Agilysys AGYS shares have surged 56.6% year to date, outperforming the Zacks Computer & Technology sector’s appreciation of 34.5% and the Zacks Computer – Integrated Systems industry’s return of 12.1%.

AGYS’ performance can be attributed to its boosted top-line growth driven by innovative solutions, strategic acquisitions and an expanding market presence.

Innovative Portfolio and Acquisitions Aid AGYS’ Prospects

Agilysys has been benefiting from strong growth trajectory, driven by record sales in property management systems and related add-ons that improve customer operations. Increasing subscription revenues reflect higher adoption of AGYS’ solutions, supported by its successful sales strategies and expanding market footprint.

AGYS’ InfoGenesis Point-of-Sale solutions are improving operational efficiency and guest experiences. The company’s strengthened sales teams and marketing efforts are accelerating market penetration, particularly in gaming, resorts and EMEA verticals.

AGYS’ solutions streamline operations and boost efficiency for hospitality businesses. Lajitas Golf Resort has recently adopted 14 solutions to modernize its property, automating tasks and improving services like check-ins, reservations and payments. Its enhanced solutions for gaming properties are also noteworthy.

Agilysis’ recent acquisition of Book4Time, a leading spa management software provider for top hospitality brands like Marriott International MAR, Hilton Worldwide HLT, Four Seasons, Accor and Intercontinental Hotels Group IHG, has been a key catalyst for its growth. With a revenue model that is nearly 100% subscription-based, Book4Time aligns well with Agilysys’ business strategy.

The acquisition has expanded AGYS’ customer base by 30% with minimal overlap and has contributed significantly to revenue growth. In the second quarter of fiscal 2025, Book4Time added $2.2 million in revenues, including $2.1 million from subscriptions, and secured five new customers for its spa product.

AGYS’ Earnings Estimates Reflect Mixed Outlook

Agilysys expects fiscal 2025 revenues to be $280-$285 million. Subscription revenue growth is expected to be more than 38%. Adjusted EBITDA is expected to be 18% of total revenues.

The Zacks Consensus Estimate for third-quarter fiscal 2025 revenues is pegged at $73.02 million, indicating year-over-year growth of 20.55%. The consensus mark for earnings is currently pegged at 34 cents per share, unchanged over the past 30 days, and indicating a year-over-year decline of 2.86%.

The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $281.56 million, indicating year-over-year growth of 18.57%. The consensus mark for earnings is currently pegged at $1.31 per share, unchanged over the past 30 days, and indicating year-over-year growth of 19.09%.

AGYS has beaten the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 38.16%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

What Should Investors Do With AGYS Stock?

AGYS benefits from a robust portfolio of innovative solutions and strategic acquisitions, positioning it well for continued expansion and market leadership.

AGYS currently carries a Zacks Rank #2 (Buy), which suggests that it may be wise for investors to start accumulating the stock now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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