Agilysys (AGYS) Stock Forecast & Price Target

Agilysys is viewed favorably because its F2Q27 results showed durable acceleration, with revenue of $93.4M, subscription revenue up 32.6% y/y, and adjusted EBITDA margin expanding to 25.9%, indicating both top-line momentum and improving profitability. The bullish thesis is strengthened by record bookings, backlog near record levels, strong cross-sells into the existing customer base, and management’s raised FY27 subscription growth guidance to 34%+ and EBITDA margin outlook to 25%, suggesting execution is outperforming prior expectations. Its differentiated hospitality software platform, combined with the Marriott rollout moving from select-service to full-service and broad-based strength outside Marriott, supports the view that Agilysys can sustain faster growth and margin expansion.

Agilysys is facing weakening fundamentals as F2Q services revenue fell 2% q/q to $19.2M, free cash flow of $14.8M declined 1.2% y/y despite nearly 50% EBITDA growth, and new customer adds slowed to 14, below the preferred 15–20 quarterly range and the lowest in seven quarters. The company also sold an average of six products in new deals, down 1 y/y, while limited Marriott revenue transparency leaves an important growth driver harder to underwrite. Given its exposure to hospitality spending, a prolonged downturn, slower MAR rollout, and reliance on key suppliers and international operations could pressure growth, profitability, and sentiment.