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Hospitality Software Firm Agilysys Soars to New Heights in Q2 2025
5 Aug
Summary
- Agilysys, Inc. (AGYS) reports record quarterly revenue growth of 19.4% in Q2 2025
- Wasatch Small Cap Growth Strategy performed in line with Russell 2000 Growth Index's 11.97% return
- U.S. small-cap stocks rebound after initial dip due to Trump's tariff announcement
According to the second-quarter 2025 investor letter from Wasatch Global Investors' Small Cap Growth Strategy, U.S. small-cap stocks experienced significant gains this quarter, despite initial volatility. The stocks 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 Wasatch Small Cap Growth Strategy performed in line with the Russell 2000® Growth Index's 11.97% return. One of the top contributors to the strategy's performance was Agilysys, Inc. (NASDAQ:AGYS), a technology company that develops and markets software solutions and services to the hospitality industry. Agilysys reported record quarterly revenue growth of $74.3 million, up 19.4% from the same period last year. The firm's fundamentals remain encouraging, and Wasatch continues to like Agilysys' growth potential as its niche software takes market share across the hospitality industry.
Looking ahead, while Wasatch acknowledges the potential of Agilysys, Inc. (NASDAQ:AGYS) as an investment, the firm believes certain AI stocks offer greater upside potential and carry less downside risk. Investors interested in an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend are encouraged to check out the firm's free report on the best short-term AI stock.
