Do You Believe in the Growth Potential of Agilysys (AGYS)

Wasatch Global Investors, an asset management company, released its “Wasatch Small Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. small-cap stocks experienced significant gains this quarter, despite volatility. They initially dipped after President Trump announced unexpectedly high tariff rates, but quickly rebounded as his economic team showed signs of softening their stance. Against this backdrop, the Strategy performed in line with the Russell 2000® Growth Index’s 11.97% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Wasatch Small Cap Growth Strategy highlighted stocks such as Agilysys, Inc. (NASDAQ:AGYS). Agilysys, Inc. (NASDAQ:AGYS) develops and markets software solutions and services to the hospitality industry. The one-month return of Agilysys, Inc. (NASDAQ:AGYS) was 1.33%, and its shares gained 13.53% of their value over the last 52 weeks. On August 4, 2025, Agilysys, Inc. (NASDAQ:AGYS) stock closed at $118.75 per share, with a market capitalization of $3.33 billion.

Wasatch Small Cap Growth Strategy stated the following regarding Agilysys, Inc. (NASDAQ:AGYS) in its second quarter 2025 investor letter:

“Another top contributor for the strategy was Agilysys, Inc. (NASDAQ:AGYS), another technology company. The stock of the hospitality-software company was up sharply after the firm released its latest quarterly operating results. Fundamentals for the business remain encouraging, with Agilysys reporting record quarterly revenue growth of $74.3 million, up 19.4% from the same period last year. Going forward, we continue to like Agilysys’ growth potential as its niche software takes market share across the hospitality industry.”

Why Is Agilysys Inc (AGYS) Plunging In 2025?

An expert IT engineer demonstrating a new software solution to hotel managers in a boardroom.

Agilysys, Inc. (NASDAQ:AGYS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 21 hedge fund portfolios held Agilysys, Inc. (NASDAQ:AGYS) at the end of the first quarter compared to 20 in the previous quarter. Agilysys, Inc. (NASDAQ:AGYS) reported Q1 fiscal 2026 revenue of $76.7 million, a 21% increase year-over-year, marking the 14th consecutive quarter of record results. While we acknowledge the risk and potential of Agilysys, Inc. (NASDAQ:AGYS) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AGILYSYS, INC. (NASDAQ:AGYS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Agilysys, Inc. (NASDAQ:AGYS) and shared Conestoga Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.