Agilysys (AGYS) AI Stock Analysis

• Market Cap: $2.03B
• Dividend Yield: N/A
• Average Volume (3M): 406.33K
• Price to Earnings (P/E): 67.3
• Beta (1Y): 0.69
• Revenue Growth: 17.77%
• EPS Growth: -76.05%
• Country: US
• Employees: 1,900
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.42
• Shares Outstanding: 28,108,248
• 10 Day Avg. Volume: 359,512
• 30 Day Avg. Volume: 406,331
• PEG Ratio: -1.15
• Price to Book (P/B): 7.51
• Price to Sales (P/S): 7.24
• P/FCF Ratio: 38.13
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 6.38
• Enterprise Value/Gross Profit: 10.48
• Enterprise Value/Ebitda: 40.12
• 1Y Price Target: $138.00
• Price Target Upside: 91.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 1.65
• Revenue Forecast (FY): $316.69M

• Rating: 71 Outperform
• Price Target: $81.00 ▲(12.24% Upside)
• Action: Reiterated Date: 02/02/26
• Date: Action: Reiterated 02/02/26

The score is driven by strong fundamental quality (cash generation and low leverage) and a very constructive earnings call with raised guidance and improving profitability/cash. This is meaningfully offset by weak technicals (price far below major moving averages with bearish momentum) and a demanding valuation (high P/E with no dividend yield provided).

Positive Factors

Balance Sheet Strength

Very low leverage and a conservative balance sheet give Agilysys durable financial flexibility. Being effectively debt-light reduces refinancing and interest risks, supports investment in product modernization and rollouts (like Marriott), and provides a cushion to fund growth or M&A without stressing liquidity.

Strong Cash Generation

Consistent and growing free cash flow is a durable strength, enabling reinvestment in R&D, go-to-market, and implementation capacity without heavy external financing. High FCF conversion supports margin sustainability and funds the SaaS transition and integration of acquisitions over multiple quarters.

Recurring Revenue / SaaS Momentum

A growing SaaS and recurring base increases revenue predictability and customer lifetime value. Strong subscription bookings, ARR growth and cross-sell show product-market fit in hospitality software, supporting sustainable margins and lower churn risk as cloud-native deployments simplify implementations.

Negative Factors

Slowing Reported Revenue Growth

A marked deceleration in headline revenue growth reduces margin leverage and raises execution risk. If sustained, slower top-line gains make it harder to hit elevated adjusted-EBITDA targets and justify reinvestment cadence; growth volatility also magnifies sensitivity to large, lumpy hospitality deals.

Subscription Backlog Below Peak

Backlog below peak suggests near-term revenue visibility remains imperfect. Lower backlog increases the chance of quarter-to-quarter choppiness in recognized subscription revenue, which can delay margin expansion and make cash flow timing more variable during large rollouts or seasonally weak periods.

Professional Services Margin Pressure

Lower services margins and utilization drag overall gross margin and can persist while new hires ramp. Because services are integral to implementations and cross-sell, sustained mid-20% margins compress company-level profitability and can weaken cash conversion if project timing or utilization remains uneven.

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, property management systems, inventory and procurement, payments, reservations management, and seat solutions to enhance guest experience. The company also provides technical software support, maintenance, and subscription services; and professional services. It offers its solutions for gaming, hotels, resorts and cruise, corporate foodservice management, restaurants, universities, stadium, and healthcare. The company was formerly known as Pioneer-Standard Electronics, Inc. and changed its name to Agilysys, Inc. in 2003. Agilysys, Inc. was founded in 1932 and is headquartered in Alpharetta, Georgia.

How the Company Makes Money

Agilysys generates revenue primarily through software sales, subscription fees, and service contracts related to its hospitality management software solutions. The company employs a recurring revenue model, particularly through SaaS (Software as a Service) offerings, which provide ongoing monthly or annual subscription revenues. Key revenue streams include licensing fees for on-premise solutions, subscription fees for cloud-based services, and maintenance and support services for existing clients. Additionally, Agilysys benefits from partnerships with various hospitality organizations and technology providers, which enhance its market reach and allow for bundled services, further driving revenue growth.

Agilysys Financial Statement Overview

Summary

Strong balance sheet with very low leverage and improving equity base, plus solid and growing free cash flow (TTM FCF ~$59.2M). Offsetting factors are the sharp slowdown in reported annual revenue growth in FY2025/TTM and signs that FY2024 profitability was unusually elevated and potentially non-recurring.

Income Statement

AGYS shows a solid multi-year revenue uptrend (annual revenue rising from ~$137M in 2021 to $275.6M in FY2025; TTM (Trailing-Twelve-Months) at $310.6M). Profitability has structurally improved versus the 2021 loss, with healthy gross margins consistently ~61–65% and TTM operating profitability around the mid-teens on an EBITDA basis. Key watch-outs: revenue growth has slowed materially (from ~18–22% in FY2022–FY2024 to ~0.2% in FY2025 annual and ~3.6% in TTM), and FY2024 net margin was unusually high versus other periods, indicating earnings volatility/non-recurring drivers.

Balance Sheet

The balance sheet looks conservative with low leverage and a growing equity base. Debt-to-equity is modest across periods and is particularly low in TTM (Trailing-Twelve-Months) (~0.07), providing flexibility and limiting financial risk. Return on equity is positive in the most recent periods (high-single-digits in FY2025 and TTM), but it is not consistently strong and was distorted by an outsized FY2024 profit year, which reduces confidence in the sustainability of headline returns.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow are positive and growing (TTM (Trailing-Twelve-Months) free cash flow ~$59.2M, up ~5.3% vs. the prior period provided), and free cash flow tracks closely with reported earnings (free cash flow to net income near ~0.95–0.96 in FY2025/TTM), supporting earnings quality. The main weakness is that cash conversion is not consistently strong relative to reported operating performance (operating cash flow coverage ratio remains below 1.0 across periods), implying working-capital or timing headwinds that can create quarter-to-quarter variability.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	310.64M	275.62M	237.46M	198.06M	162.64M	137.18M
Gross Profit	189.13M	171.99M	144.26M	120.82M	101.53M	89.38M
EBITDA	49.41M	35.16M	25.95M	19.43M	10.39M	-16.40M
Net Income	30.42M	23.23M	86.19M	14.58M	6.48M	-21.00M
Balance Sheet
Total Assets	475.18M	434.37M	350.43M	243.04M	214.16M	189.87M
Cash, Cash Equivalents and Short-Term Investments	81.45M	73.04M	144.89M	112.84M	96.97M	99.18M
Total Debt	35.19M	46.96M	23.89M	16.74M	10.70M	13.63M
Total Liabilities	162.06M	168.48M	113.95M	98.27M	81.36M	74.54M
Stockholders Equity	313.12M	265.89M	236.48M	144.77M	132.80M	115.33M
Cash Flow
Free Cash Flow	59.19M	52.34M	40.06M	27.23M	27.28M	27.02M
Operating Cash Flow	61.31M	55.13M	48.19M	34.46M	28.48M	28.41M
Investing Cash Flow	-2.94M	-148.57M	-7.60M	-6.87M	-25.68M	-1.39M
Financing Cash Flow	-37.90M	21.93M	-8.56M	-11.09M	-4.90M	25.32M

Agilysys Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGYS, the sentiment is Negative. The current price of 72.17 is below the 20-day moving average (MA) of 81.45, below the 50-day MA of 101.66, and below the 200-day MA of 109.90, indicating a bearish trend. The MACD of -8.28 indicates Positive momentum. The RSI at 28.15 is Positive, neither overbought nor oversold. The STOCH value of 11.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AGYS.

Agilysys Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGYS	71 Outperform	$2.03B	67.32	10.68%	―	17.77%	-76.05%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	59 Neutral	$381.90M	-8.72	-26.69%	―	13.09%	32.34%
BLKB	56 Neutral	$2.23B	20.39	-78.53%	―	-1.17%	-597.89%
BL	53 Neutral	$2.10B	91.23	6.29%	―	7.36%	-40.62%
ALIT	46 Neutral	$470.20M	-0.15	-114.93%	8.12%	-12.37%	-754.18%

Agilysys Corporate Events

Agilysys Highlights Strong Q3 FY26 Growth and Outlook

In an investor presentation for Q3 fiscal year 2026, Agilysys reported trailing twelve-month results through December 31, 2025 showing $310.6 million in revenue, $191.6 million in gross profit and $61.0 million in adjusted EBITDA, with recurring revenue comprising 64% of total revenue and subscription revenue making up 66% of recurring revenue. The company highlighted strong subscription momentum with 36% year-over-year subscription revenue growth, 29% overall revenue growth, a 20% adjusted EBITDA margin, and 74 new customers added over the period, and it raised its fiscal 2026 annual revenue guidance in October 2025 from a range of $308–$312 million to $315–$318 million, as well as increasing its Q1 FY26 subscription growth outlook, underscoring confidence in its expanding hospitality software footprint and solid balance sheet position.

The most recent analyst rating on (AGYS) stock is a Buy with a $107.00 price target. To see the full list of analyst forecasts on Agilysys stock, see the AGYS Stock Forecast page.

Agilysys Raises Fiscal Year 2026 Revenue Guidance

Agilysys has raised its fiscal year 2026 revenue guidance, projecting annual revenue between $315 million and $318 million, with a 20% adjusted EBITDA margin. The company has experienced significant growth, with a 29% year-over-year revenue increase and a 41% growth in subscription revenue. This positive outlook reflects Agilysys’s strategic focus on hospitality solutions and its ability to maintain strong sales levels and integrate acquisitions effectively.

The most recent analyst rating on (AGYS) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on Agilysys stock, see the AGYS Stock Forecast page.