Agilysys (PS3) AI Stock Analysis

Agilysys

(Frankfurt:PS3)

Rating:―N/A

Action:N/A

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Positive Factors

Recurring subscription growthRapid, repeated subscription growth increases revenue visibility and shifts the business toward recurring economics. The expanding SaaS base can support steadier cash generation, deeper customer relationships, and continued cross-selling across PMS, POS, and related hospitality modules.

Negative Factors

Decelerating growth and cash-flow momentumSlower growth alongside declining year-over-year free cash flow momentum could reduce the pace at which Agilysys converts strong demand into expanding financial capacity. If sustained, this may constrain reinvestment flexibility and make future earnings growth less consistent.

Agilysys (PS3) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 3.27B
Dividend Yield: ―
Average Volume (3M): 41
Price to Earnings (P/E): 73.3
Beta (1Y): 0.42
Revenue Growth: 9.30%
EPS Growth: 74.73%
Country: Germany
Employees: 2,413
Sector: Technology
Sector Strength: 61
Industry: Software - Application

Agilysys Business Overview & Revenue Model

Company Description

Agilysys, Inc. operates as a developer and marketer of software-enabled solutions and services to the hospitality industry in North America, Europe, the Asia-Pacific, and India. The company offers software solutions fully integrated with third party...

Agilysys Earnings Call Summary

Earnings Call Date:Oct 25, 2026(Q2-2027)|% Change Since:-4.72%|Next Earnings Date:Jan 25, 2027

Earnings Call SentimentPositive

The call was strongly positive, marked by record sales, revenue, subscription growth, profitability, backlog activity, cash generation, and repeated increases to fiscal 2027 guidance. Management also highlighted broad-based momentum across HRC, FSM, APAC, Marriott, AI initiatives, and cross-selling. The main challenges were the Marriott rollout remaining below halfway complete, temporary Q3 EBITDA margin timing pressure, a sequential decline in professional services revenue, low hardware attach rates, and the fact that AI monetization is still in an early beta phase.

Positive Updates

Record Sales Momentum Across Core Verticals

Fiscal 2027 Q2 was the best-ever July-to-September sales period, following the best-ever Q1. Domestic Hotels, Resorts and Cruise ships sales increased 33% year over year, Domestic Foodservice Management sales increased 42%, and Asia Pacific sales increased 47%. Domestic HRC sales were about 23% higher than the previous record quarter.

Negative Updates

Marriott Rollout Remains Below Halfway Point

Although the Marriott project is on plan and more than 2,000 properties are live, management stated that the rollout has not yet reached the halfway mark for properties, rooms, or revenue. Management also cautioned that a project of this size cannot be expected to proceed completely smoothly at every step.

Company Guidance

For fiscal 2027, Agilysys expects revenue of $374 million to $378 million and subscription revenue growth of at least 34%; product revenue is expected to remain in the $20 million to $22 million range for the second half of the fiscal year, professional services should still grow in the 5% to 10% range, adjusted EBITDA is expected to be 25% of revenue, and the company still expects to exit FY '27 close to 30% of revenue, with adjusted EBITDA excluding stock-based compensation, which will continue in the 6% to 7% range for the fiscal year. For the remainder of the year, go-lives are expected to be $3.5 million to $3.7 million, putting the exit rate in the kind of 38% to 39% growth rate for subscription, though the company could do better than that; Q3 adjusted EBITDA is expected to be only slightly north of 22% of revenue, and Q4 is expected to be close to 30% of revenue.

Agilysys Risk Analysis

Agilysys disclosed 34 risk factors in its most recent earnings report. Agilysys reported the most risks in the "Tech & Innovation" category.

Tech & Innovation - Risks related to the company’s reliance on technology and ability to make innovative products

Latest Risks Added

0 New Risks

Agilysys Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:PS3 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRSH	79Outperform	$3.84B	22.42	19.50%	―	15.57%	―
BRZE	66Neutral	$5.20B	-44.42	-18.78%	―	27.44%	0.82%
NATL	66Neutral	$3.39B	17.36	49.22%	―	3.78%	60.08%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PAR	61Neutral	$730.88M	-9.98	-8.73%	―	18.81%	25.45%
DBD	54Neutral	$1.85B	25.25	7.62%	―	6.25%	57.31%

* Technology Sector Average

Performance Comparison

DE:PS3 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:PS3	Agilysys, Inc.	101.00	-7.00	-6.48%
PAR	Par Technology	17.67	-17.92	-50.35%
FRSH	Freshworks, Inc. Class A	14.72	3.54	31.66%
BRZE	Braze, Inc.	45.75	17.56	62.29%
DBD	Diebold Nixdorf Inc	55.05	-3.80	-6.46%
NATL	NCR Atleos, LLC	45.82	9.62	26.57%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Agilysys AI Stock Analysis