Agilysys Inc. (AGYS) saw its shares climb sharply in extended trading Monday after the hospitality software provider reported record fiscal fourth-quarter revenue and issued a fiscal 2027 revenue forecast that surpassed its most recent annual sales figures. The stock rallied 16.7% to $81.90 in after-hours activity, having closed the regular session at $70.20.
The company posted total net revenue of $82.9 million for the quarter ended March 31, an 11.7% increase from $74.3 million in the same period last year. Net income rose to $12.3 million, or 43 cents per diluted share, compared with $3.9 million, or 14 cents per share, a year earlier. On an adjusted basis, diluted earnings per share came in at 63 cents, beating the analyst consensus estimate by 13 cents, according to Investing.com. Revenue also topped expectations of $81.56 million.
Recurring revenue, a key metric for investors, reached a record $54.4 million for the quarter, representing 65.5% of total net revenue. Subscription revenue climbed 24.1% year over year, underscoring the company's successful transition to a subscription-based model. CEO Ramesh Srinivasan highlighted that this was the company's 17th consecutive quarter of record revenue and expressed confidence that subscription sales will continue to drive growth in fiscal 2027.
Agilysys is guiding for fiscal 2027 revenue in the range of $365 million to $370 million, with subscription revenue expected to jump at least 30%. The company also anticipates adjusted EBITDA to reach 24% of revenue, up from 21.2% in fiscal 2026. Adjusted EBITDA, a measure of operating profit before interest, taxes, and certain non-cash charges, reflects the company's improving profitability. For fiscal 2026, full-year revenue rose 15.9% to $319.3 million, with free cash flow increasing to $68.1 million.
The strong earnings report stood out against a backdrop of weakness in the broader technology sector. The Nasdaq Composite fell 0.51% on Monday, while the S&P 500 edged down 0.07%. Agilysys shares had already gained 4.3% during the regular session, closing at $70.20, before the after-hours surge. The stock had been trading well below its 52-week high of $145.25, even as software companies with robust subscription revenue remained in favor among investors.
Agilysys specializes in hospitality software, including property management and point-of-sale (POS) systems for hotels, resorts, and restaurants. The company is expanding its product suite with new AI-native software modules, such as revenue intelligence and central reservation system products, to enhance its offerings and drive future growth. Competitive comparisons include Oracle Hospitality, which provides hotel property management and POS solutions, and PAR Technology, which focuses on POS and management software for restaurants.
According to StockStory, Agilysys revenue came in 1.7% ahead of Wall Street targets, and the midpoint of the fiscal 2027 revenue outlook was 1.1% above analyst consensus. Shares rose approximately 11% immediately following the report. However, after-hours gains may not fully persist when regular trading resumes, as extended-hours trading typically involves thinner volume and wider spreads.
CFO Dave Wood described fiscal 2026 as a "record-breaking year" and noted that sales momentum has continued into the new fiscal year. The company cautioned about broader economic risks and the challenges of maintaining sales trends and fully capitalizing on AI opportunities. The fiscal Q4 earnings webcast was held at 4:30 p.m. ET Monday, and a replay is available on the company's investor events page.