Download PDF

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on AGYS

Agilysys' recent performance was driven by strong Q2 fiscal 2026 results, with subscription revenue growth of 33% year-over-year, contributing to a 16% increase in overall revenue. The company's earnings per share of $0.40 exceeded estimates, and its 15th consecutive record revenue quarter reached $79.3 million. A Zacks upgrade to a Buy rating reflects growing optimism about earnings prospects. Additionally, Agilysys received the 2025 Gaming & Leisure Platinum Award for its booking technology, showcasing innovation. Institutional investors, such as the State of New Jersey Common Pension Fund D, have also taken notice, purchasing shares.

1.c. Company Highlights

2. Agilysys Delivers Record Revenue and Subscription Growth

Agilysys reported a strong Q2 fiscal 2026 with record revenue of $79.3 million, a 16.1% increase from the prior year period. The company's gross profit was $49 million, with a gross profit margin of 61.7%, slightly down due to one-time revenue and ramping up the newly hired professional services team. Net income was $11.7 million, with a gain per diluted share of $0.41, beating estimates of $0.39. Adjusted EBITDA was $16.4 million, compared to $12.2 million in the year-ago quarter. The actual EPS came out at $0.4124.

Publication Date: Oct -28

📋 Highlights
  • Record Revenue & Growth: Agilysys achieved $79.3M in Q2 revenue, a 16.1% YoY increase, with recurring revenue hitting $51M (23% YoY growth).
  • Subscription Dominance: Subscription revenue now constitutes 65.5% of total recurring revenue, up from 60.5% in Q2 2025, growing 33.1% YoY to record levels.
  • Guidance Raised: Full-year revenue guidance lifted to $315–318M, with subscription revenue growth expectations raised to 29% (from 27%), excluding Marriott impact.
  • Backlog & Booking Surge: Subscription backlog grew 30% over FY25 exit rates, while Q2 bookings rose 41% YoY, with YTD bookings up 59%.
  • AI-Driven Efficiency: AI tools are enhancing competitive advantage and product development efficiency, supporting a 49% Q2 backlog increase and 11.8% professional services revenue growth.

Revenue Growth Driven by Subscription Sales

Recurring revenue grew 23% year-over-year and 4.8% sequentially to a record $51 million, driven by subscription revenue growth of 33.1%. Subscription revenue now constitutes 65.5% of total recurring revenue, up from 60.5% in Q2 last year. The company's sales momentum remains excellent, with Q2 sales being the best July-September period in its history. The average number of products per deal was 7, a new high for the company.

Strong Customer Acquisition and Retention

In Q2, the company added 18 new customers, all with subscription-based sales agreements, and 87 new properties from existing customers. Subscription bookings were up 41% over the prior fiscal year second quarter, and FY '26 year-to-date subscription bookings are up 59% over the prior year. The company's product backlog at the end of Q2 was 49% higher than at the end of Q1 and 74% of previous record levels.

Valuation and Outlook

With a P/E Ratio of 131.81 and an EV/EBITDA of 78.02, the market is pricing in high growth expectations. The company's ROE is 8.84%, and ROIC is 6.79%. Agilysys raised its full-year revenue guidance to $315 million to $318 million and expects full-year subscription revenue growth to be 29%. Analysts estimate next year's revenue growth at 13.9%. The company reiterated its midterm organic subscription revenue growth outlook of over 25%.

Operational Efficiency and Competitive Advantage

The company is seeing returns from its efficiency initiatives and expects bigger efficiency gains to come in the second half of this fiscal year and next fiscal year. AI tools are helping the company increase its competitive advantage gap and improve product development efficiencies. The company believes the Marriott rollout will be margin accretive, especially over a couple of quarters or an annual basis.

3. NewsRoom

Card image cap

Agilysys InfoGenesis® Point-of-Sale (POS) Platform Approved by IHG Hotels & Resorts Across Its Portfolio

Dec -02

Source: businesswire.com

Card image cap

Advantage Alpha Capital Partners LP Sells 48,023 Shares of Agilysys, Inc. $AGYS

Nov -28

Source: defenseworld.net

Card image cap

Financial Comparison: TruGolf (NASDAQ:TRUG) and Agilysys (NASDAQ:AGYS)

Nov -25

Source: defenseworld.net

Card image cap

Is Agilysys (AGYS) a Solid Growth Stock? 3 Reasons to Think "Yes"

Nov -24

Source: zacks.com

Card image cap

Agilysys Book4Time Wins 2025 American Spa Professional's Choice Award for Favorite Spa Software Technology

Nov -24

Source: businesswire.com

Card image cap

Granite Sells $12 Million of Agilysys After Volatile Year for the Hospitality Tech Stock

Nov -12

Source: fool.com

Card image cap

Best Momentum Stock to Buy for Oct. 31st

Oct -31

Source: zacks.com

Card image cap

Agilysys (AGYS) Upgraded to Buy: What Does It Mean for the Stock?

Oct -30

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.61%)

6. Segments

Subscription and Maintenance

Expected Growth: 9.27%

Agilysys' Subscription and Maintenance segment growth of 9.27% is driven by increasing adoption of cloud-based hospitality solutions, expansion of existing customer relationships, and strategic partnerships. Additionally, the company's focus on innovation, customer satisfaction, and retention has led to a rise in recurring revenue streams, contributing to the segment's growth.

Software with Third Party Hardware and Operating Systems

Expected Growth: 10.27%

Agilysys' software growth is driven by increasing adoption of its hospitality-focused solutions, strategic partnerships, and expanding presence in the gaming and resort industries. The company's ability to integrate with third-party hardware and operating systems enhances its offerings, contributing to the 10.27% growth rate.

Professional Services

Expected Growth: 9.9%

Agilysys' Professional Services segment growth of 9.9% is driven by increasing demand for hospitality technology solutions, strategic partnerships, and expansion into new markets. The company's focus on delivering innovative, cloud-based solutions and exceptional customer service has led to higher adoption rates and retention of existing clients, resulting in sustained revenue growth.

7. Detailed Products

InfoGenesis

A comprehensive point-of-sale (POS) system designed for hospitality and foodservice industries, offering features such as order management, inventory control, and payment processing.

LMS (Learning Management System)

A cloud-based learning management system that provides online training and development solutions for employees in the hospitality industry.

rGuest Buy

A self-service kiosk and online ordering solution for restaurants, cafes, and other foodservice establishments.

rGuest Pay

A payment gateway and security solution that provides secure payment processing and tokenization for hospitality and foodservice industries.

rGuest Stay

A property management system (PMS) designed for hotels, resorts, and other hospitality properties, offering features such as front desk management, housekeeping, and guest management.

Eatec

A back-office system for inventory management, procurement, and production management in the hospitality and foodservice industries.

8. Agilysys, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Agilysys, Inc. operates in a niche market, providing hospitality software solutions. While there are substitutes available, they are not as comprehensive as Agilysys' offerings, reducing the threat of substitutes.

Bargaining Power Of Customers

Agilysys, Inc. has a diverse customer base, including large hotel chains and independent properties. While customers have some bargaining power, Agilysys' customized solutions and strong relationships reduce their bargaining power.

Bargaining Power Of Suppliers

Agilysys, Inc. has a diversified supply chain, reducing dependence on individual suppliers. The company's strong relationships with suppliers and its ability to negotiate prices also reduce the bargaining power of suppliers.

Threat Of New Entrants

The hospitality software market has high barriers to entry, including significant development costs and the need for industry expertise. This reduces the threat of new entrants and allows Agilysys, Inc. to maintain its market position.

Intensity Of Rivalry

The hospitality software market is competitive, with several established players. However, Agilysys, Inc.'s strong brand recognition, comprehensive solutions, and customer loyalty programs help the company maintain its market share and reduce the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.18%
Debt Cost 3.95%
Equity Weight 90.82%
Equity Cost 7.37%
WACC 7.05%
Leverage 10.10%

11. Quality Control: Agilysys, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Aspen Technology

A-Score: 4.5/10

Value: 3.2

Growth: 5.2

Quality: 5.6

Yield: 0.0

Momentum: 7.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Tyler Technologies

A-Score: 4.4/10

Value: 0.7

Growth: 7.2

Quality: 7.6

Yield: 0.0

Momentum: 2.5

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Elastic

A-Score: 4.2/10

Value: 2.5

Growth: 8.0

Quality: 4.9

Yield: 0.0

Momentum: 6.0

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
Progress Software

A-Score: 4.2/10

Value: 4.4

Growth: 6.4

Quality: 6.0

Yield: 1.0

Momentum: 1.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Manhattan Associates

A-Score: 4.0/10

Value: 0.6

Growth: 7.9

Quality: 8.6

Yield: 0.0

Momentum: 1.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Agilysys

A-Score: 3.5/10

Value: 0.0

Growth: 7.9

Quality: 7.5

Yield: 0.0

Momentum: 2.5

Volatility: 3.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

126.96$

Current Price

126.97$

Potential

-0.00%

Expected Cash-Flows