Logility Announces Third Quarter Fiscal Year 2025 Financial Results
Logility, a leader in AI-first supply chain planning software, has announced its financial results for the third quarter of fiscal year 2025. The company, known for its innovative approach to supply chain management, continues to demonstrate resilience in a rapidly evolving market. The latest financial report highlights key developments, including a proposed acquisition by Aptean, revenue trends, and financial performance metrics.
Proposed Acquisition by Aptean
On January 24, 2025, Logility revealed that it had entered into a definitive agreement with Aptean, a global provider of enterprise software solutions, under which Aptean will acquire all outstanding shares of Logility for $14.30 per share in an all-cash transaction. The deal is expected to close in the second quarter of 2025, pending customary closing conditions such as regulatory approvals and shareholder consent. This acquisition is set to enhance Aptean’s suite of supply chain solutions while providing Logility with greater resources and market reach.
Given the pending acquisition, Logility has opted not to host an earnings call or provide a financial outlook for the quarter. Instead, details of the company’s financial performance are available in its Form 10-Q, which will be filed with the SEC at a later date.
Financial Highlights for Q3 FY25
Despite facing certain market challenges, Logility has maintained strong subscription-based revenue growth. The company’s financial performance for the third quarter ending January 31, 2025, reflects a combination of strategic investments, shifting revenue streams, and acquisition-related expenses.
Revenue Performance
- Subscription revenue reached $14.8 million, marking a 5% increase from $14.1 million in the same quarter last year, signaling steady growth in cloud-based solutions.
- Recurring revenue streams, including maintenance and subscription fees, accounted for 87% of total revenue at $21.6 million, a slight dip from 86% in Q3 FY24.
- Total revenue declined slightly by 2%, totaling $25.0 million compared to $25.5 million in Q3 FY24. This was primarily due to a reduction in professional services and maintenance revenue.
- Maintenance revenue fell 12% to $6.8 million, compared to $7.7 million last year, due to increased customer migration to cloud-based solutions.
- Professional services and other revenues saw a 21% decline, totaling $2.7 million compared to $3.4 million in the previous year. This drop resulted from outsourcing services to system integrators and a reduction in internal project workloads.
- Software license revenue increased significantly, reaching $0.7 million compared to $0.3 million in Q3 FY24, demonstrating continued demand for standalone software solutions.
Profitability and Expenses
- Operating loss for Q3 FY25 was $3.5 million, a sharp contrast to the $0.8 million gain recorded last year. This decline was driven by one-time charges related to the Aptean transaction and the Starboard acquisition.
- GAAP net loss from continuing operations was $2.8 million, or $0.08 per diluted share, compared to net income of $4.2 million, or $0.12 per diluted share, in Q3 FY24.
- Adjusted net earnings, excluding acquisition-related costs and stock-based compensation, were $4.7 million, or $0.14 per diluted share, compared to $6.3 million ($0.19 per diluted share) last year.
- EBITDA from continuing operations showed a loss of $2.4 million, contrasting with a positive $2.4 million in Q3 FY24.
- Adjusted EBITDA, factoring in acquisition-related costs and other adjustments, increased 7% to $4.3 million compared to $4.0 million in the previous year.
Year-to-Date Financial Performance
For the first nine months of fiscal year 2025, Logility’s financial results indicate continued growth in its subscription services while facing some revenue declines in other areas:
- Subscription fees totaled $44.1 million, reflecting a 7% increase compared to $41.2 million in the same period last year.
- Software license revenue increased to $1.0 million, up from $0.8 million in the prior year.
- Total revenue reached $76.5 million, compared to $77.1 million last year, a modest 1% decrease.
- Maintenance revenue declined 12% to $21.2 million from $24.0 million, largely due to the divestiture of the Transportation group and client transitions to the cloud.
- Professional services and other revenues dropped 8% to $10.2 million from $11.1 million in the prior year.
- Net earnings from continuing operations were $1.0 million, or $0.03 per fully diluted share, compared to $7.4 million ($0.22 per diluted share) in FY24.
- Adjusted net earnings stood at $9.2 million ($0.28 per share), compared to $13.3 million ($0.39 per share) in the previous fiscal year.
- EBITDA from continuing operations reached $2.9 million, down from $7.1 million in the previous year.
- Adjusted EBITDA improved by 10%, totaling $13.0 million compared to $11.8 million last year.
Financial Strength and Cash Position
Logility maintains a strong financial foundation, with cash and investments totaling approximately $79.3 million as of the end of the third quarter. Additionally, the company distributed approximately $3.7 million in shareholder dividends during the quarter, reinforcing its commitment to delivering value to investors despite ongoing acquisition-related activities.
Strategic Outlook and Market Positioning
As Logility moves toward finalizing its acquisition by Aptean, the company continues to emphasize its leadership in AI-driven supply chain planning. Its SaaS-based solutions are designed to enhance supply chain visibility, efficiency, and sustainability, helping businesses across industries navigate challenges in a dynamic global market.
The acquisition by Aptean is expected to provide Logility with additional resources to expand its AI capabilities, enhance product offerings, and accelerate growth. With over 500 clients in 80 countries, Logility remains committed to innovation and industry leadership, leveraging advanced analytics and machine learning to optimize supply chain operations.
About Logility
Logility is a recognized leader in AI-first supply chain management solutions, designed to help organizations transition from traditional analytics to predictive, AI-driven insights. The company’s platform integrates advanced machine learning, automation, and data intelligence to enable businesses to anticipate and adapt to market changes proactively.
Logility’s end-to-end supply chain solutions empower companies to:
- Reduce operational costs and inefficiencies
- Enhance demand planning and inventory management
- Improve supplier collaboration and transparency
- Optimize logistics and transportation networks
Headquartered in Atlanta, GA, Logility serves clients across multiple industries, including retail, manufacturing, healthcare, and consumer goods.
Non-GAAP Financial Measures
To provide a comprehensive view of its financial performance, Logility includes non-GAAP financial measures such as EBITDA, adjusted EBITDA, and adjusted net earnings. These measures exclude certain non-cash expenses, acquisition-related costs, and stock-based compensation to offer a clearer perspective on the company’s operational efficiency and profitability.
For a detailed reconciliation of these non-GAAP metrics to their respective GAAP counterparts, investors are encouraged to review the financial tables included in Logility’s upcoming SEC filings.
Conclusion
Logility’s third-quarter fiscal year 2025 results reflect a period of strategic transition, marked by steady subscription revenue growth and challenges related to acquisition-related expenses. The pending Aptean acquisition positions the company for long-term expansion, leveraging AI-driven supply chain innovations to enhance efficiency and value for its customers. With strong financial fundamentals and a clear vision for the future, Logility is well-prepared to navigate industry shifts and capitalize on emerging market opportunities.