Agilysys Stock Darts Higher On Q4 Earnings Beat, Strong Guidance

Agilysys Inc (NASDAQ:AGYS) shares are rising in extended trading Monday after the company reported better-than-expected results for the fourth quarter and issued guidance above estimates. Agilysys stock is showing exceptional strength. What’s behind AGYS gains? Agilysys Q4 Earnings Highlights Agilysys reported fiscal fourth-quarter revenue of $82.95 million, beating analyst estimates of $81.56 million, according to Benzinga Pro. The hospitality software provider reported fourth-quarter adjusted earnings of 63 cents per share, beating estimates of 50 cents per share. Total revenue increased 11.7% year-over-year as subscription revenue grew 24.1% year-over-year. Recurring revenue grew to a record 65.5% of total net revenue during the quarter. Agilysys generated $35.4 million of free cash flow in the quarter and ended the period with approximately $116.9 million in cash and cash equivalents. “Sweeping AI-related changes across the entire organization, especially in R&D, are helping us to improve operating leverage across several business areas and increase the pace of competitive product differentiation of our hospitality-focused software solution ecosystem,” said Ramesh Srinivasan, president and CEO of Agilysys. Agilysys expects fiscal 2027 revenue of $365 million to $370 million versus estimates of $363.56 million. The company also guided for subscription revenue growth of at least 30% on a year-over-year basis. Agilysys executives are currently discussing the quarter on an earnings call that started at 4:30 p.m. ET. AGYS Shares Surge After The Close AGYS Price Action: Agilysys shares were up 13.75% in after-hours, trading at $79.85 at the time of publication on Monday, per Benzinga Pro. Read Also: Micron, AMD, Intel Stocks Could Face An Abrupt Reversal, Top AI Expert Warns Image: Shutterstock.com