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Greenhaven Road Capital, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund returned approximately -9%, bringing the YTD returns to approximately -9%. The factors that affected the portfolio during the quarter included a lack of direct investment in AI, no overlap with the S&P 500 and Russell 2000, and insufficient ownership of small, high growth, yet unprofitable companies that have driven the recent ...

Core Insights - The fund experienced a return of approximately -9% during Q3, leading to a year-to-date return of approximately -9% [2] - The portfolio lacks direct exposure to AI, focusing instead on companies that are integrating AI into their operations, which has affected short-term performance [3][5] - The investment strategy emphasizes long-term growth potential and durable competitive advantages rather than short-term market trends [5][8] Portfolio Analysis - The top five holdings include PAR Technologies, Cellebrite, KKR, LifeCore, and Burford, all of which have faced declines in share price year-to-date [7][32] - LifeCore's share price dropped over 10% following a shelf offering announcement, despite positive business developments [12][15] - Cellebrite's valuation has been impacted by a general decline in software multiples, with a 26% drop in Enterprise Value to Next 12 Months Revenue for medium growth companies [17][18] Company-Specific Developments - LifeCore is expected to ramp up revenues significantly by 2026, driven by new customer wins and favorable regulatory changes [13][15] - Cellebrite is positioned to benefit from AI advancements, with plans to release investigative AI tools in January 2026 [20][22] - KKR's diversified asset management approach remains robust, with significant growth in Fee Related Earnings and a focus on expanding its investor base [25][31] Market Trends and Challenges - The current market environment has led to a compression of software multiples, affecting companies like Cellebrite and PAR Technologies [18][46] - Concerns regarding traditional private equity and private credit have emerged, but KKR's diversified model mitigates some of these risks [24][30] - The investment landscape is characterized by volatility, with a disconnect between share prices and underlying business progress [10][42] Future Outlook - The fund's strategy focuses on long-term value realization, with expectations that current market conditions will eventually improve for the companies held [9][43] - There is potential for significant growth in companies like Hagerty and Kingsway, driven by strategic partnerships and management quality [33][35] - The outlook for PAR Technologies hinges on winning key contracts, which could substantially increase recurring revenue and growth rates [51][60]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Earnings Per Share (EPS) of $0.06, surpassing the estimated EPS and indicating a positive trend over the past year.Revenue of approximately $119.2 million, exceeding estimates and reflecting positive investor outlook on revenue generation capabilities.PAR Technology Corporation, listed on the NYSE:PAR, is a company that provides software and hardware solutions for the hospitality industry. On November 6, 2025, PAR reported its earnings, revealing an earnings per share (EPS) of $0.06, surpassing the estimate ...

PAR Technology (PAR) came out with quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.09 per share. This compares to a loss of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -33.33%. A quarter ago, it was expected that this software provider for the hospitality industry would post earnings of $0.04 per share when it actually produced earnings of $0.03, delivering a surprise of -25%.Over th ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $119 million, representing a 23% increase year-over-year, driven by software subscription and hardware revenue growth [4][19] - Adjusted EBITDA for Q3 was $5.8 million, an improvement of $3.4 million compared to the same period in 2024 [20][29] - Non-GAAP net income for Q3 was $2.5 million, or $0.06 earnings per share, compared to a non-GAAP net loss of $3.1 million in the prior year [20][29] - Non-GAAP operating expenses as a percentage of total revenue improved to 43.4%, a 590 basis point improvement from the prior year [27][29] Business Line Data and Key Metrics Changes - Annual Recurring Revenue (ARR) reached $298.4 million, up 15% organically, with Operator Cloud ARR increasing 31% year-over-year [5][21] - Engagement Cloud ARR grew 16% year-over-year, including 15% organic growth [9][21] - Hardware revenue for the quarter was $30 million, a 32% increase from the prior year [23] Market Data and Key Metrics Changes - The company expanded its international functionality, onboarding a Burger King franchisee in Canada, showcasing its ability to serve global customers [8] - The company reported a record backlog and customer commitments, indicating strong future growth potential [8][32] Company Strategy and Development Direction - The company aims to leverage AI to enhance operational efficiency and customer engagement, with the launch of Coach AI as a key innovation [14][16] - The long-term strategy includes becoming the leading enterprise technology provider for restaurants and convenience stores, with a focus on multi-product deals and cross-selling [30][31] - The company is pursuing aggressive M&A opportunities in a buyer's market, focusing on accretive deals that enhance growth [30][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing increased visibility from signed deals and a robust pipeline for Q4 and beyond [36][70] - The company noted that despite macroeconomic challenges, investments in technology are increasing among customers, indicating a shift towards more integrated solutions [39] - Management highlighted the importance of loyalty programs in maintaining margins during sales slowdowns, indicating a strong demand for such solutions [60] Other Important Information - The company reported a positive operating cash flow of $8 million for Q3, indicating improved cash generation capabilities [28][29] - The company is focused on maintaining a flat cost base while driving operational leverage through AI utilization [4][27] Q&A Session Summary Question: What changed between Q2 and Q3 that increased confidence? - Management noted that more signed deals and a filled backlog provided greater visibility for future growth [36] Question: Is the company considering M&A given the current market conditions? - Management indicated an opportunistic approach to M&A, focusing on accretive deals while being cautious with share usage [38][66] Question: How has the recent market environment impacted customer decision-making? - Management observed that while there was a slowdown in the first half of the year, RFP activity has increased, and investments in technology are rising [39] Question: What is the status of the Task business rollout? - Management confirmed that the rollout is planned for 2026, transitioning from RFP to actual development [42] Question: Can you elaborate on the growth potential in loyalty programs? - Management emphasized that loyalty is becoming essential for maintaining margins and that there is significant growth potential in both restaurants and convenience stores [60]

As you can see below, PAR Technology’s sales grew at an incredible 16.2% compounded annual growth rate over the last five years. This shows it had high demand, a useful starting point for our analysis.With $440.5 million in revenue over the past 12 months, PAR Technology is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. On the bright side, it can grow faster because it h ...

Financial Performance - Total revenues for Q3 2025 reached $119.2 million, a 23.1% increase from $96.8 million in Q3 2024[17] - Subscription service revenue grew to $74.8 million, up 24.5% from $59.9 million year-over-year[17] - Net loss for Q3 2025 was $18.2 million, compared to a net loss of $19.8 million in Q3 2024, showing a slight improvement[19] - The company reported a comprehensive loss of $29.0 million for Q3 2025, compared to a comprehensive loss of $16.0 million in Q3 2024[19] - For the nine months ended September 30, 2025, the company reported a net loss of $63.57 million compared to a net income of $16.07 million in the same period of 2024[25] - The company reported a net loss of $24,350,000 for the quarter ending March 31, 2025, and a net loss of $21,040,000 for the quarter ending June 30, 2025[21] - The company experienced a net income of $54,190,000 for the quarter ending June 30, 2024, following a net loss of $18,288,000 for the quarter ending March 31, 2024[23] - The company reported a net loss of $19,832,000 for the quarter ending September 30, 2024[23] Revenue Breakdown - Total revenues for the nine months ended September 30, 2025, were $335.4 million, an increase of $90.5 million or 36.9% compared to $244.9 million for the same period in 2024[108] - Subscription service revenues for the nine months ended September 30, 2025, were $215.1 million, an increase of $71.9 million or 50.2% compared to $143.2 million for the same period in 2024[109] - Hardware revenues for the nine months ended September 30, 2025, were $78.6 million, an increase of $17.6 million or 28.9% compared to $61.0 million for the same period in 2024[110] - Subscription service revenue for the three months ended September 30, 2025, was $74,763,000, up from $59,909,000 in the same period of 2024, representing a year-over-year increase of 24.5%[42] - Hardware revenue increased by 32.0% year-over-year to $29.9 million, accounting for 25.1% of total revenue[100] Expenses and Costs - Research and development expenses for Q3 2025 were $19.3 million, an increase of 8.1% from $17.8 million in Q3 2024, highlighting ongoing investment in innovation[17] - Operating expenses for the nine months ended September 30, 2025, totaled $199.3 million, an increase of 21.7% compared to $163.8 million for the same period in 2024[108] - General and administrative expenses for the nine months ended September 30, 2025, rose by $14.8 million or 19.0% to $92.7 million from $77.9 million in 2024[124] - Sales and marketing expenses for the nine months ended September 30, 2025, increased by $5.3 million or 17.0% to $36.5 million from $31.2 million in 2024[121] - Stock-based compensation expenses amounted to $7,181,000 for the quarter ending June 30, 2025, and $5,937,000 for the quarter ending September 30, 2024[21][23] Assets and Liabilities - Total current assets increased to $227.1 million as of September 30, 2025, compared to $218.0 million at the end of 2024[15] - Total liabilities rose to $539.3 million, up from $509.0 million at the end of 2024, indicating increased financial obligations[15] - Cash and cash equivalents decreased to $92.5 million from $108.1 million at the end of 2024, reflecting cash outflows[15] - Goodwill increased to $898.5 million as of September 30, 2025, from $887.5 million at the end of 2024, indicating potential acquisitions or business growth[15] - As of September 30, 2025, total shareholders' equity stands at $838,049,000, with an accumulated deficit of $343,510,000[21] Acquisitions and Investments - The company acquired GoSkip for approximately $4.8 million to enhance its PAR Retail product offerings, focusing on self-checkout solutions[43] - The Delaget Acquisition was completed for a total consideration of $125.1 million, which included $16.9 million in cash and equity consideration valued at $108.2 million[50] - Goodwill from the Delaget Acquisition was preliminarily valued at $97.954 million, reflecting expected synergies from the acquisition[56] - The company incurred acquisition expenses of approximately $0.6 million related to the GoSkip Asset Acquisition, which were capitalized as part of the asset cost[45] Cash Flow and Financing - Cash used in operating activities for continuing operations was $15.41 million, a decrease from $24.44 million in the prior year[25] - The company experienced a net cash decrease of $14.65 million in cash and cash equivalents, ending the period with $106.89 million compared to $121.07 million at the end of the previous year[27] - Cash used in investing activities significantly decreased to $10.9 million for the nine months ended September 30, 2025, compared to $178.1 million for the same period in 2024[164] - Cash provided by financing activities was $11.5 million for the nine months ended September 30, 2025, down from $279.3 million for the same period in 2024[165] - The company raised $194,490,000 from a private placement of common stock, net of issuance costs of $5.5 million[23] Market and Customer Insights - The U.S. market contributed $98.2 million in revenue for Q3 2025, up from $81.6 million in Q3 2024, while international revenue increased to $21.0 million from $15.1 million[84] - McDonald's Corporation accounted for 23% of total revenues in Q3 2025, up from 18% in Q3 2024, highlighting the importance of this customer[85] Risk and Compliance - The company does not believe it has any pending litigation that would have a material adverse effect on its financial condition or results of operations[178] - There have been no material changes to the Risk Factors described in the 2024 Annual Report[179] - The company's management evaluated the effectiveness of disclosure controls and procedures as of September 30, 2025, concluding they were effective[175] - There were no changes in internal control over financial reporting during the quarter ended September 30, 2025, that materially affected the internal control over financial reporting[176]

Earnings Presentation November 6, 2025 NYSE: PAR partech.com Q3 2025 Forward-Looking Statements. This presentation contains forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, Section 27A of the Securities Act of 1933, as amended, and the Private Securities Litigation Reform Act of 1995, and the accuracy of such statements is necessarily subject to risks, uncertainties and assumptions as to future events that may not prove ...