Why These 15 Software Stocks Are Plunging In 2025

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9. Agilysys Inc (NASDAQ:AGYS)

Number of Hedge Fund Holders In Q4 2024: 20

Agilysys Inc (NASDAQ:AGYS) sells software solutions and services tailored for the hospitality industry.

The stock is down significantly so far in 2025 due to disappointing quarterly results reported in January 2025.

Agilysys reported earnings per share of $0.38, beating estimates of $0.34. However, revenue came in at $69.6 million against expectations of $73.1 million in Q3 FY2025. Investors reacted negatively to this revenue miss, and the stock plummeted.

The revenue shortfall stemmed from ongoing pressures in point-of-sale (POS) system sales and delays in project implementations. These issues disrupted the company’s growth momentum, which had been fueled by strong subscription revenue and acquisitions like Book4Time in prior quarters. Analysts noted that while subscription revenue grew, the weaker POS segment and implementation hiccups raised concerns about near-term growth consistency.

Market sentiment also shifted due to broader economic factors affecting the hospitality sector, which is a key market for Agilysys. Rising operational costs and cautious spending by hospitality businesses may have slowed adoption of new software solutions.

The consensus price target of $127.5 implies 72.93% upside.

AGYS stock is down 44.02% year-to-date.

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