By Katherine Hamilton

Agilysys shares declined after the company gave guidance that implied a slowdown in subscription revenue growth.

The stock slid 12% $100.15 in after-hours trading Monday. Through the close, shares were down 1.4% in the past three months.

The hospitality software provider recorded earnings in the third quarter of $9.9 million, or 35 cents a share, compared with $3.8 million, or 14 cents a share, the year before.

Stripping out one-time items, adjusted earnings were 42 cents a share, below the 46 cents analysts were looking for.

In the current fiscal fourth quarter, Agilysys gave revenue guidance which implies growth of just over 20%. That would be a decrease from prior quarters.

Agilysys also reiterated its full-year guidance for 29% growth in subscription revenue. That implies fourth-quarter subscription revenue growth of around 20%, which would be a decline compared with previous fourth quarters.

Chief Financial Officer Dave Wood told analysts on a call that the core business is still growing at 25% or more, but comparisons with the year before are now weighing down overall growth.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

January 26, 2026 18:30 ET (23:30 GMT)

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