Agilysys Q3 revenue up 15.6%, beats estimates

Overview

• Hospitality software provider's fiscal Q3 revenue rose 15.6%, beating analyst expectations

• Adjusted EPS for fiscal Q3 missed analyst expectations

• Company raised full-year fiscal 2026 revenue guidance to $318 mln

Outlook

• Agilysys raises full-year fiscal 2026 revenue guidance to $318 mln

• Company expects fiscal 2026 adjusted EBITDA at 20% of revenue

• Agilysys anticipates 29% subscription revenue growth, excluding major PMS project

Result Drivers

• SUBSCRIPTION REVENUE GROWTH - Subscription revenue increased 23.1% year-over-year, driving overall revenue growth

• PROFESSIONAL SERVICES GROWTH - Professional services revenue grew 22% over the prior year due to effective implementation execution

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Agilysys Inc is $140.00, about 30.1% above its January 23 closing price of $107.63

• The stock recently traded at 51 times the next 12-month earnings vs. a P/E of 57 three months ago

Press Release: ID:nBw8KxD5Fa

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