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Agilysys
(NASDAQ:AGYS)
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Rating:73Outperform
Price Target:
$126.00
▲(84.67% Upside)
Action:Reiterated
Date:07/08/26
AGYS scores well primarily on strong financial performance (scaling revenue, solid margins, rising free cash flow, and low leverage) and a supportive earnings outlook with guidance for continued subscription growth and margin expansion. The overall score is held back by a very high P/E valuation and technically overbought momentum signals that raise near-term pullback risk.
Positive Factors
Recurring revenue growth
Sustained high subscription and recurring revenue growth increases revenue visibility and predictability, shifting the mix toward durable SaaS economics. Consistent subscription expansion (30%+) supports higher lifetime customer value and steadier cashflows, enabling reinvestment and scaling over multiple years.
Negative Factors
Multi-year rollout timing risk
Large enterprise rollouts drive meaningful revenue but introduce multi-quarter timing and execution uncertainty. Delays or slower-than-expected deployments compress near-term margin realization and defer recurring revenue recognition, making forecasted growth sensitive to implementation cadence over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue growth
Sustained high subscription and recurring revenue growth increases revenue visibility and predictability, shifting the mix toward durable SaaS economics. Consistent subscription expansion (30%+) supports higher lifetime customer value and steadier cashflows, enabling reinvestment and scaling over multiple years.
Read all positive factors
Agilysys Key Performance Indicators (KPIs)
Agilysys (AGYS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.07B
Dividend YieldN/A
Average Volume (3M)373.74K
Price to Earnings (P/E)78.4
Beta (1Y)0.54
Revenue Growth15.85%
EPS Growth63.44%
CountryUS
Employees2,200
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.39
Shares Outstanding28,166,630
10 Day Avg. Volume426,926
30 Day Avg. Volume373,738
Financial Highlights & Ratios
PEG Ratio0.78
Price to Book (P/B)6.11
Price to Sales (P/S)6.25
P/FCF Ratio29.28
Enterprise Value/Market Cap0.77
Enterprise Value/Revenue7.43
Enterprise Value/Gross Profit12.01
Enterprise Value/Ebitda40.35
Forecast
1Y Price Target
$127.33Price Target Upside86.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)2.45
Revenue Forecast (FY)$367.78M
Agilysys Business Overview & Revenue Model
Company Description
Agilysys, Inc. operates as a developer and marketer of software-enabled solutions and services to the hospitality industry in North America, Europe, the Asia-Pacific, and India. The company offers software solutions fully integrated with third par...
How the Company Makes Money
Agilysys makes money primarily by licensing and subscribing customers to its hospitality software platforms and by providing services tied to deploying and supporting those systems. Key revenue streams include: (1) Subscription/SaaS and maintenanc...
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
85.92
Positive
78.41
Positive
95.97
Positive
Market Momentum
7.13
Negative
68.97
Neutral
65.41
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 98.58, below the 50-day MA of 85.92, and below the 200-day MA of 95.97, indicating a bullish trend. The MACD of 7.13 indicates Negative momentum. The RSI at 68.97 is Neutral, neither overbought nor oversold. The STOCH value of 65.41 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 34 risk factors in its most recent earnings report. Agilysys reported the most risks in the "Tech & Innovation" 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.07B | 78.35 | 12.72% | ― | 15.85% | 63.44% | |
69 Neutral | $503.68M | ― | -19.29% | ― | 12.27% | 37.41% | |
63 Neutral | $1.34B | 9.87 | 179.00% | ― | -0.66% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $1.70B | 66.30 | 7.70% | ― | 8.12% | -82.54% | |
58 Neutral | $495.07M | -0.17 | -171.94% | 8.12% | -3.15% | -6679.57% |
* Technology Sector Average
AGYS
Agilysys
108.98
-4.94
-4.34%
BLKB
Blackbaud
29.59
-34.04
-53.50%
BL
BlackLine
29.13
-24.52
-45.70%
SPT
Sprout Social
8.28
-10.57
-56.07%
ALIT
Alight
19.62
-90.86
-82.24%
Agilysys Corporate Events
Executive/Board Changes
Agilysys Extends CEO Contract with New Incentive Plan
Positive
Jun 22, 2026
On June 18, 2026, Agilysys, Inc. signed a new three-year employment agreement with Chief Executive Officer and President Ramesh Srinivasan, under which he will continue leading the company with an automatically renewing term. His compensation pack...
Business Operations and StrategyFinancial Disclosures
Agilysys Details AI-Driven Hospitality Strategy and Growth Outlook
Positive
Jun 3, 2026
Agilysys released an investor presentation for its fourth quarter and full fiscal year 2026, outlining its hospitality-only strategy, global footprint and AI-first product roadmap, as well as detailed operating metrics for the twelve months ended ...
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.