5 Insightful Analyst Questions From Agilysys’s Q4 Earnings Call

Hospitality software provider Agilysys reported revenue ahead of Wall Streets expectations in Q4 CY2025, with sales up 15.6% year on year to $80.39 million. The company expects the full year’s revenue to be around $318 million, close to analysts’ estimates. Its non-GAAP profit of $0.42 per share was 7.8% below analysts’ consensus estimates.

Agilysys (AGYS) Q4 CY2025 Highlights:

• Revenue: $80.39 million vs analyst estimates of $79.28 million (15.6% year-on-year growth, 1.4% beat)
• Adjusted EPS: $0.42 vs analyst expectations of $0.46 (7.8% miss)
• Adjusted Operating Income: $17.15 million vs analyst estimates of $9.66 million (21.3% margin, 77.6% beat)
• The company slightly lifted its revenue guidance for the full year to $318 million at the midpoint from $316.5 million
• Operating Margin: 14.6%, up from 10.7% in the same quarter last year
• Free Cash Flow Margin: 28.3%, up from 18.9% in the previous quarter
• Market Capitalization: $3.00 billion

Ramesh Srinivasan, President and CEO of Agilysys, commented, “Q3 Fiscal 2026 revenue was a record $80.4 million, the 16th consecutive record revenue quarter, with 15.6% year-over-year total revenue growth driven by subscription revenue growth of 23.1%. We are pleased to see the business momentum surge that occurred during the first half of Fiscal 2026 carry into the second half.

Company Overview

With a tech stack that powers everything from check-in to checkout at some of the world's top hospitality venues, Agilysys develops and provides cloud-based and on-premise software solutions for hotels, resorts, casinos, and restaurants to manage operations and enhance guest experiences.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Agilysys grew its sales at a 17.2% compounded annual growth rate. Although this growth is acceptable on an absolute basis, it fell slightly short of our standards for the software sector, which enjoys a number of secular tailwinds.

Long-term growth is the most important, but within software, a half-decade historical view may miss new innovations or demand cycles. Agilysys’s annualized revenue growth of 16.7% over the last two years aligns with its five-year trend, suggesting its demand was stable.

This quarter, Agilysys reported year-on-year revenue growth of 15.6%, and its $80.39 million of revenue exceeded Wall Street’s estimates by 1.4%.

Looking ahead, sell-side analysts expect revenue to grow 13.1% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and suggests its products and services will face some demand challenges.

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Customer Acquisition Efficiency

The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments.

Agilysys is very efficient at acquiring new customers, and its CAC payback period checked in at 22.8 months this quarter. The company’s rapid recovery of its customer acquisition costs indicates it has a highly differentiated product offering and a strong brand reputation. These dynamics give Agilysys more resources to pursue new product initiatives while maintaining the flexibility to increase its sales and marketing investments.

Key Takeaways from Agilysys’s Q4 Results

It was encouraging to see Agilysys beat analysts’ EBITDA expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street’s estimates. Overall, this print had some key positives. The market seemed to be hoping for more, and the stock traded down 12.3% to $99.68 immediately after reporting.

So do we think Agilysys is an attractive buy at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).

Hospitality software provider Agilysys will be announcing earnings results this Monday after market close. Here’s what to expect.

Agilysys beat analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $79.3 million, up 16.1% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year revenue guidance topping analysts’ expectations.

Is Agilysys a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Agilysys’s revenue to grow 14% year on year to $79.28 million, in line with the 14.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.46 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Agilysys has missed Wall Street’s revenue estimates three times over the last two years.

With Agilysys being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for vertical software stocks. However, the whole sector has been hit hard over the last month as stocks in Agilysys’s peer group are down 8.6% on average. Agilysys is down 11.4% during the same time and is heading into earnings with an average analyst price target of $142 (compared to the current share price of $107.70).

What Happened?

A number of stocks fell in the afternoon session after tech stocks pulled back as reports surfaced that Chinese customs authorities blocked Nvidia's H200 AI chips, effectively halting their entry despite recent U.S. export approvals. 

This semiconductor sell-off, led by Broadcom and Micron, reflected deepening fears that the "AI trade" was colliding with a protectionist "new normal." Investors were concerned about the prospect of a fragmented global order where tech giants are caught between Washington's industrial strategy and Beijing's push for semiconductor sovereignty.Broadening the risk, markets were also agitated about the Justice Department's investigation into Fed Chair Jerome Powell, sparking concerns over central bank independence. This domestic political friction, paired with rising oil prices from Iranian civil unrest, likely forced a pivot from growth to defense.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Communications Platform company Bandwidth fell 3%. Is now the time to buy Bandwidth? Access our full analysis report here, it’s free.
• Cloud Monitoring company Dynatrace fell 3%. Is now the time to buy Dynatrace? Access our full analysis report here, it’s free.
• HR Software company Paylocity fell 2.7%. Is now the time to buy Paylocity? Access our full analysis report here, it’s free.
• Healthcare And Life Sciences Software company Doximity fell 3.1%. Is now the time to buy Doximity? Access our full analysis report here, it’s free.
• Hospitality & Restaurant Software company Agilysys fell 2.7%. Is now the time to buy Agilysys? Access our full analysis report here, it’s free.

Zooming In On Doximity (DOCS)

Doximity’s shares are very volatile and have had 25 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 6 days ago when the stock dropped 3.6% on the news that a broader market rotation out of the technology sector led to profit-taking following a recent rally. 

The move was part of a wider trend that saw high-growth technology stocks fall, with the Nasdaq experiencing the sharpest decline among the major indices. Multiple reports indicated that traders were locking in profits, particularly from the artificial-intelligence trade, which had previously seen a strong run-up. This market action represented a shift in investor focus, as money moved out of tech. 

Defense stocks emerged as the primary beneficiary of this capital shift, surging after President Trump proposed a massive $1.5 trillion defense budget for 2027. Major contractors rallied on the news, with Northrop Grumman jumping over 10% and Lockheed Martin gaining nearly 8%, providing a counterbalance to the tech slump that kept the S&P 500 flat. The rotation into heavy industry was further supported by a stabilization in energy markets, as crude prices rebounded.

Doximity is down 7.4% since the beginning of the year, and at $40.07 per share, it is trading 51.8% below its 52-week high of $83.14 from February 2025. Investors who bought $1,000 worth of Doximity’s shares at the IPO in June 2021 would now be looking at an investment worth $756.13.

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at vertical software stocks, starting with Veeva Systems .

Software is eating the world, and while a large number of solutions such as project management or video conferencing software can be useful to a wide array of industries, some have very specific needs. As a result, vertical software, which addresses industry-specific workflows, is growing and fueled by the pressures to improve productivity, whether it be for a life sciences, education, or banking company.

The 14 vertical software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.7% while next quarter’s revenue guidance was in line.

While some vertical software stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.2% since the latest earnings results.

Veeva Systems

Originally named "Verticals onDemand" before rebranding in 2009, Veeva Systems provides cloud software, data solutions, and consulting services that help life sciences companies develop and bring products to market more efficiently.

Veeva Systems reported revenues of $811.2 million, up 16% year on year. This print exceeded analysts’ expectations by 2.3%. Overall, it was a strong quarter for the company with full-year EPS guidance beating analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

The stock is down 11.2% since reporting and currently trades at $240.50.

We think Veeva Systems is a good business, but is it a buy today? Read our full report here, it’s free.

Best Q3: nCino

Born from the internal technology needs of a community bank in 2011, nCino provides cloud-based software that helps financial institutions streamline client onboarding, loan origination, and account opening processes.

nCino reported revenues of $152.2 million, up 9.6% year on year, outperforming analysts’ expectations by 3.3%. The business had an exceptional quarter with a solid beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $25.59.

Weakest Q3: Upstart

Using over 2,500 data variables and trained on nearly 82 million repayment events, Upstart is an AI-powered lending platform that uses machine learning to help banks and credit unions more accurately assess borrower risk for personal loans, auto loans, and home equity lines of credit.

Upstart reported revenues of $277.1 million, up 70.9% year on year, falling short of analysts’ expectations by 1.3%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations and a significant miss of analysts’ transaction volume estimates.

Upstart delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 5.8% since the results and currently trades at $49.32.

Read our full analysis of Upstart’s results here.

Agilysys

With a tech stack that powers everything from check-in to checkout at some of the world's top hospitality venues, Agilysys develops and provides cloud-based and on-premise software solutions for hotels, resorts, casinos, and restaurants to manage operations and enhance guest experiences.

Agilysys reported revenues of $79.3 million, up 16.1% year on year. This print beat analysts’ expectations by 3.1%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and full-year revenue guidance topping analysts’ expectations.

The stock is up 1.7% since reporting and currently trades at $117.11.

Read our full, actionable report on Agilysys here, it’s free.

Autodesk

Starting with AutoCAD in the 1980s and evolving into a comprehensive design ecosystem, Autodesk provides software solutions for architecture, engineering, construction, manufacturing, and entertainment industries to design, simulate, and visualize projects.

Autodesk reported revenues of $1.85 billion, up 18% year on year. This number surpassed analysts’ expectations by 2.4%. It was a very strong quarter as it also logged full-year EPS guidance exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

The stock is down 6% since reporting and currently trades at $276.75.

Read our full, actionable report on Autodesk here, it’s free.