Shares of hospitality software provider Agilysys (NASDAQ:AGYS) jumped 24.1% in the morning session after the company reported strong third-quarter 2025 results that surpassed revenue and profit expectations, and it raised its full-year forecast.
Hospitality software provider Agilysys (NASDAQ:AGYS) reported Q3 CY2025 results beating Wall Street’s revenue expectations, with sales up 16.1% year on year to $79.3 million. The company’s full-year revenue guidance of $316.5 million at the midpoint came in 1.8% above analysts’ estimates. Its non-GAAP profit of $0.40 per share was 4.3% above analysts’ consensus estimates.
Hospitality software provider Agilysys (NASDAQ:AGYS) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 16.1% year on year to $79.3 million. The company’s full-year revenue guidance of $316.5 million at the midpoint came in 1.8% above analysts’ estimates. Its non-GAAP profit of $0.40 per share was 4.3% above analysts’ consensus estimates.
Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on.
But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.
Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on.
However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.
A number of stocks fell in the afternoon session after a significant downward revision in U.S. job creation data fueled concerns about a weakening labor market.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Veeva Systems (NYSE:VEEV) and the rest of the vertical software stocks fared in Q2.
Growth is oxygen.
But when it evaporates, the consequences can be severe - ask anyone who bought Cisco in the Dot-Com Bubble or newer investors who lived through the 2020 to 2022 COVID cycle.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
A surplus of cash can mean financial stability, but it can also indicate a reluctance (or inability) to invest in growth.
Some of these companies also face challenges like stagnating revenue, declining market share, or limited scalability.
Shares of hospitality industry software provider Agilysys (NASDAQ:AGYS) fell 3.2% in the afternoon session after a hotter-than-expected wholesale inflation report revived concerns about persistent inflation and tempered hopes for a Federal Reserve interest rate cut. The Producer Price Index (PPI) for July jumped 3.3% from a year earlier, surprising economists who had forecasted a 2.5% rate. This data revived concerns about persistent inflation and forced traders to reconsider the likelihood of a near-term interest rate cut by the Federal Reserve. High-growth technology stocks, which dominate the SaaS landscape, are particularly sensitive to interest rate fluctuations.
From commerce to culture, software is digitizing every aspect of our lives. This secular theme makes SaaS companies attractive investment candidates but also comes with higher valuations that cause volatility.
Unfortunately, the rich prices have haunted them over the past six months as the industry has shed 13.2%. This drawdown is a noticeable divergence from the S&P 500’s 5.4% return.
A number of stocks jumped in the afternoon session after cooler-than-expected inflation data ignited investor optimism for a potential Federal Reserve interest rate cut. The July Consumer Price Index (CPI) report, an important measure of inflation, came in cooler than expected, showing prices holding steady at an annual rate of 2.7%. This data has led to speculation that the Federal Reserve might lower interest rates. For growth-focused sectors like SaaS, lower interest rates are particularly beneficial as they increase the present value of companies' future earnings, making their stocks more appealing.
