Agilysys vs. HubSpot: Which Software Stock Is a Better Buy in 2026?

Software investors seeking growth in 2026 often weigh specialized vertical platforms against broad horizontal suites. Here’s a comparison of Agilysys (NASDAQ:AGYS) and HubSpot (NYSE:HUBS) to see which offers the better opportunity today.

Agilysys serves the niche hospitality market with end-to-end property management tools. HubSpot targets businesses with a wide-reaching CRM and marketing platform. Both companies are successfully moving toward increased profitability while leveraging new artificial intelligence features to keep their customers engaged and loyal in an evolving digital landscape.

The case for Agilysys

Agilysys sells a specialized suite of software tools specifically for the hospitality industry, including property management, point-of-sale, and inventory systems. The company serves diverse clients such as MGM Resorts International and Hilton Worldwide to help them manage guest experiences and back-office operations. Because no single client accounts for more than 10% of total revenue, the business avoids heavy reliance on any one major contract.

During its 2026 fiscal year (FY), revenue reached $319.3 million, representing a growth rate of 15.9% compared to the previous year. The company reported a net income of $38.8 million, which results in a net margin of approximately 12%. This net margin, which represents the percentage of revenue remaining after all expenses are paid, showed improvement over the 8.4% reported in FY 2024.

As of its March 2026 balance sheet, the debt-to-equity ratio is 0.1x, while the current ratio is 1.5x. Note that stock-based compensation (SBC) represented 31.2% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement. Agilysys remains one of the best small cap tech stocks focused on the global travel and leisure industry.

The case for HubSpot

HubSpot provides a customer platform that integrates marketing, sales, and service tools for businesses. With over 288,000 customers, no single client accounts for more than 10% of total revenue, creating a diversified income stream. To expand its reach, it recently acquired the media brand Starter Story and the AI platform Warmly to decode buyer intent across its network.

In FY 2025, the company generated revenue of $3.1 billion, reflecting a year-over-year growth rate of 19.2%. While it achieved net income of $45.9 million, its net margin is relatively thin at 1.5%. This is a significant shift from previous net losses, showing a focus on reaching consistent profitability as the business scales.

Based on its December 2025 balance sheet, HubSpot maintains a debt-to-equity ratio of 0.1x and a current ratio of 1.7x. Note that stock-based compensation represented 69.4% of operating cash flow, which inflates reported cash generation. Free cash flow reached $707.6 million, though investors should watch how much of that is driven by non-cash employee pay.

Risk profile comparison

Agilysys faces risks related to the integration of artificial intelligence, including potential data hallucinations and biased outputs. The company also depends heavily on the hospitality sector, meaning downturns in travel or gaming could lead to lower revenue. Finally, it competes against large technology providers, which may exert pricing pressure.

HubSpot is exposed to legal and reputational risks as it integrates generative AI into its platform, which must comply with complex global regulations. The company also operates in a crowded market where it must fend off competition from established software giants such as Microsoft. Additionally, its revenue depends on subscription renewals, making it vulnerable to economic shifts that might cause customers to cancel.

Valuation comparison

HubSpot trades at a lower Forward P/E and P/S ratio than Agilysys. These metrics compare price to future earnings estimates and annual sales.

Sector benchmark uses the SPDR XLK sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

Both Agilysys and HubSpot experienced declines in their stocks earlier in the year due to Wall Street’s fear that artificial intelligence will eat into the business of software companies. This led to a sector-wide sell-off, giving long-term investors an opportunity to pick up shares in Agilysys and HubSpot as both are seeing strong growth.

Agilysys reported the 17th consecutive quarter of record revenue in its fiscal fourth quarter ended March 31. The company also forecasted full-year fiscal 2027 revenue to come in between $365 million to $370 million, up from the prior year’s $319.3 million.

HubSpot posted excellent 23% year-over-year sales growth to $881 million in the first quarter. This contributed to the company achieving Q1 net income of $32.6 million, a dramatic turnaround from the prior year’s net loss of $21.8 million. It expects 2026 full-year revenue to rise 18% year over year.

With both Agilysys and HubSpot doing well, Wall Street’s AI concerns do not appear to be affecting these businesses. Deciding which to invest in comes down to a couple of factors. Agilysys is a niche player dependent on the hospitality industry. HubSpot caters to a broader customer base, making it more resilient against a downturn in a specific sector.

In addition, HubSpot stock is a better value, as indicated by its far lower sales and forward earnings multiples. These factors make it the better investment over Agilysys.

Robert Izquierdo has positions in HubSpot and Microsoft. The Motley Fool has positions in and recommends HubSpot and Microsoft. The Motley Fool has a disclosure policy.