Agilysys (NASDAQ:AGYS) Releases Earnings Results, Beats Estimates By $0.12 EPS

Agilysys (NASDAQ:AGYS) issued its earnings results on Monday. The software maker reported $0.67 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.55 by $0.12, FiscalAI reports. The company had revenue of $93.36 million for the quarter, compared to analysts’ expectations of $90.92 million. Agilysys had a return on equity of 11.94% and a net margin of 12.99%. Agilysys’s quarterly revenue was up 17.7% compared to the same quarter last year. During the same period last year, the business earned $0.41 EPS.

Here are the key takeaways from Agilysys’ conference call:

• Positive Sentiment: Agilysys reported record fiscal Q2 revenue of $93.4 million, up 17.7% year over year, with recurring revenue increasing 22% and subscription revenue rising 32.6% to $44.2 million.
• Positive Sentiment: Strong bookings, backlog and implementation activity prompted the company to raise full-year revenue guidance to $374 million-$378 million, subscription growth guidance to at least 34%, and adjusted EBITDA guidance to 25% of revenue.
• Positive Sentiment: Sales momentum was broad-based, including record domestic hotels, resorts and cruise sales, with HRC sales up 33%, food-service management sales up 42%, and Asia-Pacific sales up 47% year over year.
• Positive Sentiment: Profitability continued to improve, with adjusted EBITDA reaching a record $24.1 million, or 25.9% of revenue, while gross margin increased to 64.6%; management expects to exit the fiscal year near a 30% EBITDA margin.
• Neutral Sentiment: The Marriott PMS rollout remains on plan, with more than 2,000 properties live and select-service implementations nearing completion, but management said the project is not yet close to halfway complete across properties, rooms or revenue.

Agilysys Price Performance

AGYS opened at $123.45 on Tuesday. The company has a market capitalization of $3.48 billion, a price-to-earnings ratio of 90.74, a P/E/G ratio of 3.49 and a beta of 0.37. The firm’s fifty day moving average price is $108.12 and its two-hundred day moving average price is $92.30. Agilysys has a 1 year low of $61.50 and a 1 year high of $145.25.

Insider Activity

In related news, SVP Kyle C. Badger sold 8,400 shares of the business’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $114.06, for a total transaction of $958,104.00. Following the transaction, the senior vice president directly owned 75,037 shares in the company, valued at approximately $8,558,720.22. The trade was a 10.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO William Wood, III sold 6,000 shares of the business’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $114.72, for a total transaction of $688,320.00. Following the transaction, the chief financial officer owned 35,052 shares in the company, valued at approximately $4,021,165.44. This trade represents a 14.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 212,812 shares of company stock worth $23,046,675. Company insiders own 8.70% of the company’s stock.

More Agilysys News

Here are the key news stories impacting Agilysys this week:

• Positive Sentiment: Revenue rose 17.7% year over year to a record $93.4 million, surpassing the roughly $90.9 million consensus estimate. This marked Agilysys’ 19th consecutive quarter of record revenue. Agilysys Announces Record Revenue of $93.4M in Fiscal 2027 Second Quarter
• Positive Sentiment: Agilysys reported adjusted earnings of $0.67 per share, above the $0.55 analyst consensus and up from $0.41 a year earlier. Gross profit increased 23.2%, while net income rose 18.4% to $13.2 million. Agilysys Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management raised full-year guidance, supporting the view that demand for Agilysys’ hospitality software remains healthy. One valuation analysis estimates the shares could still be approximately 8% undervalued based on the revised outlook. Agilysys Could Be 8% Undervalued Following Raised Full Year Guidance
• Neutral Sentiment: The company ended the quarter with $137.6 million in cash, more than double the year-ago level, while operating cash flow was broadly unchanged at $15.2 million. This provides financial flexibility but does not indicate accelerating cash generation.
• Negative Sentiment: Despite the earnings beat cited by several reports, another data source calculated diluted EPS at $0.46, below a $0.56 estimate. The discrepancy may reflect differences between GAAP and adjusted figures and could contribute to investor caution. Agilysys Releases Q2 2027 Earnings
• Negative Sentiment: At approximately 91 times earnings, AGYS remains priced for substantial growth. The stock is also above the $100–$120 range of recently cited analyst targets, increasing the risk that investors sell into strong results.
• Negative Sentiment: Insiders reported nine sales and no purchases over the past six months, including substantial selling by the CEO. While insider transactions do not determine operating performance, they can weigh on sentiment.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on AGYS. Needham & Company LLC lifted their price objective on shares of Agilysys from $130.00 to $135.00 and gave the company a “buy” rating in a report on Monday, August 10th. Oppenheimer reaffirmed an “outperform” rating on shares of Agilysys in a research report on Monday, October 12th. Weiss Ratings reiterated a “hold (c)” rating on shares of Agilysys in a research note on Friday, October 9th. Zacks Research lowered Agilysys from a “strong-buy” rating to a “hold” rating in a report on Monday, July 27th. Finally, Cantor Fitzgerald reissued an “overweight” rating on shares of Agilysys in a research note on Tuesday, July 28th. Five equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, Agilysys has an average rating of “Moderate Buy” and a consensus target price of $124.60.

Agilysys Company Profile

Agilysys, Inc develops and provides hospitality technology for hotels, resorts, casinos, cruise lines and other guest-focused businesses. Its software and services are designed to help operators manage core property functions, improve guest experiences and streamline food, beverage and retail operations.

The company’s product portfolio includes property-management systems, point-of-sale solutions, inventory and procurement tools, payment services, guest-facing applications, mobile ordering and resort-management software.