Wasatch Small Cap Growth Strategy believes Agilysys, Inc. defies market fears about artificial intelligence disruption. The strategy highlighted the hospitality software provider in its first-quarter 2026 investor letter, arguing that Agilysys' business model is more resilient than anticipated because its property management systems are difficult to replace and often have long-term contracts extending 10 years or more. The firm expects customers to look to Agilysys to incorporate AI functionality into its existing platform rather than develop solutions independently, and sees the company positioned to accelerate earnings and free cash flow growth from its contract with Marriott International. Agilysys shares closed at $87.51 on June 19, 2026, with a one-month return of 9.61% and a 52-week loss of 19.34%, and a market capitalization of $2.46 billion. The Wasatch Small Cap Growth Strategy lagged the Russell 2000 Growth Index, which returned negative 2.81% in the quarter, amid volatile U.S. small-cap stocks driven by shifting sentiment around AI and geopolitical tensions.
Agilysys IncAgilysys is highlighted as having resilient business model with long-term contracts and expected to incorporate AI into its platform, with Marriott contract driving earnings growth.
Marriott International Inc