Agilysys (NASDAQ:AGYS) announced record financial results for the fourth quarter and full fiscal year 2026, driven by strong subscription demand and artificial intelligence deployment.

The hospitality software company reported total revenue of $82.9 million for the quarter ended March 31, 2026, an 11.7% increase from $74.3 million in the same period last year.

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Record Subscription and Recurring Revenue

Subscription revenue surged 24.1% year-over-year to a record $36.9 million in the fourth quarter.

Total recurring revenue reached $54.4 million, representing 65.5% of total quarterly revenue.

President and CEO Ramesh Srinivasan called the quarter "an excellent overall business quarter," noting record sales, revenue, and profitability.

He highlighted that the period marked the highest sales quarter based on annual contract value, excluding the Marriott property management system project.

This achievement represents the 17th consecutive quarter of record revenue for the company.

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Full-Year Financial Performance

For fiscal year 2026, total revenue climbed 15.9% to a record $319.3 million.

Recurring revenue for the full year increased 21.1% to $205.9 million, while subscription revenue grew 30.2% to $137.1 million.

The annual subscription growth exceeded management's initial expectation of 25% growth.

CFO Dave Wood noted that the large PMS rollout contributed about 0.2 percentage points to fiscal 2026 subscription revenue growth, meaning subscription growth outside that project was approximately 30%.

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Fourth-quarter gross margin expanded to 64.4%, reflecting improved profitability.

Annual adjusted EBITDA reached $67.7 million, and full-year free cash flow expanded significantly to $68.1 million.

Agilysys ended the fiscal year with cash and marketable securities of $116.9 million.

Positive Outlook for Fiscal 2027

Management issued a positive outlook for fiscal year 2027, projecting total revenue between $365 million and $370 million.

The guidance forecasts subscription revenue growth to exceed 30%.

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The company plans to sustain momentum through new AI product rollouts and confirmed that the Marriott PMS implementation timeline remains on track.