By Katherine Hamilton

Agilysys' profit sank in its third quarter, as sales challenges dragged down the company's 2025 outlook, and shares dropped.

The hospitality software company posted a profit of $3.8 million, or 14 cents a share, in the three months ended Dec. 31, compared with $77.1 million, or $2.85 a share, a year earlier. Analysts polled by FactSet were expecting a profit of $5.5 million.

Agilysys lowered its 2025 guidance to $273 million in annual revenue. Earlier this year, the company had guided for $275 million to $280 million in 2025 revenue.

Shares fell 13% to $109 after the market closed Tuesday.

Third-quarter revenue rose 15% to $69.6 million. Analysts surveyed by FactSet forecast revenue of $73.1 million.

Revenue levels were hurt by sales challenges with point-of-sale products, mainly in the managed food services vertical, caused by the company's final modernization transition phase, said Chief Executive Ramesh Srinivasan. Point-of-sales bookings during the first half of the year were slow, said Chief Financial Officer Dave Wood.

Product revenue, including hardware revenue, will likely continue to face challenges in 2025, Srinivasan said.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

January 21, 2025 16:42 ET (21:42 GMT)

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