Agilysys

The company’s margin profile and product criticality indicate moderate to strong pricing power. Fiscal 2026 gross margin was 62.6 percent and improved to 63.5 percent in Q1 fiscal 2027 while subscription revenue grew faster than total revenue, suggesting room for price and value‑based packaging.

Unified workflows, payments and loyalty reduce alternatives and make switching costly, allowing price realization on renewals and new modules. That said, hospitality budgets are competitive and professional services utilization can pressure margins during heavy implementation cohorts. Regulation does not constrain prices.

We see continued mix shift to subscription and ecosystem add‑ons as the main driver of latent pricing power rather than list price hikes alone.