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LOGILITY SUPPLY CHAIN SOLUTIONS, INC (LGTY)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 FY25: Revenue $25.0M (-2% y/y), GAAP loss ($2.8M) or ($0.08) vs. +$0.12 last year; Adjusted EPS $0.14 and Adjusted EBITDA $4.3M (+7% y/y). Recurring revenue was $21.6M (87% of total). Management cited one-time Starboard earnout and Aptean transaction costs as drivers of GAAP loss .
  • EPS beat: Adjusted EPS $0.14 vs. external consensus $0.08 (beat +75%). Revenue was roughly in line around ~$25M; third-party sources conflict on a slight beat vs. slight miss (see Estimates Context) .
  • Guidance suspended and no earnings call due to pending all-cash sale to Aptean at $14.30/share, expected to close in Q2 2025; no outlook provided .
  • Mix shift continues: Subscription +5% y/y to $14.8M; maintenance (-12%) and services (-21%) declined as clients transition to cloud and more work goes to SIs .
  • Stock reaction likely remains anchored to deal spread and regulatory/closing risk rather than fundamentals, given the definitive agreement with Aptean .

What Went Well and What Went Wrong

What Went Well

  • Subscription growth and high recurring mix: Subscription fees +5% y/y to $14.8M; recurring revenue $21.6M at 87% of total, underpinning cash-flow visibility .
  • Adjusted profitability resilience: Adjusted EBITDA rose to $4.3M (+7% y/y) despite topline softness; Adjusted EPS of $0.14, though down y/y, exceeded external EPS consensus .
  • Q2 context shows discipline: “Subscription revenues continued to grow, up nine percent year over year… our prior guidance for recurring revenue and adjusted EBITDA is unchanged as we remain confident in our ability to grow subscription fees and maintain strong margins.” — CEO Allan Dow (Q2 FY25 press release) .

What Went Wrong

  • GAAP loss on one-time costs: Operating income swung to a loss ($3.5M) and GAAP net loss was ($2.8M), driven by Starboard earnout and Aptean transaction costs, overshadowing core operating progress .
  • Legacy revenue pressure: Maintenance (-12% y/y to $6.8M) and professional services (-21% y/y to $2.7M) declined, reflecting cloud conversions and outsourcing to systems integrators .
  • No guidance and no call: Management withheld guidance and did not host a call due to the pending Aptean transaction, limiting near-term transparency and catalysts outside deal closure .

Financial Results

Summary Results (Oldest → Newest)

MetricQ3 2024Q2 2025Q3 2025
Total Revenues ($M)25.536 25.3 25.007
GAAP Diluted EPS – Continuing Ops ($)0.12 0.05 (0.08)
Adjusted EPS – Continuing Ops ($)0.19 0.11 0.14
EBITDA – Continuing Ops ($M)2.4 2.2 (2.4)
Adjusted EBITDA – Continuing Ops ($M)4.0 N/A4.3

Revenue Mix and KPIs (Oldest → Newest)

MetricQ3 2024Q2 2025Q3 2025
Subscription Fees ($M)14.114 14.5 14.818
Maintenance ($M)7.727 7.1 6.815
Professional Services & Other ($M)3.418 3.6 2.712
License Fees ($M)0.277 0.1 0.662
Recurring Revenue ($M)21.8 (86%) 21.6 (85%) 21.6 (87%)
Cash & Investments ($M)N/A~84.2 (end Q2) ~79.3 (post Q3)

Actuals vs. Street (Q3 2025)

Note: S&P Global consensus was unavailable via tool; we cite third-party aggregators and flag discrepancies (see Estimates Context).

SourceEPS Estimate ($)EPS Actual ($)SurpriseRevenue Estimate ($M)Revenue Actual ($M)Surprise
Zacks/Nasdaq0.08 0.14 +75%~24.87 implied (text says +0.55% beat) 25.01 Slight beat per text
MarketBeat0.08 (implied) 0.14 Beat25.09 25.01 Slight miss (~$0.08M)

Guidance Changes

MetricPeriodPrevious Guidance (Q2 FY25, 11/21/24)Current (Q3 FY25)Change
Total RevenuesFY25$101–$105M No outlook due to pending Aptean transaction Withdrawn/Suspended
Total Recurring RevenuesFY25$87–$89M (unchanged at Q2) No outlook Withdrawn/Suspended
Adjusted EBITDAFY25$15.0–$16.4M (unchanged at Q2) No outlook Withdrawn/Suspended

Earnings Call Themes & Trends

Note: No Q3 FY25 earnings call due to pending Aptean transaction .

TopicQ1 FY25 (Aug 22, 2024)Q2 FY25 (Nov 21, 2024)Q3 FY25 (Jan 31, 2025)Trend
AI/Technology initiativesEmphasized AI-first platform, Decision Command Center; strong gross margin; adjusted EBITDA margin ~18% in Q1 commentary Continued focus on AI and cloud offerings; subscription +9% y/y No call; press release only Consistent product narrative; limited new disclosures in Q3
Demand/macro & sales cyclesSeasonally skittish environment; protracted cycles noted Deals pushed; delayed closings; revised total revenue guide No call; top-line -2% y/y on services/maintenance declines Cautious demand tone persists
Cloud migration & maintenanceMaintenance -11% y/y; migration to cloud highlighted Maintenance -13% y/y; reiterated cloud conversions Maintenance -12% y/y; recurring 87% Ongoing shift to cloud/recurring mix
Services delivery modelProfessional services +5% in Q1 PS down 10% y/y; outsourcing to SIs PS down 21% y/y; continued SI outsourcing More partner-led services
Capital allocationQ1: ~$92M cash/investments; dividend paid Q2: ~$84.2M cash/investments; dividend paid Q3: ~$79.3M cash/investments; ~$3.7M dividend Strong liquidity, ongoing dividends

Management Commentary

  • “Due to the pending transaction with Aptean, Logility will not be hosting an earnings conference call to review its results for the quarter and will not be providing a financial outlook.” — Q3 FY25 press release .
  • “Subscription revenues continued to grow, up nine percent year over year in the current quarter… our prior guidance for recurring revenue and adjusted EBITDA is unchanged as we remain confident in our ability to grow subscription fees and maintain strong margins.” — Allan Dow, President & CEO, Q2 FY25 press release .

Q&A Highlights

No Q3 FY25 call was held. Highlights below reflect prior calls.

  • Retention and pipeline: Retention in the mid-90s; seasonality and cautious buyer behavior contributed to protracted sales cycles (Q1 commentary) .
  • Cloud migration strategy: Ending development of self-managed versions and facilitating customer transitions to cloud; expected to aid conversions (Q1 commentary) .
  • Services margins and outsourcing: Comfortable with ~30% PS margin; more work transitioning to systems integrators (Q1/Q2 commentary) .
  • Product traction: DemandAI-plus positioned as core forecasting capability; ongoing AI-led enhancements and network optimization gaining momentum (Q1 commentary) .

Estimates Context

  • S&P Global consensus estimates were unavailable via our tool for LGTY; values could not be directly retrieved.
  • External aggregators reported EPS consensus at $0.08 and actual Adjusted EPS of $0.14, a beat of +75% .
  • Revenue consensus was inconsistent across sources: Zacks/Nasdaq indicated a ~0.55% beat on $25.01M actual, while MarketBeat listed a $25.09M estimate (implying a ~$0.08M miss) .
  • Given the pending acquisition and absence of a call/guidance, near-term estimate revisions are likely limited; focus remains on deal closure timing and one-time costs flowing through GAAP .

Key Takeaways for Investors

  • Core subscription engine held up (subscription +5% y/y; 87% recurring), but legacy maintenance and services weighed on revenue (-2% y/y) .
  • Adjusted metrics showed resilience (Adj. EBITDA +7% y/y), while GAAP results were burdened by Starboard earnout and Aptean transaction costs; expect GAAP/adjusted divergence until deal close .
  • EPS materially beat third-party consensus; revenue was roughly in line with small beat/miss depending on source, limiting fundamental surprises .
  • No Q3 call and suspended guidance reduce near-term visibility; investors should monitor SEC/process milestones for the $14.30/share Aptean deal (shareholder/regulatory approvals, expected Q2 2025 close) .
  • Mix shift continues: lower maintenance and services reflect cloud migration and SI-led delivery; over time, this should support margin quality and cash-flow durability .
  • Liquidity remains solid ($79.3M cash/investments) with ongoing dividends (~$3.7M in Q3), supporting capital returns into deal close .
  • Trading lens: With fundamentals steady but overshadowed by M&A, shares likely track deal spread and perceived closing risk; fundamental re-rating awaits post-close clarity .

Sources

  • Q3 FY25 8‑K and Exhibit 99.1 (press release), including full financial tables and non-GAAP reconciliations: .
  • Q3 FY25 press release on company site; Business Wire notice of no call: .
  • Q2 FY25 press release and PDF: .
  • Q1 FY25 press release and PDF (American Software/Logility): .
  • External estimate references: Zacks/Nasdaq/Public.com EPS consensus; MarketBeat revenue estimate: .