I called a Hold on PAR back in June when the stock was at ~$66. At the time, the fundamentals looked solid, but the price wasn’t leaving much room for investors to benefit if execution slowed down. Looking backI’m Emmanuel Onwusah—a financial analyst, writer, and recovering engineer. I hold FMVA® and BIDA® certifications from the Corporate Finance Institute, and I spend most of my time creating pitch decks, building models, analyzing companies, and trying to make sense of where value meets narrative. My bac ...

Company Performance - Shares of PAR Technology (NYSE: PAR) have declined over 40% year-to-date, indicating that the company's performance has not met the high expectations set by investors [1]. Analyst Background - The analysis is conducted by an individual investor with over 7 years of personal investment experience, focusing on undercovered companies across sectors such as technology, software, electronics, and energy transition [1]. Investment Strategy - The investor aims to identify asymmetric investment opportunities with the potential for market-beating returns, particularly in small to mid-cap companies that are less researched by others [1].

Company Performance - Shares of PAR Technology (NYSE: PAR) have declined over 40% year-to-date, indicating that the company's performance has not met the high expectations set by investors [1]. Analyst Background - The analysis is conducted by an individual investor with over 7 years of personal investment experience, focusing on undercovered companies across sectors such as technology, software, electronics, and energy transition [1]. Investment Strategy - The investor aims to identify asymmetric investment opportunities with the goal of achieving market-beating returns, particularly in small to mid-cap companies that are less researched by others [1].

NEW HARTFORD, N.Y.--(BUSINESS WIRE)--PAR Technology Corporation (NYSE: PAR), a leading foodservice technology provider, today announced the launch of PAR Gamesâ"¢, an interactive loyalty experience designed to engage guests through fun, personalized brand moments triggered by everyday behaviors. By transforming passive loyalty into real-time, emotional engagement, PAR Games helps marketers drive visits, capture zero-party data, and reward guests—without over-relying on discounts. Loyalty programs. ...

Question-and-Answer SessionAll right. So look, to hop right in, PAR has been through an impressive transformational journey over the last decade. So for those who are not as familiar, it would be great to go through a little bit of background on PAR, kind of how did you get to where it is today.Savneet SinghCEO, President & Director So for most of our life, call it, 40 years, we were primarily a hardware and services provider to the category. Our founders invented the point-of-sale terminal, had a great run ...

NEW HARTFORD, N.Y.--(BUSINESS WIRE)--PAR Technology Corporation (NYSE: PAR), a leading foodservice technology provider, today announced the launch of PAR® AI, the new intelligence layer embedded directly into the PAR product suite. PAR AI introduces Coach AIâ"¢, a purpose-built intelligent assistant designed for critical roles in restaurant operations. Intelligence That's Built In, Not Bolted On Unlike AI add-ons that create complexity and enable silos, PAR AI-powered features are built into the. ...

PART I FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Unaudited Q2 2025 financials show strong revenue growth, improved net loss, and slight asset increase from acquisitions [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance sheets show total assets at $1.39 billion, driven by goodwill, offset by lower cash, with rising long-term debt | Balance Sheet Items (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $85,122 | $108,117 | | Accounts receivable – net | $72,332 | $59,726 | | Goodwill | $906,361 | $887,459 | | Total Assets | $1,391,740 | $1,380,727 | | **Liabilities & Equity** | | | | Total current liabilities | $128,938 | $111,837 | | Long-term debt | $372,848 | $368,355 | | Total liabilities | $532,598 | $509,017 | | Total shareholders' equity | $859,142 | $871,710 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 operations show 43.8% revenue growth, driven by subscriptions, improving net loss to $21.0 million | Income Statement (In thousands, except EPS) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total revenues, net** | **$112,404** | **$78,150** | | Subscription service revenue | $71,903 | $44,872 | | Hardware revenue | $26,864 | $20,116 | | **Gross margin** | **$50,992** | **$32,028** | | Operating loss | ($17,307) | ($20,735) | | **Net loss from continuing operations** | **($21,040)** | **($23,587)** | | Net (loss) income per share (basic and diluted) | ($0.52) | ($0.69) | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Six months ended June 30, 2025, show improved operating cash usage, $7.7 million investing, and $11.4 million financing | Cash Flow Summary (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($23,798) | ($37,422) | | Net cash used in investing activities | ($7,693) | ($72,914) | | Net cash provided by financing activities | $11,441 | $191,503 | | Net (decrease) increase in cash | ($18,753) | $81,035 | [Notes to Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the single Restaurant/Retail segment, recent acquisitions, debt restructuring, and key customer relationships - The company operates in a single segment, Restaurant/Retail, providing omnichannel cloud-based software and hardware solutions[31](index=31&type=chunk) - Completed the GoSkip Asset Acquisition for approximately **$4.8 million in cash** to expand its PAR Retail product offerings[45](index=45&type=chunk) - Acquired Delaget for a total consideration of **$125.1 million**, consisting of **$16.9 million in cash** and **$108.2 million in equity**, to complement its Operator Cloud solutions[51](index=51&type=chunk)[52](index=52&type=chunk) - In January 2025, the company issued **$115.0 million of 1.00% Convertible Senior Notes due 2030** and used the proceeds to repay its **$90.0 million credit facility**, resulting in a **$5.8 million loss on debt extinguishment**[81](index=81&type=chunk)[82](index=82&type=chunk) | Customer | Q2 2025 Revenue % | YTD 2025 Revenue % | | :--- | :--- | :--- | | McDonald's Corporation | 18% | 18% | | Yum! Brands, Inc. | 9% | 9% | | All Others | 73% | 73% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong Q2 2025 revenue growth, improved gross margin, narrowed operating loss, and sufficient liquidity [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Q2 2025 results show 43.8% revenue growth, led by subscription services, improved gross margin, and a narrowed operating loss | Revenue Breakdown (In thousands) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Subscription service | $71,903 | $44,872 | 60.2% | | Hardware | $26,864 | $20,116 | 33.5% | | Professional service | $13,637 | $13,162 | 3.6% | | **Total revenues, net** | **$112,404** | **$78,150** | **43.8%** | - The increase in subscription revenue was driven by **$11.7 million** from the Plexure and GoSkip acquisitions (Engagement Cloud) and **$5.8 million** from the TASK and Delaget acquisitions (Operator Cloud), supplemented by organic growth in active sites[110](index=110&type=chunk) | Gross Margin % | Q2 2025 | Q2 2024 | Basis Point Change | | :--- | :--- | :--- | :--- | | Subscription service | 55.3% | 53.1% | +220 bps | | Hardware | 27.3% | 22.8% | +450 bps | | Professional service | 28.7% | 27.5% | +120 bps | | **Total gross margin** | **45.4%** | **41.0%** | **+440 bps** | [Key Performance Indicators and Non-GAAP Financial Measures](index=46&type=section&id=Key%20Performance%20Indicators%20and%20Non-GAAP%20Financial%20Measures) KPIs show **ARR up 49.2%** to $286.7 million, active sites at 176,500, and Adjusted EBITDA improving to $5.5 million | Annual Recurring Revenue (ARR) (In thousands) | As of June 30, 2025 | As of June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Engagement Cloud | $167,465 | $107,933 | 55.2% | | Total Operator Cloud | $119,194 | $84,235 | 41.5% | | **Total ARR** | **$286,659** | **$192,168** | **49.2%** | | Active Sites (in thousands) | As of June 30, 2025 | As of June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Engagement Cloud | 119.1 | 94.6 | 25.9% | | Total Operator Cloud | 57.4 | 27.7 | 107.2% | | Reconciliation to Adjusted EBITDA (In thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net (loss) income | ($21,040) | $54,190 | | Adjustments (Discontinued ops, D&A, etc.) | $26,581 | ($58,538) | | **Adjusted EBITDA** | **$5,541** | **($4,348)** | [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) The company holds $85.1 million in cash, with $23.8 million cash used in operations, and expects sufficient liquidity for 12 months - As of June 30, 2025, the company had cash and cash equivalents of **$85.1 million**[169](index=169&type=chunk) - Cash used in operating activities for the first six months of 2025 was **$23.8 million**, an improvement from **$37.4 million** in the prior year period, driven by improved profitability[170](index=170&type=chunk) - The company expects its available cash to be sufficient to meet its operating needs for at least the next 12 months, which includes funding **$72.1 million** in total contractual obligations[173](index=173&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces immaterial foreign currency and interest rate risks, with fixed-rate debt mitigating interest rate exposure - The company's primary foreign currency exposures relate to non-dollar sales and expenses in Canada, Europe, Asia, and Australia[178](index=178&type=chunk) - Interest rate risk is considered low as the company's Senior Notes (**$20.0 million 2026 Notes**, **$265.0 million 2027 Notes**, and **$115.0 million 2030 Notes**) all have fixed interest rates[179](index=179&type=chunk)[180](index=180&type=chunk) [Item 4. Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2025, disclosure controls and procedures were effective, with no material changes to internal controls - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[181](index=181&type=chunk) - No material changes to the internal control over financial reporting were identified during the quarter ended June 30, 2025[182](index=182&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any pending litigation expected to materially affect its financial condition or operations - The company does not believe it has any pending litigation that would have a material adverse effect on its financial condition or operations[184](index=184&type=chunk) [Item 1A. Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the 2024 Annual Report on Form 10-K have occurred - No material changes to the Risk Factors described in the 2024 Annual Report have occurred[185](index=185&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company withheld 435 shares at $65.56 per share to cover tax obligations on vested restricted stock units - In June 2025, **435 shares** were withheld at an average price of **$65.56** to satisfy tax obligations on vested restricted stock units[186](index=186&type=chunk)[188](index=188&type=chunk) [Item 5. Other Information](index=55&type=section&id=Item%205.%20Other%20Information) Bylaws were amended for director nominations, and a mandatory 'Sell-to-Cover' policy was adopted for RSU tax obligations - On June 2, 2025, shareholders approved amendments to the company's bylaws to enhance procedural and disclosure requirements for director nominations, including universal proxy rules[189](index=189&type=chunk) - On June 3, 2025, the board adopted a mandatory 'Sell-to-Cover' policy requiring the automatic sale of shares to satisfy tax obligations upon RSU vesting for all equity plan participants, including Section 16 Officers[194](index=194&type=chunk)[195](index=195&type=chunk) [Item 6. Exhibits](index=57&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including amended bylaws and officer certifications - Lists exhibits filed with the report, such as the Restated Certificate of Incorporation, Amended and Restated Bylaws, and officer certifications[197](index=197&type=chunk)

Financial Data and Key Metrics Changes - The company reported revenues of $112.4 million for Q2 2025, an increase of 44% year over year [6][26] - Adjusted EBITDA was $5.5 million, which includes $450,000 of accounting charges for non-period deferred contract costs, leading to an adjusted EBITDA of $6 million when backed out [6][27] - Subscription services revenue increased by 60% to $72 million, representing 64% of total revenue [7][27] - The net loss from continuing operations was $21 million, or $0.52 loss per share, compared to a net loss of $24 million, or $0.69 loss per share in the prior year [26][27] - Non-GAAP net income was approximately $1 million, or $0.03 income per share, a significant improvement from a non-GAAP net loss of $8 million, or $0.23 loss per share in the prior year [26][27] Business Line Data and Key Metrics Changes - Total operator cloud ARR ended at $119 million, growing 42% year over year, with organic growth at 13% [7][28] - Engagement Cloud ARR increased by 55%, including 18.5% organic growth compared to Q2 last year [14][28] - Hardware revenue was $27 million, an increase of 34% from the prior year, driven by hardware attachment into the expanding software customer base [28][29] - Professional service revenue remained relatively unchanged at $13.6 million [28] Market Data and Key Metrics Changes - The company signed 27 new logos in Q2, with 19 being multi-product deals, indicating a shift towards unified enterprise-grade solutions in the food service industry [24] - The engagement cloud saw a significant increase in multi-product deals, with 70% of new deals including multiple products [16][28] Company Strategy and Development Direction - The company is focusing on a dual-pronged POS strategy with PAR POS for domestic brands and TASK for global brands, aiming to maximize enterprise concepts [12][39] - There is a strong emphasis on cross-selling and multi-product adoption, with the addition of the Delegate product suite expected to drive growth [10][16] - The company is strategically investing in product development while pausing projected rollouts to focus on building out the TASK platform for late-stage Tier one customers [11][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth prospects, despite slower-than-expected short-term revenue opportunities due to macroeconomic pressures [36][39] - The company anticipates a strong second half of the year, with significant contracted revenue waiting to be rolled out [51][81] - Management highlighted the importance of technology upgrades in the restaurant industry, indicating that the eventual need for tech upgrades remains unchanged despite current delays [37][39] Other Important Information - The company has a pipeline of nearly $50 million in prospective ARR within just POS and back office, providing strong visibility for future growth [13][24] - The company is monitoring uncertainties related to global tariff policies, which may impact hardware revenue and margins [31] Q&A Session Summary Question: Expectations for subscription growth reacceleration - Management indicated that while the back half of the year looks strong, achieving the targeted 20% growth will be challenging due to a lower starting base and slower rollouts in the first half [48][51] Question: Scope and size of multi-product deals - Multi-product deals typically result in a significant uplift in ARPU, with examples showing a doubling of revenue per customer when multiple products are adopted [53][54] Question: Context on mega Tier one deals - Management confirmed that they are pursuing POS deals with three top 20 brands, with decisions expected in 2025 and 2026 [59][60] Question: Active sites between operator and engagement - Management noted that the slight sequential decline in active sites is a timing issue, with a strong pickup expected in Q3 [61][62] Question: Online ordering space and M&A appetite - Management expressed confidence in the online ordering space, highlighting the integration of PAR ordering with loyalty programs as a competitive advantage [69][72]

Company Performance - PAR Technology reported quarterly earnings of $0.03 per share, missing the Zacks Consensus Estimate of $0.04 per share, compared to a loss of $0.23 per share a year ago, representing an earnings surprise of -25.00% [1] - The company posted revenues of $112.4 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.14%, and compared to year-ago revenues of $78.15 million [2] - Over the last four quarters, PAR Technology has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - PAR Technology shares have lost about 20.2% since the beginning of the year, while the S&P 500 has gained 7.8% [3] - The current status of estimate revisions translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.06 on $113.18 million in revenues, and $0.18 on $445.44 million in revenues for the current fiscal year [7] - The outlook for the industry can materially impact the stock's performance, with the Financial Transaction Services industry currently in the top 32% of Zacks industries [8]

Financial Performance - PAR's total Annual Recurring Revenue (ARR) reached $2867 million in Q2 2025[11], a 49% year-over-year growth compared to $1922 million in Q2 2024[11, 27] - Organic ARR grew by 16% year-over-year[19, 26], reaching $2232 million in Q2 2025 compared to $1922 million in Q2 2024[11, 26] - Non-GAAP consolidated gross margin percentage improved to 528% in Q2 2025 from 493% in Q2 2024[19, 35] - Adjusted EBITDA was $55 million in Q2 2025, a $99 million increase from Q2 2024[19, 37, 40] Revenue Breakdown - Subscription service revenue increased by 60% to $71903 thousand in Q2 2025 from $44872 thousand in Q2 2024[37, 40] - Operator Cloud ARR reached $1192 million in Q2 2025, a 42% year-over-year growth[30] - Engagement Cloud ARR reached $1675 million in Q2 2025, a 55% year-over-year growth[31] - In Q2 2025, revenue was composed of 640% Subscription Service, 239% Hardware, and 121% Professional Service[21] Strategic Initiatives - The company divested its Government segment to focus on becoming a pure-play food service tech company[12] - PAR has a proven track record of strategic M&A, expanding its TAM into convenience stores and international markets[19]