Agilysys, Inc. (AGYS)
NASDAQ:AGYS
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Agilysys
(NASDAQ:AGYS)
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Rating:76Outperform
Price Target:
$89.00
▲(30.44% Upside)
Action:Reiterated
Date:05/20/26
Score is driven primarily by strong financial performance (cash generation, high gross margins, and low leverage) and a positive earnings outlook with margin expansion guidance. Offsetting factors are a mixed longer-term technical trend (still below 100/200-day averages) and a relatively expensive valuation (P/E ~40.6) with no dividend support.
Positive Factors
Recurring revenue strength
Sustained subscription growth (≥30% YoY) builds durable recurring revenue and visibility across multi-year contracts. High recurring mix supports predictable cashflows, higher customer lifetime value and cross-sell of modules, enabling scalable revenue growth and margin expansion over quarters.
Negative Factors
Rollout/timing risk (Marriott PMS)
Large, multi-year enterprise rollouts create material timing and revenue recognition risk. Delays or phased deployments defer margin realization and can compress near-term profitability, reducing visibility and making multi-quarter guidance sensitive to execution on complex integrations.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue strength
Sustained subscription growth (≥30% YoY) builds durable recurring revenue and visibility across multi-year contracts. High recurring mix supports predictable cashflows, higher customer lifetime value and cross-sell of modules, enabling scalable revenue growth and margin expansion over quarters.
Read all positive factors
Agilysys (AGYS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.33B
Dividend YieldN/A
Average Volume (3M)387.71K
Price to Earnings (P/E)62.6
Beta (1Y)0.62
Revenue Growth15.85%
EPS Growth63.44%
CountryUS
Employees1,900
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.39
Shares Outstanding28,166,630
10 Day Avg. Volume656,130
30 Day Avg. Volume387,714
Financial Highlights & Ratios
PEG Ratio0.79
Price to Book (P/B)6.11
Price to Sales (P/S)6.25
P/FCF Ratio29.28
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue6.98
Enterprise Value/Gross Profit11.29
Enterprise Value/Ebitda37.94
Forecast
1Y Price Target
$130.80Price Target Upside91.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)2.16
Revenue Forecast (FY)$367.79M
Agilysys Business Overview & Revenue Model
Company Description
Agilysys, Inc., together with its subsidiaries, operates as a developer and marketer of hardware and software products and services to the hospitality industry in North America, Europe, the Asia-Pacific, and India. It offers point of sale, propert...
How the Company Makes Money
Agilysys primarily makes money by selling and supporting hospitality software products and related services. Key revenue streams include (1) subscription/SaaS fees for cloud-delivered software (recurring revenue tied to customer usage/contract ter...
Agilysys Earnings Call Summary
Earnings Call Date:May 18, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Positive
The call highlights broad-based, multi-quarter and multi-product momentum with record sales, strong subscription and recurring revenue growth, margin expansion, improved cash generation and a clear AI-driven product roadmap. Management provided constructive FY2027 guidance (revenue $365M–$370M, subscription growth ≥30%, adjusted EBITDA to 24% with a high exit rate), while acknowledging short-term timing and rollout risks (notably the multi-year Marriott PMS rollout), flat one-time product revenue, and Q1 seasonality/one-time costs. Overall, positives (record results, strong trends, robust cash and margins, solid guidance and AI-enabled product launches) outweigh the manageable near-term execution and timing risks.Positive Updates
Record Quarterly and Annual Revenue
Q4 fiscal 2026 revenue hit a record $82.9M (17th consecutive record quarter). Full fiscal year 2026 revenue was $319.3M, up 15.9% year-over-year.
Negative Updates
Flat One-Time Product Revenue
Onetime product revenue (perpetual licenses and hardware resales) remained flat YoY at $41.2M for FY2026. Management frames this as a sign of SaaS transition, but it limits non-recurring revenue growth in the near term.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Quarterly and Annual Revenue
Q4 fiscal 2026 revenue hit a record $82.9M (17th consecutive record quarter). Full fiscal year 2026 revenue was $319.3M, up 15.9% year-over-year.
Read all positive updates
Company Guidance
Management guided fiscal 2027 revenue of $365–$370 million, with product revenue expected to remain flat at about $40M annually (~$10M/quarter), professional services growth of 5–10%, recurring revenue growth around 20% (with subscription revenue growth north of 30% — the third consecutive year of ≥30% subscription growth), and Q1 subscription growth expected near the Q4 exit rate of ~24% with acceleration through the year; adjusted EBITDA is expected to rise from 21.2% in FY26 to 24% for FY27 (Q1 profitability at 16–17% due to one‑time costs, exiting the year near ~30%), stock‑based compensation running ~5–7% of revenue, product development (ex‑SBC) falling to the high‑teens, and gross margin and operating leverage expected to expand (exit gross margin in the mid‑to‑high‑60% range), with free cash flow and adjusted EBITDA remaining comparable proxies after normalizing CapEx.Agilysys Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
86
Very Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 319.31M | 275.62M | 237.46M | 198.06M | 162.64M |
| Gross Profit | 197.50M | 171.99M | 144.26M | 120.82M | 101.53M |
| EBITDA | 58.60M | 35.16M | 25.95M | 19.43M | 10.39M |
| Net Income | 38.79M | 23.23M | 86.19M | 14.58M | 6.48M |
Balance Sheet | |||||
| Total Assets | 481.53M | 434.37M | 350.43M | 243.04M | 214.16M |
| Cash, Cash Equivalents and Short-Term Investments | 116.89M | 73.04M | 144.89M | 112.84M | 96.97M |
| Total Debt | 19.04M | 46.96M | 23.89M | 16.74M | 10.70M |
| Total Liabilities | 154.74M | 168.48M | 113.95M | 98.27M | 81.36M |
| Stockholders Equity | 326.79M | 265.89M | 236.48M | 144.77M | 132.80M |
Cash Flow | |||||
| Free Cash Flow | 68.15M | 52.34M | 40.06M | 27.23M | 27.28M |
| Operating Cash Flow | 70.00M | 55.13M | 48.19M | 34.46M | 28.48M |
| Investing Cash Flow | -1.85M | -148.57M | -7.60M | -6.87M | -25.68M |
| Financing Cash Flow | -24.47M | 21.93M | -8.56M | -11.09M | -4.90M |
Agilysys Technical Analysis
Positive
68.23
Price Trends
70.37
Positive
79.41
Positive
97.63
Negative
Market Momentum
3.79
Negative
72.67
Negative
59.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGYS, the sentiment is Positive. The current price of 68.23 is below the 20-day moving average (MA) of 73.73, below the 50-day MA of 70.37, and below the 200-day MA of 97.63, indicating a neutral trend. The MACD of 3.79 indicates Negative momentum. The RSI at 72.67 is Negative, neither overbought nor oversold. The STOCH value of 59.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AGYS.
Agilysys Risk Analysis
Agilysys disclosed 33 risk factors in its most recent earnings report. Agilysys reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Agilysys Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.33B | 62.59 | 12.72% | ― | 15.85% | 63.44% | |
68 Neutral | $1.40B | 9.90 | 179.00% | ― | -0.66% | ― | |
68 Neutral | $420.42M | -11.62 | -19.29% | ― | 12.27% | 37.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $1.59B | 65.72 | 7.70% | ― | 8.12% | -82.54% | |
50 Neutral | $507.80M | -0.16 | -171.94% | 8.12% | -3.15% | -6679.56% |
* Technology Sector Average
AGYS
Agilysys
86.56
-19.35
-18.27%
BLKB
Blackbaud
30.69
-31.54
-50.68%
BL
BlackLine
29.40
-26.53
-47.43%
SPT
Sprout Social
7.48
-14.35
-65.74%
ALIT
Alight
0.94
-4.33
-82.13%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.