Agilysys Q4 2025: Navigating Contradictions in International Growth, Cloud Migration, and Revenue Expectations

International growth strategy and challenges, customer migration to newer cloud model, subscription revenue growth expectations, add-on sales growth, and POS sales and product transformation are the key contradictions discussed in Agilysys's latest 2025Q4 earnings call.



Revenue and Sales Growth:
- Agilysys reported record revenue of $74.3 million for Q4 2025, up 19.4% from the previous year.
- The growth was driven by record sales in international regions, gaming casinos, hotels, and resorts, and a significant increase in subscription SaaS software sales.

Subscription Revenue and Services:
- Subscription revenue reached a record $29.8 million, up 42.7% from the previous year.
- This increase was attributed to a strong performance in implementing professional services and a focus on recurring revenue, which now represents 64.4% of total recurring revenue.

Point-of-Sale (POS) Sales Recovery:
- POS sales during Q4 2025 were the best of the fiscal year, 27% higher than the previous quarter and 16% higher than the previous year.
- The recovery was due to the successful transformation to a modernized and unified POS platform, which simplified implementations and improved customer satisfaction.

Backlog and Sales Pipeline Growth:
- The sales pipeline measured as annual contract value reached a record level, 18% higher as of March 2025 compared to the same time last year.
- Growth was driven by more customers reaching the product demonstration stage, enhancing win ratios, and the increasing adoption of modernized solutions.