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Agilysys (AGYS)
NASDAQ:AGYS
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Agilysys (AGYS) AI Stock Analysis

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AGYS

Agilysys

(NASDAQ:AGYS)

Rating:81Outperform
Price Target:
$130.00
▲(14.55%Upside)
Agilysys's overall stock score reflects solid financial health, strong earnings growth, and strategic corporate actions. The high valuation presents a risk, but the company's strong market position and growth trajectory provide a compelling investment case.
Positive Factors
Market Position
Agilysys is exceptionally well positioned to leverage its best-in-class product catalog to capture market share, especially as it builds its reputation from successfully serving marquee customers, like Marriott.
Sales Momentum
Strong sales momentum through the quarter in both the PMS and POS segments and a record backlog exiting 1Q.
Subscription Revenue
AGYS' results were solid, spurred mainly by stronger subscription growth and professional services revenue.
Negative Factors
EBITDA Performance
Adjusted EBITDA was roughly $2 million below estimate and $1.5 million below consensus.
Product Revenue
Product revenue was below expectations, only increasing by 1%.
Revenue Guidance
Management's guidance for fiscal 2026 was slightly below consensus on revenue, reflecting cautious future expectations.

Agilysys (AGYS) vs. SPDR S&P 500 ETF (SPY)

Agilysys Business Overview & Revenue Model

Company DescriptionAgilysys, Inc. (AGYS) is a comprehensive provider of hospitality software solutions and services. The company specializes in delivering innovative technology to enhance guest experiences and streamline operations for the hospitality industry, including hotels, resorts, and restaurants. Agilysys offers a wide range of products, including point-of-sale systems, property management systems, and inventory and procurement solutions, catering to the needs of various hospitality sectors.
How the Company Makes MoneyAgilysys generates revenue through the sale of software solutions and services tailored to the hospitality industry. The company's key revenue streams include licensing fees for their software products, subscription fees for cloud-based solutions, and service fees for installation, maintenance, and support. Agilysys also earns recurring revenue from managed services and software upgrades. Strategic partnerships with other technology providers and hospitality businesses contribute to Agilysys's earnings by expanding its market reach and enhancing its product offerings. Additionally, the company's focus on ongoing innovation and customer-centric solutions helps maintain a competitive edge, driving sustained revenue growth.

Agilysys Earnings Call Summary

Earnings Call Date:Jul 21, 2025
(Q1-2026)
|
% Change Since: -2.95%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call showcased strong sales and revenue growth, particularly in subscription revenue and international sales expansion. Despite challenges in one-time product revenue and cash flow, the company's strategic investments in AI and sales capacity suggest a positive trajectory.
Q1-2026 Updates
Positive Updates
Record Sales and Revenue Growth
Fiscal 2026 Q1 sales were 24% higher than the comparable prior year period, marking the second best quarter on record. Overall revenue was $76.7 million, a 21% increase from the prior year quarter.
Subscription Revenue Surge
Q1 fiscal 2026 was the best ever quarter for subscription software sales, 79% higher than the prior year period. Subscription revenue grew 44.3% and accounted for 65.6% of total recurring revenue.
Expansion in Sales Capacity
Sales capacity increased by 45% year-over-year, enhancing territory coverage and opening more doors for the company.
International and Vertical Sales Success
International sales showed good momentum, with casino gaming and food service management verticals achieving record sales levels.
AI Integration into Products
AI-based product enhancements are being added, including personalized upselling, AI-assisted concierge services, and AI-driven pricing decisions.
Negative Updates
Low One-Time Product Revenue
One-time product revenue was below expectations, marking the lowest quarter in about four years for perpetual software licenses.
Cash Flow and Profitability Challenges
Free cash flow in the quarter was a loss of $5 million compared to an increase in the prior year. Adjusted EBITDA was lower than annual expectations due to once-a-year cost items.
Company Guidance
During Agilysys' fiscal 2026 first quarter conference call, the company reported a notable 24% increase in sales compared to the same period the previous year, marking it as their best Q1 sales period on record. This growth was driven by a 34% rise in recurring fee bookings and significant achievements across various sales verticals, including a 15% increase in the casino gaming sector and a 20% increase in professional services sales compared to the prior year. Subscription software sales reached a new high, growing 25% over the previous quarter and 79% year-over-year. The company also reported a 44% year-over-year increase in subscription revenue, contributing to a record total revenue of $76.7 million for the quarter. Despite a lower-than-expected EBITDA due to one-time costs, Agilysys maintained its annual revenue guidance of $308 million to $312 million and adjusted EBITDA at 20% of revenue for fiscal 2026.

Agilysys Financial Statement Overview

Summary
Agilysys demonstrates strong financial health with consistent revenue growth, improved profitability, and robust cash flow. The company maintains a low leverage profile and stable financial position, making it a solid candidate for future growth.
Income Statement
85
Very Positive
Agilysys has shown strong revenue growth over the years, with a positive trajectory from $137.2M in 2021 to $275.6M in 2025. Gross profit margin improved consistently, reaching 62.4% in 2025. The net profit margin also improved significantly, recovering from negative figures in 2021 to 8.4% in 2025. The company has achieved positive EBIT and EBITDA margins, indicating enhanced operational efficiency.
Balance Sheet
78
Positive
The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.18 in 2025, suggesting low leverage. Return on Equity (ROE) was 8.7% in 2025, reflecting a decent return on shareholders' investments. The equity ratio remained stable at 61.2%, indicating strong financial stability with a significant proportion of assets financed by equity.
Cash Flow
80
Positive
Agilysys has demonstrated a robust increase in operating cash flow, with a significant free cash flow growth rate. The operating cash flow to net income ratio was 2.37 in 2025, suggesting efficient cash generation relative to net income. The free cash flow to net income ratio was 2.25, indicating substantial free cash flow relative to earnings.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue275.62M237.46M198.06M162.64M137.18M
Gross Profit171.99M144.26M120.82M101.53M89.38M
EBITDA35.16M25.95M19.28M10.39M-16.40M
Net Income23.23M86.19M14.58M6.48M-21.00M
Balance Sheet
Total Assets434.37M350.43M243.04M214.16M189.87M
Cash, Cash Equivalents and Short-Term Investments73.04M144.89M112.84M96.97M99.18M
Total Debt46.96M23.89M16.74M10.70M13.63M
Total Liabilities168.48M113.95M98.27M81.36M74.54M
Stockholders Equity265.89M236.48M144.77M132.80M115.33M
Cash Flow
Free Cash Flow52.34M40.06M27.23M27.28M27.02M
Operating Cash Flow55.13M48.19M34.46M28.48M28.41M
Investing Cash Flow-148.57M-7.60M-6.87M-25.68M-1.39M
Financing Cash Flow21.93M-8.56M-11.09M-4.90M25.32M

Agilysys Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price113.49
Price Trends
50DMA
108.71
Positive
100DMA
91.43
Positive
200DMA
102.75
Positive
Market Momentum
MACD
1.59
Positive
RSI
51.59
Neutral
STOCH
63.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGYS, the sentiment is Neutral. The current price of 113.49 is below the 20-day moving average (MA) of 114.86, above the 50-day MA of 108.71, and above the 200-day MA of 102.75, indicating a neutral trend. The MACD of 1.59 indicates Positive momentum. The RSI at 51.59 is Neutral, neither overbought nor oversold. The STOCH value of 63.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$3.16B228.785.21%17.91%-86.60%
72
Outperform
$3.52B26.0344.83%8.93%102.77%
64
Neutral
$1.12B-36.95%17.79%16.49%
63
Neutral
$34.70B4.89-11.39%1.66%5.53%-19.00%
62
Neutral
$3.08B-0.82%2.11%-26.04%85.84%
54
Neutral
$3.17B78.53-101.31%2.07%-1519.89%
47
Neutral
$290.64M50.30-24.43%-45.80%-13.09%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AGYS
Agilysys
113.49
2.79
2.52%
BLKB
Blackbaud
65.25
-14.73
-18.42%
BL
BlackLine
56.51
8.69
18.17%
SPT
Sprout Social
19.07
-19.85
-51.00%
OCFT
OneConnect Financial Technology
7.45
5.80
351.52%
ALIT
Alight
5.69
-1.82
-24.23%

Agilysys Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Agilysys Reports Strong Revenue Growth and Expansion
Positive
Jun 3, 2025

Agilysys recently announced its strategic acquisition of Book4Time, a market leader in spa software solutions, for $150 million in an all-cash transaction that closed in August 2024. This acquisition expands Agilysys’s customer base by over 30% and strengthens its product penetration among large global brands, providing a strategic advantage in competitive ecosystem deals. The company also reported strong financial performance with a projected annual revenue between $308M and $312M, a 25% year-over-year growth, and a focus on expanding its property management solutions to connect more rooms in the coming years.

The most recent analyst rating on (AGYS) stock is a Buy with a $120.00 price target. To see the full list of analyst forecasts on Agilysys stock, see the AGYS Stock Forecast page.

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.Date of analysis: Jul 24, 2025