Overview

* Hospitality software maker Agilysys ( AGYS ) fiscal Q2 revenue grows 16.1% yr/yr, beating analyst expectations

* Adjusted EPS for fiscal Q2 beats consensus, reflecting strong operational performance

* Company raises full-year fiscal 2026 revenue guidance to $315M-$318M

Outlook

* Agilysys ( AGYS ) raises full-year 2026 revenue guidance to $315 mln to $318 mln

* Company expects subscription revenue growth of 29% for fiscal 2026

* Adjusted EBITDA expectations remain at 20% of revenue for fiscal 2026

Result Drivers

* SUBSCRIPTION REVENUE GROWTH - Co reports 33% increase in subscription revenue, driving overall revenue growth

* SALES SUCCESS - Co achieved second highest selling success quarter, contributing to strong business momentum

* BACKLOG VISIBILITY - High demand for cloud-native solutions keeps backlogs at record levels, providing visibility for future revenue

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $79.3 $76.9

Revenue mln mln (6

Analysts

)

Q2 Beat $0.40 $0.38 (6

Adjusted Analysts

EPS )

Q2 Net $11.7

Income mln

Q2 Beat $16.39 $14.90

Adjusted mln mln (6

EBITDA Analysts

)

Q2 Gross 61.70%

Margin

Q2 $15 mln

Adjusted

Free

Cash

Flow

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "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 ( AGYS ) is $126.66, about 8% above its October 24 closing price of $116.53

* The stock recently traded at 62 times the next 12-month earnings vs. a P/E of 66 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)