Agilysys beats Q2 revenue estimates on subscription growth, raises 2026 rev guidance

Agilysys

27/10/2025 21:16

Overview

Hospitality software maker Agilysys 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 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/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$79.3 mln
$76.9 mln (6 Analysts)
Q2 Adjusted EPS
Beat
$0.40
$0.38 (6 Analysts)
Q2 Net Income
$11.7 mln
Q2 Adjusted EBITDA
Beat
$16.39 mln
$14.90 mln (6 Analysts)
Q2 Gross Margin
61.70%
Q2 Adjusted Free Cash Flow
$15 mln


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 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: ID:nBw85CbZwa

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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.)