Earnings release
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Exhibit 99.1 AGILYSYS ANNOUNCES RECORD REVENUE OF $93.4M IN FISCAL 2027 SECOND QUARTER Inclusive of Subscription Revenue Growth of 32.6% and Quarter Adjusted EBITDA of 25.9% Raises Full-Year Fiscal 2027 Guidance Levels: Total Revenue Range to $374M to $378M and Subscription Revenue Growth to At Least 34% ALPHARETTA, GA – October 26, 2026 - Agilysys, Inc. (NASDAQ: AGYS), a leading global provider of hospitality software solutions and services, today reported results for its fiscal 2027 second quarter ending September 30, 2026. Summary of Fiscal 2027 Second Quarter Financial Results • Total net revenue increased 17.7% to a record $93.4 million compared to total net revenue of $79.3 million in the comparable prior-year period. • Recurring revenue (comprising subscription and maintenance charges) was a record $62.2 million, 66.6% of total net revenue, compared to $51.0 million, 64.3% of total net revenue for the same period in fiscal 2026. Subscription revenue increased 32.6% year-over-year and was 71.2% of total recurring revenue compared to 65.5% of total recurring revenue in the second quarter of fiscal 2026. • Gross margin was 64.6% in the fiscal 2027 second quarter compared to 61.7% in the comparable prior-year period. • Net income in the fiscal 2027 second quarter was $13.2 million, $0.46 per diluted share, compared to $11.7 million, $0.41 per diluted share, in the comparable prior-year period. • Adjusted EBITDA (non-GAAP) was $24.1 million compared to $16.4 million in the comparable prior-year period (reconciliation included in financial tables). • Adjusted diluted EPS (non-GAAP) was $0.67 per share in the fiscal 2027 second quarter compared to $0.40 per share in the comparable prior-year period (reconciliation included in financial tables). • Free cash flow (non-GAAP) in the fiscal 2027 second quarter was $14.8 million compared to free cash flow of $15.0 million in the fiscal 2026 second quarter (reconciliation included in financial tables). Ending cash balance was $137.6 million compared to ending cash balance of $116.9 million as of fiscal 2026 year-end. Ramesh Srinivasan, President and CEO of Agilysys, commented, “Revenue was a record $93.4 million during Q2 Fiscal 2027, the 19th consecutive record revenue quarter, driven by subscription growth of 32.6%. Q2 Fiscal 2027 one-time product revenue was higher than expected as the hospitality industry continues to increase its investments in modern point of sale (POS) technology solutions. The industry also continues to move forward in earnest to implement the modern, cloud-native ecosystem of software solutions that allows them to improve operational efficiencies and deliver great guest experiences. Q2 Fiscal 2027 was yet another record sales quarter, the best ever Q2 July to September sales period, keeping total backlog at record levels despite strong implementation and delivery results. The business continues to grow ahead of our previous expectations. As a result, we are once again raising full fiscal year total annual revenue guidance to now be in the range of $374 million to $378 million, driven among other things, by an increase in subscription revenue growth, now expected to increase by at least 34% year over year. We expect full fiscal year Adjusted EBITDA to be 25% of revenue, higher than the prior expectation of 24%,” Srinivasan concluded. Fiscal 2027 Outlook The Company is raising full year subscription revenue growth guidance of at least 32% year-over-year to at least 34% and full year fiscal 2027 total revenue to be $374 million to $378 million. Adjusted EBITDA expectations are also increasing to 25% of revenue for the full fiscal year. Dave Wood, Chief Financial Officer, commented, “The second quarter of the fiscal year has continued to yield strong results. The teams are continuing to execute at elevated levels across the board, driven by a sustained high level of sales demand
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and project implementation velocity. We are pleased to be in a position once again to increase our full year expectations as a result of this continued momentum. The company is well positioned to continue to execute against the current forecasted plan during the second half of the fiscal year.” 2027 Second Quarter Conference Call and Webcast Agilysys is hosting a conference call and webcast today, October 26, 2026, at 4:30 p.m. ET. Both the call and the webcast are open to the public. Interested parties can register for the call at https://register-conf.media- server.com/register/BIac8a5e2d79e747db9c282b61d3c6416b. After registration, an email confirmation with a personalized PIN will be provided along with further access details. Please plan to register 15 minutes prior to the presentation to receive confirmation and further instruction in a timely manner. Interested parties can also access the conference call live through the Events and Presentations section of the Investor Relations page of Agilysys.com. Approximately two hours after the call has concluded, an archived version of the webcast will be available for replay at the same location. Forward-Looking Language This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “outlook,” “forecast,” “preliminary,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “would,” “could,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, our revenue, subscription revenue and Adjusted EBITDA guidance for the 2027 fiscal year. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated herein and in other filings and statements include, among others, the impact macroeconomic factors may have on the overall business environment, our ability to achieve our fiscal 2027 guidance, maintaining sales momentum, the company's ability to convert the backlog into revenue, and the Risk Factors described in the Company’s filings with the Securities and Exchange Commission, including the Company’s reports on Form 10-K and Form 10-Q. Additionally, references to "record" financial and business levels in this document refer only to the time period after Agilysys made the transformation to an entirely hospitality focused software solutions company in FY2014. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement that may be made from time to time, whether written or oral, whether as a result of new information, future developments or otherwise. Use of Non-GAAP Financial Information To supplement the unaudited consolidated financial statements presented in accordance with U.S. GAAP in this press release, certain non-GAAP financial measures as defined by the SEC rules are used. These non-GAAP financial measures include EBITDA, Adjusted EBITDA, adjusted net income, adjusted basic earnings per share, adjusted diluted earnings per share and free cash flow. Management believes that such information can enhance investors’ understanding of the Company’s ongoing operations. The Company has included the following non-GAAP financial measures in this press release: adjusted net income, adjusted basic earnings per share and adjusted diluted earnings per share. The Company believes these non-GAAP financial measures provide valuable insight into the Company’s overall profitability from core operations before certain non-cash and non-recurring charges. The Company defines adjusted net income as net income before amortization expense (including amortization of developed technology), share-based compensation, other (gains) and charges, net, and legal settlements, less the related income tax effect of these adjustments, as applicable, at the Company's current combined federal and state income statutory tax rate and tax events as defined in the accompanying tables and defines adjusted earnings per share as adjusted net income divided by basic and diluted weighted average shares outstanding. See the accompanying tables below for the definitions and reconciliation of these non-GAAP measures to the most closely related GAAP measures.
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About Agilysys Agilysys delivers state-of-the-art software and services built exclusively for hospitality, helping organizations go beyond traditional property management (PMS), point-of-sale (POS), and food and beverage inventory and procurement systems. Its best-in-class solutions operate independently or as a unified ecosystem that connects data and workflows across an operation, property or enterprise. Powered by intelligent guest profiles, data-driven capabilities, and embedded artificial intelligence (AI), Agilysys is architected on a unified data model with a single set of APIs that create shared operational memory across all systems, enabling guest-specific insights to be acted on in real time at any touchpoint. Agilysys delivers advantage through pace and integration, transforming hospitality technology from a system of record into a system of action that accelerates innovation and the rapid delivery of new capabilities. Agilysys serves a 100% hospitality customer base, including hotels and resorts, casinos, cruise lines, corporate and campus dining, healthcare, senior living, and entertainment venues worldwide. Agilysys operates across the Americas, Europe, the Middle East, Africa, Asia-Pacific, and India with headquarters located in Alpharetta, GA. For more information visit Agilysys.com. # # # Investor Contact: Jessica Hennessy Vice President Investor Relations & Operations Agilysys, Inc. 770-810-6116 or investorrelations@agilysys.com - Financial tables follow -
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AGILYSYS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended September 30, Six Months Ended September 30, (In thousands, except per share data) 2026 2025 2026 2025 Net revenue: Subscription and maintenance $ 62,160 $ 50,955 $ 119,902 $ 99,579 Professional services 19,210 18,249 38,803 36,347 Products 11,990 10,095 22,333 20,050 Total net revenue 93,360 79,299 181,038 155,976 Cost of goods sold: Subscription and maintenance 12,614 10,850 25,340 20,833 Professional services 13,267 13,445 25,928 26,645 Products 7,172 6,037 13,805 12,236 Total cost of goods sold 33,053 30,332 65,073 59,714 Gross profit 60,307 48,967 115,965 96,262 Gross profit margin 64.6% 61.7% 64.1% 61.7% Operating expenses: Product development 19,846 17,825 40,091 35,280 Sales and marketing 11,479 9,781 23,675 21,574 General and administrative 11,294 10,164 22,404 20,920 Depreciation of fixed assets 849 964 1,675 1,908 Amortization of internal-use software and intangibles 1,421 1,432 2,848 2,890 Other (gains) charges, net 170 (5,456) 287 (5,203) Legal settlements, net — 110 — 225 Total operating expense 45,059 34,820 90,980 77,594 Operating income 15,248 14,147 24,985 18,668 Other income (expense): Interest income 1,066 346 2,056 793 Interest expense (73) (56) (142) (273) Other income (expense), net 501 1,274 654 1,372 Income before taxes 16,742 15,711 27,553 20,560 Income tax provision 3,565 4,001 5,384 3,960 Net income $ 13,177 $ 11,710 $ 22,169 $ 16,600 Weighted average shares outstanding - basic 28,142 27,882 28,122 27,838 Net income per share - basic: $ 0.47 $ 0.42 $ 0.79 $ 0.60 Weighted average shares outstanding - diluted 28,577 28,397 28,500 28,348 Net income per share - diluted: $ 0.46 $ 0.41 $ 0.78 $ 0.59
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AGILYSYS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) September 30, 2026 (Unaudited) March 31, 2026 ASSETS Current assets: Cash and cash equivalents $ 137,558 $ 116,894 Accounts receivable, net of allowance for expected credit losses of $859 and $1,105, respectively 41,108 43,069 Contract assets 5,969 4,438 Inventories 10,445 7,529 Prepaid expenses and other current assets 12,417 12,201 Total current assets 207,497 184,131 Property and equipment, net 13,048 13,950 Operating lease right-of-use assets 12,381 13,823 Goodwill 132,372 133,908 Intangible assets, net 63,379 66,359 Deferred income taxes, non-current 54,787 58,069 Other non-current assets 12,014 11,288 Total assets $ 495,478 $ 481,528 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 15,331 $ 12,445 Contract liabilities 69,639 83,009 Accrued liabilities 18,333 24,333 Operating lease liabilities, current 5,099 5,323 Total current liabilities 108,402 125,110 Deferred income taxes, non-current 10,189 10,144 Operating lease liabilities, non-current 12,120 13,721 Other non-current liabilities 7,034 5,762 Commitments and contingencies Shareholders' equity: Common shares, without par value, at $0.30 stated value; 80,000,000 shares authorized; 33,342,288 shares issued; and 28,215,472 and 28,166,478 shares outstanding at September 30, 2026 and March 31, 2026, respectively 10,003 10,003 Treasury shares, 5,126,816 and 5,175,810 at September 30, 2026 and March 31, 2026, respectively (1,539) (1,554) Capital in excess of stated value 143,883 131,632 Retained earnings 221,940 199,771 Accumulated other comprehensive loss (16,554) (13,061) Total shareholders' equity 357,733 326,791 Total liabilities and shareholders' equity $ 495,478 $ 481,528
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AGILYSYS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended September 30, (In thousands) 2026 2025 Operating activities Net income $ 22,169 $ 16,600 Adjustments to reconcile net income to net cash provided by operating activities: Loss on asset disposals — 2 Depreciation of fixed assets 1,675 1,908 Amortization of internal-use software and intangibles 2,848 2,890 Amortization of developed technology acquired 330 333 Deferred income taxes 3,222 3,188 Share-based compensation 12,281 10,029 Changes in operating assets and liabilities (19,519) (24,083) Net cash provided by operating activities 23,006 10,867 Investing activities Cash paid for business combination, net of cash acquired (884) — Capital expenditures (876) (850) Net cash used in investing activities (1,760) (850) Financing activities Debt repayments — (24,000) Proceeds from Employee Stock Purchase Plan purchases 716 777 Repurchase of common shares to satisfy employee tax withholding (1,197) (742) Net cash used in financing activities (481) (23,965) Effect of exchange rate changes on cash (101) 243 Net increase (decrease) in cash and cash equivalents 20,664 (13,705) Cash and cash equivalents at beginning of period 116,894 73,041 Cash and cash equivalents at end of period $ 137,558 $ 59,336
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AGILYSYS, INC. RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA (UNAUDITED) Three Months Ended Six Months Ended September 30, September 30, (In thousands) 2026 2025 2026 2025 Net income $ 13,177 $ 11,710 $ 22,169 $ 16,600 Income tax provision 3,565 4,001 5,384 3,960 Income before taxes 16,742 15,711 27,553 20,560 Depreciation of fixed assets 849 964 1,675 1,908 Amortization of internal-use software and intangibles 1,421 1,432 2,848 2,890 Amortization of developed technology acquired 164 167 330 333 Interest expense (income), net (993) (290) (1,914) (520) EBITDA (a) 18,183 17,984 30,492 25,171 Share-based compensation 6,293 5,000 12,281 10,029 Other (gains) charges, net 170 (5,456) 287 (5,203) Other non-operating (income) expense, net (501) (1,274) (654) (1,372) Legal settlements, net — 110 — 225 Adjusted EBITDA (b) $ 24,145 $ 16,364 $ 42,406 $ 28,850 (a) EBITDA, a non-GAAP financial measure, is defined as net income before income taxes, interest income (net of interest expense), depreciation and amortization (including amortization of developed technology) (b) Adjusted EBITDA, a non-GAAP financial measure, is defined as net income before income taxes, interest income (net of interest expense), depreciation and amortization (including amortization of developed technology), and excluding charges relating to i) share-based compensation, ii) other (gains) and charges, net, iii) other non-operating expense (income), and iv) legal settlements
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AGILYSYS, INC. RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME FOR ADJUSTED EARNINGS PER SHARE (UNAUDITED) Three Months Ended Six Months Ended September 30, September 30, (In thousands, except per share data) 2026 2025 2026 2025 Net income $ 13,177 $ 11,710 $ 22,169 $ 16,600 Amortization of developed technology acquired 164 167 330 333 Amortization of internal-use software and intangibles 1,421 1,432 2,848 2,890 Share-based compensation 6,293 5,000 12,281 10,029 Other (gains) charges, net 170 (5,456) 287 (5,203) Legal settlements, net — 110 — 225 Tax events (a) (213) 75 (1,077) (950) Income tax adjustments (1,901) (1,589) (3,730) (3,192) Adjusted net income (b) $ 19,111 $ 11,449 $ 33,108 $ 20,732 Basic weighted average shares outstanding 28,142 27,882 28,122 27,838 Diluted weighted average shares outstanding 28,577 28,397 28,500 28,348 Adjusted basic earnings per share (c) $ 0.68 $ 0.41 $ 1.18 $ 0.74 Adjusted diluted earnings per share (c) $ 0.67 $ 0.40 $ 1.16 $ 0.73 (a) Tax events include excess tax benefits or expense related to share-based compensation, release of valuation allowances against deferred income taxes, and changes in uncertain tax positions (b) Adjusted net income, a non-GAAP financial measure, is defined as net income before amortization expense (including amortization of developed technology), share-based compensation, other (gains) and charges, net, and legal settlements, less the related income tax effect of these adjustments, as applicable, at the Company’s current combined federal and state income statutory tax rate and, as defined under (a) above, tax events (c) Adjusted earnings per share, a non-GAAP financial measure, is defined as adjusted net income divided by basic and diluted weighted average shares outstanding
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AGILYSYS, INC. RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (UNAUDITED) Three Months Ended Six Months Ended September 30, September 30, (In thousands) 2026 2025 2026 2025 Net cash provided by operating activities $ 15,173 $ 15,213 $ 23,006 $ 10,867 Capital expenditures (356) (217) (876) (850) Free cash flow (a) $ 14,817 $ 14,996 $ 22,130 $ 10,017 (a) Free cash flow, a non-GAAP financial measure, is defined as net cash provided by operating activities, less capital expenditures