Question · Q2 2026
Stephen Hardy Sheldon asked if the guidance increase was influenced by changes in Marriott rollout assumptions and sought more context on the factors driving strength in the managed food service (FSM) vertical for POS, including market size and competitive landscape.
Answer
Dave Wood, CFO, and Ramesh Srinivasan, President and CEO of Agilysys, clarified that the guidance increase was not Marriott-related, as it excludes Marriott PMS subscription revenue, and was driven by general sales momentum. Ramesh Srinivasan attributed FSM strength to re-engineered, modernized, and unified POS products, easier implementations, and effective new sales staff. He noted competition from smaller vendors but highlighted Agilysys's improving product sets and implementations. Stephen also asked about PMS product attach rates, to which Ramesh Srinivasan explained that higher attach rates for PMS are expected due to more add-on modules and the need for a unified guest experience, with popular add-ons including golf, spa, sales and catering, booking engine, and loyalty promotions.