.67% (+0.08) | |
| Jan 26, 2026 | 2026 (Q3) | 0.410.38 | 0.34 | 10.53% (+0.04) | |
| Oct 27, 2025 | 2026 (Q2) | 0.340.36 | 0.31 | 17.65% (+0.05) | |
| Jul 21, 2025 | 2026 (Q1) | 0.330.30 | 0.27 | 10.00% (+0.03) | |
| May 19, 2025 | 2025 (Q4) | 0.260.49 | 0.29 | 68.75% (+0.20) | |
| Jan 21, 2025 | 2025 (Q3) | 0.310.34 | 0.31 | 8.57% (+0.03) | |
| Oct 28, 2024 | 2025 (Q2) | 0.270.31 | 0.22 | 36.00% (+0.08) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed