Agilysys (AGYS)
NASDAQ:AGYS
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Agilysys
(NASDAQ:AGYS)
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Rating:71Outperform
Price Target:
$79.00
▲(10.01% Upside)
Action:ReiteratedDate: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
Recurring / subscription revenue growth
A rising mix of recurring subscription revenue and sustained double-digit subscription growth materially improves revenue visibility and predictability. Higher recurring share reduces cyclical hotel spend sensitivity, supports higher gross margins over time, and amplifies cross-sell/AAR leverage as installed base expands.
Negative Factors
Slowing headline revenue growth
A marked deceleration in top-line growth reduces leverage on fixed costs and limits sustainable margin expansion. If durable, slower revenue makes it harder to fund R&D and services scale organically, increases reliance on cross-sell/upsell or acquisitions to meet investor growth expectations.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring / subscription revenue growth
A rising mix of recurring subscription revenue and sustained double-digit subscription growth materially improves revenue visibility and predictability. Higher recurring share reduces cyclical hotel spend sensitivity, supports higher gross margins over time, and amplifies cross-sell/AAR leverage as installed base expands.
Read all positive factors
Agilysys (AGYS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.02B
Dividend YieldN/A
Average Volume (3M)338.44K
Price to Earnings (P/E)84.0
Beta (1Y)0.66
Revenue Growth17.77%
EPS Growth-76.05%
CountryUS
Employees1,900
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.42
Shares Outstanding28,108,248
10 Day Avg. Volume307,627
30 Day Avg. Volume338,440
Financial Highlights & Ratios
PEG Ratio-1.15
Price to Book (P/B)7.51
Price to Sales (P/S)7.24
P/FCF Ratio38.13
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue6.40
Enterprise Value/Gross Profit10.51
Enterprise Value/Ebitda40.24
Forecast
1Y Price Target
$138.00Price Target Upside92.17% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)1.65
Revenue Forecast (FY)$316.69M
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:Jan 26, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call conveyed strong positive momentum: record quarterly revenue, robust recurring and subscription growth, raised full-year revenue guidance, improving implementation efficiencies, expanding customer wins and cross-sell, accelerating AI-driven product and implementation benefits, and improving profitability and cash position. Headwinds mentioned were moderate and mostly transitory — a brief casino/gaming slowdown in Oct–Nov (recovered in December), international quarter-to-quarter variability, slight gross margin compression due to mix and ramping services hires, professional services utilization seasonality, and a subscription backlog below its all-time peak. Overall, the positives (record results, guidance raise, margin and cash improvements, strong subscription traction and strategic wins including Marriott pilot progress) materially outweigh the limited operational and seasonality-related lowlights.Positive Updates
Record Quarterly Revenue
Q3 fiscal 2026 revenue was a record $80.4 million, a 15.6% increase year-over-year and the 16th consecutive record revenue quarter.
Negative Updates
Gaming/Casino Sales Slowdown in Oct–Nov
Casino gaming vertical experienced a relative sales slowdown in October and November that pulled down sales in those months; activity recovered in December but some deals were postponed (not lost) and catch-up remains in coming months.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly Revenue
Q3 fiscal 2026 revenue was a record $80.4 million, a 15.6% increase year-over-year and the 16th consecutive record revenue quarter.
Read all positive updates
Company Guidance
Management raised full‑year FY26 revenue guidance to $318.0 million (top end of the $315–$318M range) while reaffirming subscription revenue growth guidance of 29% year‑over‑year (ex‑Marriott) and an adjusted EBITDA target of 20% of revenue; year‑to‑date revenue is $236.4M (+17.4% YTD) with Q3 revenue a record $80.4M (+15.6% YoY), Q3 recurring revenue $52.0M (+17.2%), Q3 subscription revenue $34.9M (+23.1%), subscription bookings up 37% YTD and subscription backlog ~88% of its all‑time high. Management expects Q4 professional services to return to roughly $18M (Q3 services were $17.7M, +22% YoY), noted product revenue of $10.7M and product backlog at ~85% of the prior quarter exit (nearly double last year’s Q3), combined backlog (ex‑Marriott) at ~90% of record levels, ARR installed in Q3 +40% YoY, subscription run‑rate doubled in 2.5 years, adjusted EBITDA through three quarters at 19.5% of revenue trending just north of 20%, free cash flow in Q3 $22.7M, cash & marketable securities $81.5M, and the company is debt‑free after a $24M revolver paydown.Agilysys Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
87
Very Positive
Cash Flow
82
Very Positive
| 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
Negative
71.81
Price Trends
83.76
Negative
103.47
Negative
107.38
Negative
Market Momentum
-3.64
Negative
40.94
Neutral
66.31
Neutral
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 71.81 is below the 20-day moving average (MA) of 72.74, below the 50-day MA of 83.76, and below the 200-day MA of 107.38, indicating a bearish trend. The MACD of -3.64 indicates Negative momentum. The RSI at 40.94 is Neutral, neither overbought nor oversold. The STOCH value of 66.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.02B | 83.96 | 10.50% | ― | 17.77% | -76.05% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $332.20M | -15.56 | -22.88% | ― | 13.09% | 32.34% | |
56 Neutral | $1.81B | 26.26 | 146.36% | ― | -1.17% | -597.89% | |
54 Neutral | $2.21B | 168.71 | 6.57% | ― | 7.36% | -40.62% | |
50 Neutral | $287.78M | ― | -119.20% | 8.12% | -12.37% | -754.18% |
* Technology Sector Average
AGYS
Agilysys
72.37
-3.25
-4.30%
BLKB
Blackbaud
39.36
-22.97
-36.85%
BL
BlackLine
37.07
-13.12
-26.14%
SPT
Sprout Social
5.57
-17.94
-76.31%
ALIT
Alight
0.54
-5.46
-91.03%
Agilysys Corporate Events
Business Operations and StrategyFinancial Disclosures
Agilysys Highlights Strong Q3 FY26 Growth and Outlook
Positive
Feb 2, 2026
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 r...
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.