Agilysys Stock Eyes 3-Month Lows After Sinking 20% Premarket On Mixed Q3 Results, Guidance Cut: Retail Mood Nosedives

Agilysys, Inc. (AGYS) stock plummeted in Wednesday’s premarket after the Alpharetta, Georgia-based provider of hospitality industry-focused software-enabled solutions and services reported mixed quarterly results and cut its guidance.

The company reported fiscal 2025 third-quarter adjusted earnings per share (EPS) of $0.38, higher than the $0.35 for the year-ago quarter and the consensus of $0.34, according to Koyfin.

Net revenue climbed nearly 15% year-over-year (YoY) to a record $69.6 million, and yet missed the $74.15 consensus. Agilysys noted that recurring revenue, comprising subscription and maintenance charges, was at a record $44.4 million and accounted for nearly 64% of the total revenue. 

Gross margin expanded YoY to 63% from 62.5%.

Ramesh Srinivasan, CEO of Agilysys, said, “Subscription revenue continues to grow at a healthy pace and we are pleased with the integration progress of the Book4Time acquisition.”

“However, revenue levels, especially one-time product revenue, continue to be impacted by recent sales challenges with point-of-sale products, mainly in the managed food services vertical, caused by our final modernization transition phase.”

Agilysys also sounded a note of caution regarding its forward outlook. It expects fiscal year 2025 product revenue, including hardware revenue, to remain challenged. However, it expects the year to be a good one for subscription revenue, which is expected to grow at least 38%.

As such, the company cut its annual revenue outlook to $273 million from the previously issued $280 million to $285 million range. The company maintained its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin outlook of 18%.

AGYS sentiment and message volume January 22, 2025, as of premarket as of 9:23 am ET | Source: Stocktwits

On Stocktwits, sentiment toward Agilysys stock plummed to ‘extremely bearish’ (3/100), the lowest level in over a year, from the ‘neutral’ mood that prevailed a day ago. Message volume is at ‘extremely high’ levels.

A retail stock watcher said the stock is entering a bearish trend.

Another said the stock was overpriced based on several factors and recommended shorting the stock.

In premarket trading, Agilysys stock slumped 20.18% to $100.49. If the decline persists until the market opens, the stock will hit a three-month low. The stock is likely to suffer its biggest one-loss since Oct. 2023.

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