Agilysys (NASDAQ: AGYS) reported Q4 CY2025 revenue of $80.39 million, beating analyst estimates by 1.4%. The company’s full-year revenue is expected to be around $318 million, close to expectations. However, its non-GAAP profit of $0.42 per share was 7.8% below analyst consensus. The company’s operating margin rose to 14.6%, and free cash flow margin increased to 28.3%. Agilysys CEO Ramesh Srinivasan highlighted the 16th consecutive record revenue quarter, driven by subscription revenue growth of 23.1%. The stock price fell 12.3% post-earnings report. Is Agilysys a buy now?

Agilysys develops hospitality software solutions for hotels, resorts, casinos, and restaurants. Over the past five years, the company grew sales at a 17.2% CAGR, slightly below software sector standards. Its revenue growth over the last two years aligns with the long-term trend. Q4 saw a 15.6% revenue increase, exceeding estimates by 1.4%. Analysts project a 13.1% revenue growth over the next 12 months, indicating potential demand challenges. Agilysys’s customer acquisition efficiency is strong, with a CAC payback period of 22.8 months. Post-earnings report, the stock price dropped 12.3%.

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