Q1 2026 Agilysys Inc Earnings Call Transcript
Key Points
- Agilysys Inc (AGYS) reported record sales for the fiscal 2026 first quarter, with a 24% increase compared to the prior year period.
- Subscription software sales reached a record high, with a 79% increase year-over-year, indicating strong demand for cloud-native solutions.
- The company added 24 new customers in Q1, all of whom signed subscription license-based sales agreements, showcasing successful customer acquisition.
- International sales showed significant improvement, with Q1 being the second highest sales quarter for international sales.
- Agilysys Inc (AGYS) increased its subscription revenue growth guidance for fiscal year 2026 from 25% to 27%, reflecting confidence in continued sales momentum.
- Profitability in Q1 fiscal 2026 was below annual expectations due to several once-a-year cost items, including a high-cost user conference.
- One-time product revenue was lower than expected, marking the lowest quarter in about four years for perpetual software licenses.
- Despite strong sales, the company experienced a free cash flow loss of $5 million in the quarter, compared to an increase in the prior year quarter.
- Gross profit margin decreased slightly to 61.7% from 62.8% in the first quarter of fiscal 2025, due to lower margins associated with one-time revenue.
- Sales and marketing expenses increased substantially, rising from 10.5% to 14.7% of revenue, primarily due to the timing of events like the user conference.
Good day ladies and gentlemen and welcome to the Agilysys 2026 first quarter conference call. As a reminder, today's conference may be recorded. I, I'd like to turn the conference over to Jessica Hennessy, Senior Director of Corporate Strategy and Investor Relations at Agilysys. You may begin.
Thank you, Victor, and good afternoon, everybody. Thank you for joining the Agilysys fiscal 2026 first quarter conference call. We will get started in just a minute with management's comments, but before doing so, let me read the safe harbor language.
Some statements made on today's call will be predictive and are intended to be made as forward-looking within the Safe Harbor protections of the US Private Securities Litigation Reform Act of 1,995, including statements regarding our financial guidance.
Although the company believes that its forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause results
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
