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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.

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1.b. Last Insights on AGYS

Breaking News: Agilysys Inc has announced that Winford Resort & Casino Manila Philippines has deployed its InfoGenesis POS to centralize food and beverage operations across 11 venues. The solution will integrate in real time with their Total Rewards System. This deployment aims to elevate operations and service at the 128-room integrated resort. There is no recent earnings release available. Analysts at Northland Securities recommend a buy with a price target, Wedbush has a neutral rating or hold.

1.c. Company Highlights

2. Agilysys' Q3 FY2026 Earnings: Strong Revenue Growth and Improving Profitability

Agilysys reported a record $80.4 million in revenue for Q3 FY2026, representing a 15.6% increase from the prior year period. The company's recurring revenue grew 17.2% driven by strong subscription revenue growth, while one-time revenue was up 12.7%. The earnings per share (EPS) came in at $0.42, slightly below analyst estimates of $0.46. The company's year-to-date revenue stood at $236.4 million, up 17.4% over the prior year-to-date period.

Publication Date: Feb -14

📋 Highlights
  • Q3 Revenue Record:: Fiscal 2026 Q3 revenue hit $80.4M, up 15.6% YoY, driven by 17.2% recurring revenue growth.
  • Subscription Growth:: Year-to-date subscription sales surged 37% YoY, with first three quarters at 95% of prior full-year sales.
  • New Customer Wins:: Added 16 new customers (avg. 5 products each), 91 new properties, and 13 Book4time Spa signups in Q3.
  • Market Expansion:: Q3 was the best sales quarter for hotels/resorts/cruise ships, with major new customer wins and brand switches.
  • Guidance Raised:: FY2026 revenue guidance increased to $318M (+15.6% YoY), maintaining 29% subscription growth target.

Business Highlights

The company's hospitality software solutions business continues to show strong growth, with cumulative subscription SaaS sales during the first three quarters of fiscal 2026 already at 95% of the previous best full year sales. Agilysys added 16 new customers, excluding Book4time, and 91 new properties that did not previously have any of the company's products. The company's modernized cloud-native product ecosystem and top-notch sales leadership teams are driving growth, with Ramesh Srinivasan stating that "the business continues to march along the revenue and profitability growth paths we have created for ourselves like a relentless well-oiled machine."

Guidance and Outlook

Agilysys is maintaining its guidance for subscription revenue growth at 29% for FY2026 and has raised its top-line revenue guidance to $318 million. The company expects adjusted EBITDA to remain at 20% for FY2026. Looking ahead, Agilysys expects top-line growth with improved profitability levels, driven by its strong product ecosystem and sales momentum. The company is also expanding into new markets, including higher education and healthcare, and expects its POS business to continue to do well.

Valuation

With a P/E Ratio of 74.93 and an EV/EBITDA of 45.43, Agilysys' valuation appears to be pricing in significant growth expectations. The company's ROE of 10.5% and ROIC of 7.34% indicate a relatively strong return on equity and invested capital. Analysts estimate next year's revenue growth at 14.4%, which may be challenging for the company to meet given its current momentum. However, with its strong product ecosystem and expanding into new markets, Agilysys is well-positioned to drive continued growth and improve its profitability.

3. NewsRoom

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Winford Resort & Casino Manila Philippines Deploys Agilysys Hospitality Technology to Elevate Operations and Service

Mar -04

Source: businesswire.com

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Analyzing Agilysys (NASDAQ:AGYS) and Digital China (OTCMKTS:DCHIF)

Mar -01

Source: defenseworld.net

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Artisan Partners Limited Partnership Buys 14,308 Shares of Agilysys, Inc. $AGYS

Feb -28

Source: defenseworld.net

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Agilysys, Inc. $AGYS Shares Sold by Granite Investment Partners LLC

Feb -23

Source: defenseworld.net

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Rudding Park Selects Agilysys Hospitality Software Solutions to Modernise Guest Journeys and Streamline Operations Across Its Hotel Ecosystem

Feb -19

Source: businesswire.com

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Brown Capital Management LLC Has $50.70 Million Stock Holdings in Agilysys, Inc. $AGYS

Feb -03

Source: defenseworld.net

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New York State Common Retirement Fund Has $25 Million Stock Holdings in Agilysys, Inc. $AGYS

Feb -01

Source: defenseworld.net

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Agilysys Q3 Earnings Call Highlights

Jan -28

Source: defenseworld.net

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

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Aspen Technology

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Growth: 5.1

Quality: 5.9

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Momentum: 7.0

Volatility: 6.0

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Quality: 5.9

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Value: 0.8

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Quality: 8.7

Yield: 0.0

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A-Score: 3.8/10

Value: 3.2

Growth: 8.0

Quality: 4.9

Yield: 0.0

Momentum: 3.0

Volatility: 4.0

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Agilysys

A-Score: 3.8/10

Value: 0.0

Growth: 7.9

Quality: 7.5

Yield: 0.0

Momentum: 4.0

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

77.46$

Current Price

77.46$

Potential

-0.00%

Expected Cash-Flows