Agilysys (NASDAQ:AGYS) Posts Earnings Results, Misses Estimates By $0.04 EPS

Agilysys (NASDAQ:AGYS) issued its earnings results on Monday. The software maker reported $0.42 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.46 by ($0.04), FiscalAI reports. The company had revenue of $80.39 million for the quarter, compared to the consensus estimate of $79.07 million. Agilysys had a return on equity of 11.22% and a net margin of 8.12%.Agilysys’s quarterly revenue was up 15.6% on a year-over-year basis. During the same quarter last year, the business posted $0.38 EPS.

Here are the key takeaways from Agilysys’ conference call:

• Raised guidance — management increased full-year revenue guidance to $318 million and reaffirmed 29% subscription revenue growth and a 20% adjusted EBITDA target, signaling confidence in continued top-line and profitability expansion.
• Record Q3 results and SaaS momentum — revenue hit a record $80.4M (16th consecutive record quarter), recurring revenue was $52M (64.7% of total) and subscription revenue was a record $34.9M (up 23.1% YoY), showing sustained subscription growth.
• Improving implementations and cash flow — professional services revenue rose 22% to $17.7M, services backlog declined, and free cash flow was $22.7M, reflecting faster conversion of bookings to revenue and stronger operational visibility.
• Marriott PMS rollout progressing — pilot implementations completed and larger implementation waves are starting; the project is excluded from current backlog/guidance but is positioned as a significant future growth catalyst.
• Near-term margin and comp headwinds — gross margin dipped slightly to 62.5% due to one-time revenue mix and ramping services headcount, and management said Book4Time acquisition comps will temper implied Q4 subscription growth, which could constrain near-term margin expansion.

Agilysys Stock Up 5.5%

Shares of AGYS stock opened at $113.55 on Tuesday. Agilysys has a 52 week low of $63.71 and a 52 week high of $145.25. The firm has a market capitalization of $3.18 billion, a price-to-earnings ratio of 132.04 and a beta of 0.43. The stock has a fifty day moving average of $119.89 and a 200 day moving average of $115.43.

Trending Headlines about Agilysys

Here are the key news stories impacting Agilysys this week:

• Positive Sentiment: Recorded revenue beat and recurring‑revenue strength — Agilysys reported a 16th consecutive record revenue quarter of $80.4M (up ~15.6% y/y) and topped consensus revenue estimates, supporting the company’s growth thesis. Read More.
• Neutral Sentiment: Earnings-call details and metric analysis available — the Q3 earnings call transcript and follow-up analysis provide color on bookings, renewal rates and margin trends that will determine whether revenue strength can translate into durable profit growth. Investors will parse the call for subscription-booking cadence and timing. Read More.
• Neutral Sentiment: Analyst/metric write-ups summarize the quarter’s nuances — research notes review how key metrics compared to estimates and year-ago numbers, useful for modeling forward revenue and margin trajectories. Read More.
• Negative Sentiment: EPS missed expectations — non‑GAAP EPS of $0.42 came in below consensus (~$0.46), a disappointment that pressured the stock after the print. Read More.
• Negative Sentiment: Management outlook flagged subscription-sales slowdown — guidance/commentary implied a deceleration in subscription bookings, which markets view as a risk to recurring revenue growth and longer‑term margin leverage. That outlook triggered selling in some sessions. Read More.

Insider Transactions at Agilysys

In related news, SVP Kyle C. Badger sold 502 shares of Agilysys stock in a transaction dated Monday, November 3rd. The stock was sold at an average price of $124.64, for a total value of $62,569.28. Following the completion of the sale, the senior vice president directly owned 114,911 shares in the company, valued at approximately $14,322,507.04. This trade represents a 0.43% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Donald A. Colvin sold 6,000 shares of the company’s stock in a transaction dated Friday, November 21st. The stock was sold at an average price of $123.28, for a total value of $739,680.00. Following the completion of the sale, the director owned 24,592 shares of the company’s stock, valued at approximately $3,031,701.76. The trade was a 19.61% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 9,576 shares of company stock valued at $1,189,070. 8.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Agilysys

Institutional investors have recently modified their holdings of the stock. CIBC Bancorp USA Inc. purchased a new position in Agilysys during the third quarter valued at $290,000. NewEdge Advisors LLC increased its position in shares of Agilysys by 37.3% during the 3rd quarter. NewEdge Advisors LLC now owns 3,777 shares of the software maker’s stock worth $398,000 after purchasing an additional 1,027 shares during the last quarter. CANADA LIFE ASSURANCE Co boosted its position in shares of Agilysys by 169.0% during the third quarter. CANADA LIFE ASSURANCE Co now owns 60,945 shares of the software maker’s stock worth $6,321,000 after buying an additional 38,288 shares during the period. Woodline Partners LP increased its stake in Agilysys by 8.7% during the third quarter. Woodline Partners LP now owns 3,335 shares of the software maker’s stock worth $351,000 after purchasing an additional 267 shares during the period. Finally, Dark Forest Capital Management LP purchased a new position in Agilysys in the 3rd quarter valued at approximately $394,000. Hedge funds and other institutional investors own 88.00% of the company’s stock.

Wall Street Analyst Weigh In

A number of research firms have recently commented on AGYS. BTIG Research assumed coverage on shares of Agilysys in a research note on Tuesday, December 16th. They set a “neutral” rating for the company. UBS Group restated a “buy” rating on shares of Agilysys in a research note on Monday, December 15th. Cantor Fitzgerald reiterated an “overweight” rating and issued a $140.00 target price on shares of Agilysys in a research report on Tuesday, October 28th. Needham & Company LLC reaffirmed a “buy” rating and issued a $140.00 price objective on shares of Agilysys in a research note on Monday, December 15th. Finally, Oppenheimer boosted their price target on shares of Agilysys from $130.00 to $140.00 and gave the stock an “outperform” rating in a research report on Thursday, December 4th. Four analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $145.40.

About Agilysys

Agilysys, Inc is a publicly traded technology company (NASDAQ: AGYS) that specializes in providing software and services to the hospitality industry. The company’s solutions span property management, point-of-sale, inventory and procurement, workforce management, analytics and mobile guest engagement. These offerings are designed to streamline hotel and resort operations, enhance guest experiences and improve financial performance for clients across the lodging, gaming, cruise, senior living and higher-education markets.

Agilysys delivers its portfolio through both cloud-based and on-premises deployments, enabling hoteliers and hospitality operators to select the infrastructure model that best aligns with their operational requirements and IT strategies.