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what it is
Agilysys sells the software hotels, casinos, resorts, and restaurants use to run bookings, payments, and guest service.
how it gets paid
FY2025 net revenue was ~$275.6M (+16.1% YoY). Subscription services remained the largest single line we show here at ~$96M (~35% of that FY2025 base)—reconcile segment tables in the 10-K if you need exact sub-lines.
why it's growing
FY2025 revenue grew 16.1%. Latest print: Q3 fiscal 2026 (quarter ended Dec. 31, 2025) revenue $80.4M (+15.6% YoY)—GAAP diluted EPS $0.35, adjusted EPS $0.42, gross margin 62.5% (per Jan. 26, 2026 release).
what just happened
That Q3 FY2026 $80.4M quarter was a revenue beat versus the high‑$70Ms consensus band, yet the stock still trades like hospitality SaaS must never slow—valuation tension is the story, not a phantom $236M quarter.
At a glance
B+ balance sheet — decent shape, but not bulletproof
25/100 earnings predictability — expect surprises
94.8x trailing p/e — you're paying up for this one
8.3% return on capital — nothing to write home about
$0.82 fy2024 eps est
xvary composite: 62/100 — average
What they do
Agilysys sells the software hotels, casinos, resorts, and restaurants use to run bookings, payments, and guest service.
Agilysys sells one stack across POS, PMS, payments, inventory, and guest apps. That breadth means one vendor can run more of your property, and replacing it is painful for your staff and your guests. With just $15 million of long-term debt, or 1% of capital per, the company has room to keep funding that land-and-expand play.
How they make money
~$275.6M
FY2025 net revenue · +16.1% vs. prior year
Subscription services
$96M
+24.0%
Maintenance and support
$58M
+8.0%
Professional services
$33M
+6.0%
Property management software
$55M
+18.0%
POS, payments, and guest apps
$34M
+17.0%
The products that matter
hotel operations software
Property Management (PMS)
supports a ~$275.6M FY2025 revenue base
it runs bookings, front-desk workflows, and guest management inside a business that just posted 16 consecutive record quarters. This is the system customers are least eager to rip out.
workflow core
restaurant and retail payments
Point-of-Sale (POS)
tied to the $178M recurring engine
it processes transactions across the property and helps keep customers inside the platform. That matters when 64.7% of revenue now comes from subscription and support.
cross-sell layer
cloud guest management
Agilysys Stay
part of the push toward $318M guidance
this is part of the cloud migration story. We do not have segment-level revenue here, but management's raised full-year revenue guide to $318M only works if products like this keep winning share inside existing accounts.
cloud bet
Key numbers
94.8x
trailing p/e
P/E → stock price divided by earnings → so what: you are paying almost 95 years of trailing profit for one share.
13.1%
operating margin
Operating margin → what is left after running the company → so what: Agilysys is profitable, but not yet at the level its valuation suggests.
8.3%
return on capital
Return on capital → profit made on the money tied up in the business → so what: 8.3% is decent, not elite.
$15M
long-term debt
Debt equals just 1% of capital per, which gives Agilysys balance-sheet room that many smaller software names do not have.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 2 — safer than 80% of stocks
- price stability 20 / 100
- long-term debt $15M (1% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for AGYS right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Q3 fiscal 2026 revenue $80.4M (+15.6% YoY)—a record quarter that cleared the high‑$70Ms consensus band.
Jan. 26, 2026: GAAP net income $9.9M ($0.35/diluted share) vs. $3.8M prior-year quarter; adjusted EPS $0.42; adjusted EBITDA $17.3M; free cash flow $22.7M; gross margin 62.5%; recurring revenue $52.0M (64.7% of quarter revenue). FY2026 total revenue guidance raised to $318M.
$80.4M
q3 fy26 revenue
$0.35
gaap diluted eps
62.5%
gross margin
the number that mattered
Recurring revenue hit $52.0M and was 64.7% of the quarter—subscription growth has to keep feeding that mix while the stock prices in perfection.
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What could go wrong
the #1 risk is multiple compression if subscription growth cools.
med
the premium is doing a lot of work
AGYS trades at 94.8x trailing earnings versus a 24.3x software peer average. That is a giant expectation gap.
If growth or margins wobble, the multiple compresses first and asks questions later.
med
too much of the growth is coming from one line
Subscription & Support is 64.7% of revenue and grew 29%. Product Sales is the other 35.3% and was flat.
If the recurring engine slows before the rest of the business reaccelerates, the transformation story looks less premium.
med
hospitality spending is cyclical even when software sounds defensive
Agilysys sells into hotels, resorts, and casinos. Those customers cut and delay projects when travel demand weakens or capex gets tighter.
The $98M product-sales line is the obvious place for slowdown to show up first.
med
the stock assumes more operating leverage than the numbers show today
Gross margin is 62.0%, but return on capital is only 8.3% and operating margin is 14.2%.
That means the business quality is improving, but the bottom-line engine still has to catch up to the valuation.
With $276M of annual revenue, a 94.8x trailing p/e, and a stock priced for more than just steady execution, AGYS needs the 29% subscription growth line to stay strong while margins improve.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings report
The date is not listed in this snapshot. What matters is simple: after 16 record quarters, the market wants another clean subscription-growth print and better profit conversion.
metric
subscription mix
Subscription & Support is 64.7% of revenue and grew 29%. If that growth rate breaks lower, the multiple argument gets weaker fast.
trend
product sales need to stop standing still
Product Sales still represent 35.3% of revenue, or $98M, and were flat. A broader recovery makes growth feel more durable.
risk
premium multiple tolerance
AGYS trades at 94.8x trailing earnings versus a 24.3x peer average. You do not need bad news for a rerating. You just need less-good news.
Analyst rankings
earnings predictability
25 / 100
Earnings are harder to model here than the revenue streak suggests. In human-speak, analysts should expect a few awkward quarters.
risk rank
2
This score says the company is safer than roughly 80% of stocks on balance-sheet and business-risk factors. The business is not fragile. The setup is just expensive.
price stability
20 / 100
The stock itself is jumpy. In plain English: even if the business executes, the share price is still capable of acting like a caffeinated small-cap.
source: institutional data
Institutional activity
institutional ownership data for AGYS is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$117
current price
n/a
target midpoint · n/a from current
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