Chris J. Robertson, the Controller of Agilysys Inc. (NASDAQ:AGYS), recently sold shares of the company's common stock. The transaction, which took place on November 1, 2024, involved the sale of 264 shares at a price of $100.86 each, amounting to a total of $26,627. Following this sale, Robertson holds 22,624 shares directly.
The sale was executed to cover withholding tax obligations resulting from the vesting of restricted common stock on October 31, 2024.
In other recent news, Agilysys has reported record revenues for its fiscal 2025 second quarter, marking the 11th consecutive quarter of record revenue. The company's revenue increased by 16.5% year-over-year, reaching $68.3 million, and recurring revenue grew by 21% to $41.4 million. The recent acquisition of Book4Time, a spa management software provider, is expected to bolster Agilysys's market position, increasing its customer properties by 30%.
Despite a downward trend in product revenue, the company's services revenue hit a record $16.3 million, up 39.2% from the prior year. Agilysys has raised its full-year revenue guidance to between $280 million and $285 million, with subscription revenue growth projected to exceed 38%. However, full-year organic subscription revenue expectations were reduced from over 27% to approximately 25% due to challenges in POS transformation.
The company remains cautious with its M&A strategy and is currently working on unifying the sales forces of Agilysys and Book4Time. Despite facing challenges in the U.S. food service management vertical and APAC region, the company is experiencing significant growth in various verticals, particularly in the U.S. and EMEA markets. These are the latest developments for Agilysys.
InvestingPro Insights
While Chris J. Robertson's recent sale of Agilysys Inc. (NASDAQ:AGYS) shares was primarily to cover tax obligations, it's worth examining the company's current financial position and market performance to provide context for investors.
Agilysys has shown strong revenue growth, with a 17.05% increase in the last twelve months as of Q2 2025, reaching $254.58 million. This growth is complemented by a healthy gross profit margin of 62.53%, indicating efficient operations and pricing power. The company's EBITDA has also seen a significant boost, growing by 68.48% over the same period.
InvestingPro Tips highlight that Agilysys operates with a moderate level of debt and has cash flows that can sufficiently cover interest payments, suggesting financial stability. Additionally, analysts predict the company will remain profitable this year, which aligns with its positive performance over the last twelve months.
However, investors should note that AGYS is trading at high valuation multiples across various metrics, including EBIT, EBITDA, revenue, and Price/Book ratios. This could indicate that the market has high expectations for the company's future growth and performance.
The stock has experienced a significant uptick over the last six months, with a 29.97% price total return. Despite this strong performance, InvestingPro Tips indicate that the stock has taken a big hit over the last week, with a 7.66% decline. This recent dip could present an opportunity for investors who believe in the company's long-term prospects.
For those seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Agilysys, providing deeper insights into the company's financial health and market position.
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