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Agilysys, Inc. AGYS

Three-pass checkedFresh as companies report

Agilysys grew subscription revenue 26.1% last quarter and raised its full-year guidance to at least 32% subscription growth.

Its operating income fell from $12.6M to $9.7M over the same period, because it is spending to win those subscriptions.

AGYS · price with moving averages

Daily · 6MWeekly · 3Y
$56$78$100$123$145 Sep '23Apr '24Nov '24Jun '25Jan '26Aug '26 BID
EMAs82140

Source: market data.

The business

Agilysys sells the software a hotel or casino runs on: the property management system that handles reservations and rooms, the point of sale in the restaurants and bars, the inventory and procurement behind them, and the payments running through it all. Customers are hotels, resorts, casinos, cruise lines, stadiums, campuses and senior living operators.

The business has been converting from selling perpetual licences to selling subscriptions, which suppresses reported revenue and profit during the transition and produces a much better business at the end of it. A licence sale books in full on delivery; the same software sold by subscription books over several years, so a company doing this well looks worse for a while on purpose.

Inside the complete Back of Napkin

  1. 01The business
  2. 02The numbers
  3. 03Management
  4. 04How it fails or surprises you
  5. 05The shape of the payoff
  6. 06Closing thoughts
  7. 07Methodology

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