Hospitality software provider Agilysys (NASDAQ: AGYS) beat Wall Street’s revenue expectations in Q2 CY2026, with sales up 14.3% year on year to $87.68 million. The company’s full-year revenue guidance of $370.5 million at the midpoint came in 0.7% above analysts’ estimates. Its non-GAAP profit of $0.49 per share was 21.7% above analysts’ consensus estimates.
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Agilysys (AGYS) Q2 CY2026 Highlights:
- Revenue: $87.68 million vs analyst estimates of $86.2 million (14.3% year-on-year growth, 1.7% beat)
- Adjusted EPS: $0.49 vs analyst estimates of $0.40 (21.7% beat)
- Adjusted EBITDA: $18.26 million vs analyst estimates of $14.29 million (20.8% margin, 27.8% beat)
- The company slightly lifted its revenue guidance for the full year to $370.5 million at the midpoint from $367.5 million
- "Adjusted EBITDA expectations remain at 24% of revenue for the full fiscal year"
- Operating Margin: 11.1%, up from 5.9% in the same quarter last year
- Free Cash Flow Margin: 8.3%, down from 42.7% in the previous quarter
- Market Capitalization: $2.77 billion
Ramesh Srinivasan, President and CEO of Agilysys, commented, “Q1 Fiscal 2027 was another good quarter with the overall business fundamentals making excellent progress. Revenue was a record $87.7 million, the 18th consecutive record revenue quarter, driven by subscription growth of 26% and record professional services revenue of $19.6 million.
Company Overview
With a tech stack that powers everything from check-in to checkout at some of the world's top hospitality venues, Agilysys (NASDAQ: AGYS) 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
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Luckily, Agilysys’s sales grew at a decent 17.7% compounded annual growth rate over the last five years. Its growth was slightly above the average software company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. Agilysys’s annualized revenue growth of 16.1% over the last two years is below its five-year trend, but we still think the results were respectable. 
This quarter, Agilysys reported year-on-year revenue growth of 14.3%, and its $87.68 million of revenue exceeded Wall Street’s estimates by 1.7%.
Looking ahead, sell-side analysts expect revenue to grow 15.8% over the next 12 months, similar to its two-year rate. This projection is above the sector average and indicates its newer products and services will help support its recent top-line performance.
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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 22.6 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 Q2 Results
It was encouraging to see Agilysys beat analysts’ revenue expectations this quarter. We were also glad its full-year revenue guidance slightly exceeded Wall Street’s estimates. However, full-year adjusted EBITDA margin guidance was reiterated. Overall, this print had some key positives. Investors were likely hoping for more--perhaps a raise on the adjusted EBITDA margin guide given the beat in the quarter--and shares traded down 2.8% to $100.15 immediately following the results.
So do we think Agilysys is an attractive buy at the current price? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
