Agilysys Reports Record Q4 Revenue, Stock Rises 16%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: seekingalpha
- Strong Earnings Report: Agilysys reported Q4 revenue of $82.9 million, a 12% year-over-year increase, surpassing analyst expectations of $81.6 million, indicating robust market performance.
- Sustained Growth: The company's fiscal year revenue rose approximately 16% year-over-year to $319.3 million, with annual recurring revenue reaching $205.9 million, demonstrating the sustainability of its business model and strong market demand.
- Improved Profitability: Adjusted EBITDA reached $67.7 million, with gross margin improving to 64.4%, reflecting the company's successful shift towards higher-margin subscription and recurring software revenue, thereby enhancing profitability.
- Future Outlook: Agilysys guided for fiscal 2027 revenue between $365 million and $370 million, expecting continued double-digit growth, showcasing confidence in future market opportunities and clear strategic planning.
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Analyst Views on AGYS
Wall Street analysts forecast AGYS stock price to rise
7 Analyst Rating
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 79.500
Low
135.00
Averages
142.00
High
155.00
Current: 79.500
Low
135.00
Averages
142.00
High
155.00
About AGYS
Agilysys, Inc. is a hospitality software company, which is engaged in delivering cloud-native software-as-a-service (SaaS) and on-premises solutions for hotels, resorts, cruise lines, casinos, corporate foodservice management, restaurants, universities, stadiums, and healthcare facilities. The Company’s software solutions include point-of-sale (POS), property management (PMS), inventory and procurement, payments, and related applications that manage and enhance the entire guest journey. It operates across North America, Europe, the Middle East, Asia-Pacific, and India. Its food and beverage ecosystem solutions include InfoGenesis, IG Kiosk, IG KDS, IG OnDemand, IG Fly, IG Quick Pay, IG Smart Menu, IG Digital Menu Board, IG PanOptic, eCash, and Analyze. Its hospitality and leisure (H&L) ecosystem solutions include LMS, Versa, and Stay. Its hospitality and leisure (H&L) experience-enhancer solutions include Book, Express Kiosk, Express Mobile, Spa, Golf, and Sales & Catering.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Agilysys Shares Surge on Strong Quarterly Growth Metrics
- Significant Revenue Growth: Agilysys reported a total net revenue increase of 11.7% year-over-year to $82.9 million in its fiscal 2026 fourth quarter, demonstrating strong market performance that bolstered investor confidence.
- Recurring Revenue Surge: Recurring revenue, which includes subscription and maintenance fees, climbed 18% to $54.4 million, now accounting for 65.5% of total net revenue, indicating the company's robustness in predictable revenue streams and further solidifying its market position.
- AI-Driven Profitability: Agilysys views artificial intelligence as a catalyst for enhanced profitability, with AI-related changes driving gross margin up to 64.4% from 60.7% in the prior year, reflecting competitive advantages in R&D and product differentiation.
- Optimistic Financial Outlook: Management guided for full-year revenue of $365 million to $370 million in fiscal 2027, with subscription revenue growth of at least 30%, indicating the company is well-positioned for continued strong growth in the future.
See More
Agilysys Reports Strong Earnings Growth Amid AI Optimism
- Significant Revenue Growth: Agilysys reported a total net revenue increase of 11.7% year-over-year to $82.9 million in Q4 of fiscal 2026, reflecting strong performance in the hospitality software market and boosting investor confidence.
- Strong Subscription Revenue: Management anticipates at least 30% growth in subscription revenue for fiscal 2027, with this revenue now accounting for 65.5% of total net revenue, highlighting the company's advantages in predictability and stability.
- Margin Improvement: Thanks to AI-driven innovations, Agilysys' gross margin rose from 60.7% in the prior year to 64.4%, enhancing profitability and laying a solid foundation for future growth.
- Optimistic Future Outlook: Management projects total revenue for fiscal 2027 to be between $365 million and $370 million, indicating sustained sales momentum and profitability, with the CEO stating the company is well-prepared for record performance.
See More
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- Rising Bond Yields: The 10-year T-note yield surged to a 16-month high of 4.69%, triggering risk-off sentiment that led to increased stock liquidation, further heightening market uncertainty and potentially prompting the Fed to adopt tighter monetary policies.
- Supportive Economic Data: April pending home sales rose by 1.4% month-over-month, surpassing expectations of 1.0%, and March figures were revised up to 1.7%, demonstrating resilience in the housing market that could provide some support for stocks.
- Oil Price Volatility: WTI crude prices fell nearly 1% following President Trump's comments on Iran, while the IEA reported a decline in global oil inventories of about 4 million bpd, suggesting that the market will remain undersupplied in the near term, impacting related energy stocks.
See More
Agilysys Shares Surge on Strong Quarterly Growth Metrics
- Sales and Profit Growth: Agilysys reported an 11.7% year-over-year increase in total net revenue to $82.9 million for Q4 of fiscal 2026, reflecting strong market performance that bolstered investor confidence.
- Recurring Revenue Increase: The company's recurring revenue rose by 18% to $54.4 million, now accounting for 65.5% of total net revenue, providing a stable revenue stream that secures future financial performance and strengthens market position.
- AI-Driven Profitability: Agilysys views artificial intelligence as a catalyst for improved profitability, with gross margin increasing from 60.7% to 64.4%, showcasing the company's proactive approach to technological innovation and enhancing competitive advantage.
- Optimistic Financial Outlook: Management guided for fiscal 2027 revenue between $365 million and $370 million, with subscription revenue expected to grow at least 30%, indicating strong confidence in the company's growth potential and profitability in the future.
See More
US Stocks Retreat as Tech Rally Falters
- Market Retreat: The S&P 500 index fell by 0.68% and the Nasdaq 100 by 0.95%, both hitting 1.5-week lows, indicating a weakening confidence in tech stocks that could affect investor sentiment and future capital flows.
- Rising Bond Yields: The 10-year T-note yield climbed to a 16-month high of 4.69%, intensifying concerns over rising inflation that may prompt the Fed to pursue tighter monetary policy, thereby impacting stock market performance.
- Supportive Economic Data: April pending home sales rose by 1.4% month-over-month, surpassing expectations of 1.0%, demonstrating resilience in the housing market that could provide some support for stocks, despite overall market pressures.
- Oil Price Volatility: WTI crude oil prices dropped over 1% today due to geopolitical factors, with market concerns about future supply tightness intensifying, potentially affecting stock performance in related sectors, particularly airlines and mining stocks.
See More
U.S. Stocks Decline as Tech Rally Falters
- Market Decline: The S&P 500 index fell by 0.35%, the Dow Jones Industrial Average by 0.19%, and the Nasdaq 100 by 0.45%, indicating a market reaction to the pullback in tech stocks after reaching record highs last week.
- Rising Bond Yields: The 10-year Treasury note yield rose to a 15-month high of 4.66%, triggering risk-off sentiment in the market and leading to long liquidations in stocks, which exacerbates investor concerns about future economic growth.
- Oil Price Volatility: WTI crude oil prices dropped following President Trump's cancellation of a military strike on Iran, despite the IEA reporting a decline in global oil inventories by about 4 million bpd, with the market expected to remain severely undersupplied even if the conflict ends.
- Earnings Performance: So far, 83% of the 454 S&P 500 companies have beaten earnings estimates, with Q1 earnings projected to rise by 12% year-over-year, but excluding the tech sector, the increase is only 3%, highlighting the fragility of the overall economic recovery.
See More
Agilysys Shares Surge on Strong Quarterly Growth Metrics
- Significant Revenue Growth: Agilysys reported a total net revenue increase of 11.7% year-over-year to $82.9 million in its fiscal 2026 fourth quarter, demonstrating strong market performance that bolstered investor confidence.
- Recurring Revenue Surge: Recurring revenue, which includes subscription and maintenance fees, climbed 18% to $54.4 million, now accounting for 65.5% of total net revenue, indicating the company's robustness in predictable revenue streams and further solidifying its market position.
- AI-Driven Profitability: Agilysys views artificial intelligence as a catalyst for enhanced profitability, with AI-related changes driving gross margin up to 64.4% from 60.7% in the prior year, reflecting competitive advantages in R&D and product differentiation.
- Optimistic Financial Outlook: Management guided for full-year revenue of $365 million to $370 million in fiscal 2027, with subscription revenue growth of at least 30%, indicating the company is well-positioned for continued strong growth in the future.
See More
Agilysys Reports Strong Earnings Growth Amid AI Optimism
- Significant Revenue Growth: Agilysys reported a total net revenue increase of 11.7% year-over-year to $82.9 million in Q4 of fiscal 2026, reflecting strong performance in the hospitality software market and boosting investor confidence.
- Strong Subscription Revenue: Management anticipates at least 30% growth in subscription revenue for fiscal 2027, with this revenue now accounting for 65.5% of total net revenue, highlighting the company's advantages in predictability and stability.
- Margin Improvement: Thanks to AI-driven innovations, Agilysys' gross margin rose from 60.7% in the prior year to 64.4%, enhancing profitability and laying a solid foundation for future growth.
- Optimistic Future Outlook: Management projects total revenue for fiscal 2027 to be between $365 million and $370 million, indicating sustained sales momentum and profitability, with the CEO stating the company is well-prepared for record performance.
See More
US Stocks Close Lower as Tech Rally Falters
- Market Decline: The S&P 500 and Nasdaq 100 fell by 0.67% and 0.61%, respectively, reaching 1.5-week lows, indicating concerns over a pullback in tech stocks, particularly as the AI-driven rally loses momentum, which may affect investor confidence.
- Rising Bond Yields: The 10-year T-note yield surged to a 16-month high of 4.69%, triggering risk-off sentiment that led to increased stock liquidation, further heightening market uncertainty and potentially prompting the Fed to adopt tighter monetary policies.
- Supportive Economic Data: April pending home sales rose by 1.4% month-over-month, surpassing expectations of 1.0%, and March figures were revised up to 1.7%, demonstrating resilience in the housing market that could provide some support for stocks.
- Oil Price Volatility: WTI crude prices fell nearly 1% following President Trump's comments on Iran, while the IEA reported a decline in global oil inventories of about 4 million bpd, suggesting that the market will remain undersupplied in the near term, impacting related energy stocks.
See More
Agilysys Shares Surge on Strong Quarterly Growth Metrics
- Sales and Profit Growth: Agilysys reported an 11.7% year-over-year increase in total net revenue to $82.9 million for Q4 of fiscal 2026, reflecting strong market performance that bolstered investor confidence.
- Recurring Revenue Increase: The company's recurring revenue rose by 18% to $54.4 million, now accounting for 65.5% of total net revenue, providing a stable revenue stream that secures future financial performance and strengthens market position.
- AI-Driven Profitability: Agilysys views artificial intelligence as a catalyst for improved profitability, with gross margin increasing from 60.7% to 64.4%, showcasing the company's proactive approach to technological innovation and enhancing competitive advantage.
- Optimistic Financial Outlook: Management guided for fiscal 2027 revenue between $365 million and $370 million, with subscription revenue expected to grow at least 30%, indicating strong confidence in the company's growth potential and profitability in the future.
See More
US Stocks Retreat as Tech Rally Falters
- Market Retreat: The S&P 500 index fell by 0.68% and the Nasdaq 100 by 0.95%, both hitting 1.5-week lows, indicating a weakening confidence in tech stocks that could affect investor sentiment and future capital flows.
- Rising Bond Yields: The 10-year T-note yield climbed to a 16-month high of 4.69%, intensifying concerns over rising inflation that may prompt the Fed to pursue tighter monetary policy, thereby impacting stock market performance.
- Supportive Economic Data: April pending home sales rose by 1.4% month-over-month, surpassing expectations of 1.0%, demonstrating resilience in the housing market that could provide some support for stocks, despite overall market pressures.
- Oil Price Volatility: WTI crude oil prices dropped over 1% today due to geopolitical factors, with market concerns about future supply tightness intensifying, potentially affecting stock performance in related sectors, particularly airlines and mining stocks.
See More
U.S. Stocks Decline as Tech Rally Falters
- Market Decline: The S&P 500 index fell by 0.35%, the Dow Jones Industrial Average by 0.19%, and the Nasdaq 100 by 0.45%, indicating a market reaction to the pullback in tech stocks after reaching record highs last week.
- Rising Bond Yields: The 10-year Treasury note yield rose to a 15-month high of 4.66%, triggering risk-off sentiment in the market and leading to long liquidations in stocks, which exacerbates investor concerns about future economic growth.
- Oil Price Volatility: WTI crude oil prices dropped following President Trump's cancellation of a military strike on Iran, despite the IEA reporting a decline in global oil inventories by about 4 million bpd, with the market expected to remain severely undersupplied even if the conflict ends.
- Earnings Performance: So far, 83% of the 454 S&P 500 companies have beaten earnings estimates, with Q1 earnings projected to rise by 12% year-over-year, but excluding the tech sector, the increase is only 3%, highlighting the fragility of the overall economic recovery.
See More
