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Agilysys beats Q2 profit estimates on subscription revenue growth; hikes forecast

By Reuters News


Overview

  • US hospitality software provider's fiscal Q2 revenue rose 18%, beating analyst expectations

  • Adjusted EPS for fiscal Q2 beat consensus, rising to $0.67

  • Company raised full-year revenue and subscription growth guidance on strong sales momentum


Outlook

  • Agilysys raises full-year 2027 revenue guidance to $374 mln-$378 mln

  • Company now expects full-year subscription revenue growth of at least 34%

  • Agilysys expects full-year adjusted EBITDA to be 25% of revenue, up from 24% previously


Result Drivers

  • SUBSCRIPTION REVENUE - Co said Q2 revenue was driven by 32.6% year-over-year growth in subscription revenue

  • ONE-TIME PRODUCT SALES - Co said Q2 product revenue was higher than expected as hospitality industry increased investments in modern POS technology

  • SALES MOMENTUM - Co said record sales in Q2 kept total backlog at record levels despite strong implementation and delivery results


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Beat

$93.40 mln

$90.91 mln (8 Analysts)

Q2 Adjusted EPS

Beat

$0.67

$0.55 (8 Analysts)

Q2 Net Income

$13.20 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "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 $135.00, about 11.9% above its October 23 closing price of $120.69

  • The stock recently traded at 42 times the next 12-month earnings vs. a P/E of 40 three months ago


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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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