PAR Technology Corporation Q2 2025 Earnings Release [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) The company reported strong Q2 2025 revenue growth, improved non-GAAP profitability, and a record company-wide pipeline - CEO Savneet Singh highlighted a strong quarter with **record multi-product logo signings** and the **largest company-wide pipeline to date**, building a foundation for future growth and profitability[2](index=2&type=chunk) [Q2 2025 Performance vs. Q2 2024](index=1&type=section&id=Q2%202025%20Performance%20vs.%20Q2%202024) The company demonstrated significant year-over-year improvement with 43.8% GAAP revenue growth and a notable turnaround in non-GAAP profitability **Q2 2025 Financial Highlights (vs. Q2 2024)** | (in millions, except % and per share amounts) | GAAP Q2 2025 | GAAP Q2 2024 | vs. Q2 2024 | Non-GAAP Q2 2025 | Non-GAAP Q2 2024 | vs. Q2 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $112.4 | $78.2 | better 43.8% | - | - | - | | **Net Loss from Continuing Operations/Adjusted EBITDA** | $(21.0) | $(23.6) | better $2.5 million | $5.5 | $(4.3) | better $9.9 million | | **Diluted Net (Loss) Income Per Share from Continuing Operations** | $(0.52) | $(0.69) | better $0.17 | $0.03 | $(0.23) | better $0.26 | | **Subscription Service Gross Margin Percentage** | 55.3% | 53.1% | better 220 bps | 66.4% | 66.4% | no change | [Year-to-Date 2025 Performance vs. 2024](index=1&type=section&id=Year-to-Date%202025%20Performance%20vs.%202024) Year-to-date results show 45.9% revenue growth and a substantial improvement in Non-GAAP Adjusted EBITDA compared to the prior year period **Year-to-Date 2025 Financial Highlights (vs. YTD 2024)** | (in millions, except % and per share amounts) | GAAP YTD 2025 | GAAP YTD 2024 | vs. YTD 2024 | Non-GAAP YTD 2025 | Non-GAAP YTD 2024 | vs. YTD 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $216.3 | $148.2 | better 45.9% | - | - | - | | **Net Loss from Continuing Operations/Adjusted EBITDA** | $(45.6) | $(44.0) | worse $1.6 million | $10.1 | $(14.5) | better $24.6 million | | **Diluted Net (Loss) Income Per Share from Continuing Operations** | $(1.13) | $(1.33) | better $0.20 | $0.02 | $(0.66) | better $0.68 | | **Subscription Service Gross Margin Percentage** | 56.5% | 52.4% | better 410 bps | 67.7% | 66.1% | better 160 bps | [Key Performance Indicators (KPIs)](index=1&type=section&id=Key%20Performance%20Indicators%20(KPIs)) Key growth metrics showed strong momentum, with total Annual Recurring Revenue growing 49% and subscription service revenues increasing 60% - **Annual Recurring Revenue (ARR)** reached **$286.7 million**, a total growth of **49% YoY**, which includes 16% organic growth[4](index=4&type=chunk) - Quarterly subscription service revenues increased by **60% year-over-year**, with organic growth accounting for 21% of the increase[4](index=4&type=chunk) **Subscription Service Product Line KPIs (as of Q2 2025)** | Product Line | ARR | Active Sites | | :--- | :--- | :--- | | **Engagement Cloud** | $167.5 million | 119.1 thousand | | **Operator Cloud** | $119.2 million | 57.4 thousand | [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The financial statements reflect revenue growth driven by subscription services and a reduced operating loss despite higher growth-related expenses [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows total assets of $1.39 billion, with an increase in goodwill and total liabilities as of June 30, 2025 **Selected Balance Sheet Data (in thousands)** | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $85,122 | $108,117 | | Total current assets | $219,291 | $218,046 | | Goodwill | $906,361 | $887,459 | | Total Assets | $1,391,740 | $1,380,727 | | 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=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statement of operations details a 43.8% revenue increase in Q2, an expanded gross margin, and an improved net loss per share **Selected Statement of Operations Data (in thousands)** | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Subscription service revenue | $71,903 | $44,872 | | Total revenues, net | $112,404 | $78,150 | | 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 - Continuing operations | $(0.52) | $(0.69) | [Non-GAAP Financial Measures and Reconciliations](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) Non-GAAP measures show a significant positive trend, with Adjusted EBITDA improving by $9.9 million and a return to positive Non-GAAP net income per share - The company uses non-GAAP measures to provide a clearer view of core operating performance by excluding certain non-cash or non-recurring items[20](index=20&type=chunk)[22](index=22&type=chunk) [Reconciliation of Net Loss to Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) A GAAP net loss of $21.0 million was reconciled to a positive Adjusted EBITDA of $5.5 million, a significant turnaround from the prior year **Reconciliation of Net Loss to Adjusted EBITDA (in thousands)** | Line Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net loss from continuing operations | $(21,040) | $(23,587) | | Depreciation and amortization | $12,415 | $8,834 | | Stock-based compensation | $7,887 | $6,286 | | Other adjustments (Interest, Taxes, etc.) | $6,279 | $3,039 | | **Adjusted EBITDA** | **$5,541** | **$(4,348)** | [Reconciliation of GAAP to Non-GAAP Diluted Net (Loss) Income Per Share](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Diluted%20Net%20(Loss)%20Income%20Per%20Share) The company adjusted a GAAP diluted net loss per share of ($0.52) to a Non-GAAP diluted net income per share of $0.03 for Q2 2025 **Reconciliation of GAAP to Non-GAAP Diluted EPS** | Line Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Diluted net loss per share from continuing operations | $(0.52) | $(0.69) | | Acquired intangible assets amortization | $0.24 | $0.20 | | Stock-based compensation | $0.19 | $0.18 | | Other adjustments | $0.12 | $(0.08) | | **Non-GAAP diluted net income (loss) per share** | **$0.03** | **$(0.23)** | [Reconciliation of GAAP to Non-GAAP Subscription Service Gross Margin](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Subscription%20Service%20Gross%20Margin) The Non-GAAP subscription service gross margin remained stable at 66.4%, indicating consistent underlying profitability for the segment **Reconciliation of Subscription Service Gross Margin Percentage** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | GAAP Subscription Service Gross Margin % | 55.3% | 53.1% | | Adjustments (Depreciation & Amortization, etc.) | +11.1% | +13.3% | | **Non-GAAP Subscription Service Gross Margin %** | **66.4%** | **66.4%** | [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The company cautions that this report contains forward-looking statements subject to risks and uncertainties that may cause actual results to differ - The report contains forward-looking statements regarding future performance which are subject to risks and are not guarantees of future results[13](index=13&type=chunk) - Key risks include challenges in product development, customer retention, acquisition integration, and macroeconomic or geopolitical factors[14](index=14&type=chunk)

Core Viewpoint - PAR Technology (PAR) has shown a 6.8% increase in stock price over the past four weeks, with a mean price target of $87.38 indicating a potential upside of 33.5% from the current price of $65.46 [1] Group 1: Price Targets and Analyst Estimates - The mean estimate consists of eight short-term price targets with a standard deviation of $10.27, indicating variability among analysts; the lowest estimate suggests a 0.7% decline, while the highest predicts a 52.8% increase to $100 [2] - A tight clustering of price targets, represented by a low standard deviation, suggests a high degree of agreement among analysts regarding the stock's price movement direction [9] - The Zacks Consensus Estimate for the current year has increased by 15% over the past month, with one estimate rising and no negative revisions [12] Group 2: Analyst Optimism and Earnings Prospects - Analysts show growing optimism regarding PAR's earnings prospects, as indicated by strong agreement in revising EPS estimates higher, which correlates with potential stock price increases [11] - PAR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, suggesting a solid potential upside [13] Group 3: Caution on Price Targets - Solely relying on consensus price targets for investment decisions may not be wise, as analysts' ability to set unbiased targets has been questioned [3] - Empirical research indicates that price targets often mislead investors rather than guide them accurately [7] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8]

Summary of PAR Technology Conference Call Company Overview - **Company**: PAR Technology Corporation - **Industry**: Restaurant Technology Solutions - **Focus**: Development of a comprehensive SaaS platform for enterprise restaurants, including POS systems, online ordering, and loyalty programs [2][5][15] Key Points and Arguments 1. **Sales Momentum**: PAR has experienced strong sales momentum in the enterprise restaurant landscape, with expectations for profit and free cash flow to ramp quickly as large contracts go live [2][24] 2. **Unified Experience**: The company aims to simplify restaurant operations by integrating various technologies into a unified platform, addressing the complexity of managing multiple point solutions [6][12][15] 3. **Market Position**: PAR serves a diverse range of clients from emerging chains to established brands, leveraging a strong reputation built over 40 years [7][8] 4. **Technology Integration Challenges**: The restaurant industry faces challenges with point-to-point integrations, leading to operational inefficiencies. PAR's platform aims to solve these issues by providing a cohesive solution [9][31] 5. **Acquisition Strategy**: PAR has a focused M&A strategy aimed at acquiring best-in-class products to fill product gaps and enhance their existing offerings [19][20] 6. **Growth in Convenience Stores**: The company is expanding into the convenience store market, which is growing rapidly in food service offerings, with a projected growth rate of 14-15% annually [22][53] 7. **International Expansion**: PAR is pursuing international opportunities, particularly as U.S. brands expand overseas, and has acquired companies to facilitate this growth [47][48] 8. **Customer References**: Strong customer references from well-known brands like Burger King and Sweetgreen are crucial for PAR's sales strategy, as they enhance credibility and attract new clients [38][39] 9. **Operational Efficiency**: The company has maintained flat operating expenses while investing in R&D and sales, optimizing its cost structure to maximize leverage [66][70] 10. **Future Outlook**: PAR anticipates continued growth driven by cross-selling opportunities, international expansion, and the digital transformation of the food service industry [24][25][64] Additional Important Insights - **Customer Experience Focus**: PAR emphasizes the importance of delivering a superior customer experience, which is critical for retaining clients and driving upsell opportunities [12][40] - **Cultural Values**: The company has a unique culture focused on urgency, ownership, and speed, which is integral to its operational success [27][28] - **Digital Transformation**: The restaurant industry is still in the early stages of digital transformation, presenting significant growth opportunities for PAR [25][57] - **Product Development**: The company is committed to continuous product improvement and innovation, ensuring that it remains competitive in the rapidly evolving tech landscape [26][66] This summary encapsulates the key points discussed during the PAR Technology conference call, highlighting the company's strategic direction, market challenges, and growth opportunities.

Group 1 - PAR Technology (PAR) shares have increased by 26.2% over the past four weeks, closing at $69.21, with a mean price target of $87.38 indicating a potential upside of 26.3% [1] - The average price targets from analysts range from a low of $65 to a high of $100, with a standard deviation of $10.27, suggesting variability in estimates [2] - Analysts show strong agreement on PAR's ability to report better earnings than previously predicted, which supports the potential for stock upside [4][11] Group 2 - The Zacks Consensus Estimate for PAR has increased by 15% due to one upward revision in earnings estimates over the last 30 days, with no negative revisions [12] - PAR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for near-term upside [13]

Summary of PAR Technology FY Conference Call (May 13, 2025) Company Overview - **Company**: PAR Technology - **Industry**: Restaurant technology and software solutions - **Core Business**: Provides an end-to-end software platform for managing enterprise restaurant workflows, including point of sale, loyalty, online ordering, and back office solutions [2][4][5] Key Points and Arguments Product Portfolio and Strategy - PAR has expanded its product offerings significantly, focusing on four key areas: point of sale, back office, loyalty, and online ordering [4] - The company aims to enhance customer value by integrating products, making it easier for clients to adopt multiple solutions [12][14] - The payments segment is growing rapidly, with innovative features like a digital wallet program that integrates loyalty and payment functionalities [6][7][8][9] Market Position and Sales Strategy - The sales strategy has shifted towards multi-product deals, with nearly all recent contracts involving multiple solutions [10][11] - The company has successfully landed major clients like Burger King and Wendy's, leveraging its growing reputation and referenceable customer base [19][20] Financial Performance and Growth Outlook - PAR's weighted pipeline is reported to be the strongest ever, driven by cross-selling opportunities and a diverse customer base [22][23] - The company anticipates strong growth in 2025 and beyond, as restaurants increasingly digitize their operations [24] Industry Trends and Consumer Behavior - There is a slight decline in restaurant traffic, but technology spending remains stable, particularly in loyalty and back office solutions [28][31] - In a recessionary environment, PAR expects to benefit from increased demand for loyalty programs and back office efficiency tools [32][35][36] Competitive Landscape - Key competitors include Oracle (Micros), NCR, and Toast, with PAR differentiating itself through a comprehensive suite of integrated products [38][39][40] - The company believes that its focus on product quality and customer value will help it outperform competitors who may rely on price cuts [77][80] Total Addressable Market (TAM) and Market Penetration - The estimated TAM for PAR in the U.S. and Canada is between $3.5 billion and $6 billion, with less than 10% market penetration in software revenues [49][50] - The loyalty segment is a stronghold for PAR, growing at 18%, while there is significant room for growth in POS and back office solutions [51][52] Mergers and Acquisitions - Recent acquisitions include Stuzo and Task, aimed at expanding into convenience stores and international markets, respectively [54][58] - The integration of these acquisitions is progressing well, with expectations of leveraging existing customer relationships for growth [56][60] Financial Management and Profitability - PAR focuses on maintaining a balance between growth and margin expansion, with a goal of achieving higher EBITDA margins over time [69][71] - The company has demonstrated strong operating leverage, with significant EBITDA improvement driven by organic growth [72][74] Additional Insights - The resilience of the restaurant technology sector is highlighted, with historical performance during economic downturns suggesting continued demand for PAR's solutions [37][85] - PAR's ambition extends beyond restaurant technology, aiming to build a platform that serves the broader food service industry [86][87]

Financial Performance - Total revenues for Q1 2025 reached $103.859 million, a 48.4% increase from $70.073 million in Q1 2024[17] - Subscription service revenue grew to $68.410 million, up 78.5% from $38.379 million year-over-year[17] - The company reported a net loss of $24.350 million for Q1 2025, compared to a net loss of $18.288 million in Q1 2024[19] - Gross margin improved to $48.342 million, representing a gross margin percentage of approximately 46.5%[17] - Operating expenses increased to $64.092 million, up 21.5% from $52.801 million in the same quarter last year[17] - Adjusted EBITDA improved by $14,700,000 year-over-year, indicating a positive trend in operational performance[96] - The net loss for Q1 2025 was $24,350,000, compared to a net loss of $18,288,000 in Q1 2024, representing an increase in loss of $6,062,000[86] - The company reported a net loss from continuing operations of $23.5 million for the three months ended March 31, 2025, compared to a net loss of $19.8 million in 2024[68] Cash Flow and Liquidity - Cash used in operating activities for continuing operations was $17,171 thousand for the three months ended March 31, 2025, compared to $24,025 thousand for the same period in 2024, showing a decrease in cash used of about 29%[24] - Cash and cash equivalents decreased to $91.652 million from $108.117 million at the end of 2024, a decline of 15.2%[15] - Total cash and cash equivalents and cash held on behalf of customers decreased to $109,711 thousand as of March 31, 2025, down from $121,545 thousand at the end of 2024, representing a decline of approximately 9.7%[32] - Cash provided by financing activities was $10.7 million in Q1 2025, down from $190.8 million in Q1 2024, mainly due to the repayment of $90 million under the Credit Facility[137] - The company expects available cash and cash equivalents to be sufficient to meet operating needs for at least the next 12 months[138] Debt and Financing - Long-term debt increased to $392.270 million, up from $368.355 million at the end of 2024, indicating a rise of 6.4%[15] - The principal amount of long-term debt as of March 31, 2025, was $400,000,000, with total notes payable at $392,270,000[79] - The company completed a private offering of $115.0 million in Convertible Senior Notes due 2030, with a 1.00% interest rate[76] - The company incurred a loss of $5.8 million on debt extinguishment after repaying $90.0 million under its former credit facility[77] Acquisitions and Investments - The GoSkip Asset Acquisition was completed for approximately $4.8 million, aimed at expanding the company's retail product offerings[41] - The Delaget Acquisition involved a total purchase consideration of $125.1 million, including $16.9 million in cash and equity consideration valued at $108.2 million[48] - The TASK Group Acquisition was completed for a total consideration of $245.5 million, which included $131.5 million in cash and 2,163,393 shares of common stock[59] - The company reported additional revenues of $11.8 million from the Stuzo Acquisition and $11.6 million from the TASK Group Acquisition for the three months ended March 31, 2025[67] Revenue Recognition and Deferred Revenue - Deferred revenue increased to $31.1 million as of March 31, 2025, from $24.7 million at December 31, 2024, reflecting a growth of 25.5%[37] - The company recognized $11.4 million in revenue from deferred revenue at the beginning of the period for Q1 2025, compared to $2.7 million for Q1 2024, indicating a significant increase in revenue recognition[38] Operational Metrics - Total Annual Recurring Revenue (ARR) reached $282.1 million as of March 31, 2025, a 51.9% increase from $185.7 million in 2024[126] - Active sites for Engagement Cloud increased to 120.6 thousand in Q1 2025, up 30.1% from 92.7 thousand in Q1 2024[128] - Active sites for Operator Cloud surged to 59.0 thousand in Q1 2025, an increase of 118.5% from 27.0 thousand in Q1 2024[128] - The company reported an organic ARR growth of 18.1% in Engagement Cloud and 18.0% in Operator Cloud for Q1 2025[126] Stock-Based Compensation - The company reported stock-based compensation of $7,181 thousand for the three months ended March 31, 2025, compared to $4,410 thousand for the same period in 2024, reflecting an increase of about 63%[24] - Stock-based compensation expense totaled $7,181,000 in Q1 2025, up from $4,410,000 in Q1 2024, marking a 62.5% increase[80] - The aggregate unrecognized compensation expense related to unvested equity awards was $66,700,000, expected to be recognized from fiscal years 2025 through 2028[81] Other Financial Metrics - The company experienced a foreign currency translation adjustment of $4.254 million in Q1 2025, compared to a loss of $2.714 million in Q1 2024[19] - The company incurred a loss on debt extinguishment amounting to $5,791 thousand during the three months ended March 31, 2025[24] - The estimated future amortization of intangible assets totals $222.2 million, with $33.1 million expected for the remaining part of 2025[75] - The company recognized $20.7 million in deferred tax liabilities primarily related to intangible assets at the time of the TASK Group Acquisition[66]

Financial Data and Key Metrics Changes - The company reported revenues of $104 million in Q1, an increase of over 48% year over year [6][29] - Significant services revenue increased by 78% to $68.4 million, with 20% organic growth compared to Q1 2024 [6][30] - Total Annual Recurring Revenue (ARR) was $282 million, growing 52% year over year, including 18% organic growth [6][30] - Non-GAAP gross profit grew organically by nearly 35% year over year, with subscription service gross margins exceeding 69% [7][28] - Adjusted EBITDA for the quarter was $4.5 million, a nearly $15 million improvement from Q1 last year [7][29] Business Line Data and Key Metrics Changes - Total Operator Solutions ARR grew 49% in the quarter, with organic growth at 18% [8][30] - Engagement Cloud ARR increased by 54%, driven by excellent gross retention of over 95% [17][30] - Hardware revenue increased by 20% to $22 million, driven by demand from Tier 1 enterprise customers [31][32] Market Data and Key Metrics Changes - The company signed five new PAR POS customers in Q1, all multi-product deals, indicating a healthy operational buying environment [9][10] - The TASC platform pipeline reached a record high, showing strong demand for back office solutions [10][11] Company Strategy and Development Direction - The company is focused on multi-product deals, which significantly increase lifetime value without additional acquisition costs [9][10] - The strategy emphasizes integrating acquired products to enhance customer value and drive revenue growth [43][44] - The company plans to continue investing in both organic and inorganic growth opportunities, particularly in the retail and convenience sectors [21][94] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 20% organic growth for the year, with expectations for a strong ramp-up in the second half [51][52] - The company is prepared to navigate macroeconomic uncertainties and believes that technology adoption will be crucial for customers [45][46] - Management highlighted the importance of maintaining a long-term focus on maximizing customer lifetime value [46][47] Other Important Information - The company has strategically reduced reliance on China for hardware sourcing, mitigating tariff impacts [22][39] - Cash and cash equivalents stood at $92 million as of March 31, with expectations for improved operating cash flow for the remainder of the year [37][38] Q&A Session Summary Question: Growth cadence across the next three quarters - Management targets 20% plus organic growth for the year, with gradual growth expected in Q2 and a significant pickup in Q3 and Q4 due to new deals [51] Question: Details on new multi-product wins - Five new POS deals were won in Q1, with a strong pipeline replenished for future growth [54][56] Question: Impact of foreign exchange on ARR - The decrease in reported ARR was primarily due to foreign exchange adjustments from international revenue [60][61] Question: Competitive environment and RFP processes - Management feels confident in their competitive position, particularly in table service deals, and continues to win Tier 1 deals at a high rate [71][72] Question: Cross-sell opportunities and pipeline - The potential for cross-sell is significant, with a 4x revenue opportunity if all products were adopted by every customer [76][80] Question: Tariff exposure and hardware turnover - The company has reduced tariff exposure and is managing hardware turnover effectively, with a focus on maintaining competitive pricing [102][104]

Financial Data and Key Metrics Changes - The company reported revenues of $104 million in Q1 2025, an increase of over 48% year over year [5][29] - Significant services revenue increased by 78% to $68.4 million, with 20% organic growth compared to Q1 2024 [5][30] - Total Annual Recurring Revenue (ARR) was $282 million, growing 52% year over year, including 18% organic growth [5][30] - Non-GAAP gross profit grew organically by nearly 35% year over year, with subscription service gross margins exceeding 69% [6][28] - Adjusted EBITDA improved to $4.5 million, a nearly $15 million increase from Q1 last year [6][29] Business Line Data and Key Metrics Changes - Total Operator Solutions ARR grew 49% in the quarter, with organic growth at 18%, totaling $117 million [7][30] - Engagement Cloud ARR increased by 54%, driven by excellent gross retention of over 95% [16][30] - Hardware revenue rose by 20% to $22 million, driven by demand from Tier one enterprise customers [31][32] Market Data and Key Metrics Changes - The company signed five new PAR POS customers in Q1, all multi-product deals, indicating a healthy operational buying environment [8][10] - The TASC platform pipeline reached a record high, showing strong traction in the market [10][11] Company Strategy and Development Direction - The company continues to focus on multi-product deals, which enhance customer lifetime value without additional acquisition costs [9][10] - The integration of acquired products is seen as a key driver for growth, with a focus on creating value through technology integration [42][94] - The company is prepared to be aggressive in pursuing future M&A opportunities that fit within its product strategy [94] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 20% organic growth for the year, with expectations for a strong ramp-up in the second half of 2025 [50][51] - The company is monitoring macroeconomic pressures and believes that demand for its products remains strong despite potential slowdowns in the market [45][46] - Management highlighted the importance of technology adoption in the restaurant and foodservice sectors to combat traffic slowdowns [44] Other Important Information - The company has strategically reduced reliance on China for hardware sourcing, with hardware now comprising only 21% of revenues [21][22] - Cash and cash equivalents stood at $92 million as of March 31, 2025, with cash used in operating activities decreasing from the prior year [37][38] Q&A Session Summary Question: Growth cadence across the next three quarters - Management targets 20% organic growth for the year, with expectations for a significant pickup in Q3 and Q4 due to new deals and POS rollouts [50][51] Question: Details on new multi-product wins - Five new POS deals were won in the quarter, with a strong pipeline replenished for future growth [52][54] Question: Impact of foreign exchange on ARR - The adjustments in ARR were primarily due to foreign exchange impacts from international acquisitions [60][61] Question: Competitive environment and RFP processes - Management feels confident in their competitive position, particularly in table service deals, and continues to win Tier one deals at a high rate [71][72] Question: Cross-sell opportunities and ARPU - The potential for cross-sell is significant, with a 4x revenue opportunity if all products were adopted by every customer [76][78] Question: Durability of ARR growth - Management sees strong revenue growth potential from deals won, with implementation timelines varying from six months to two years [85][86]

Financial Performance - PAR's Q1 2025 total ARR reached $282.1 million[12,48] - The company achieved 18% organic ARR growth year-over-year[18,24] - Total ARR growth was 52% year-over-year[25,39] - Non-GAAP subscription service gross margin percentage improved to 69.1% in Q1 2025, up from 65.7% in Q1 2024, a 340 basis point increase[18,32,41] - Non-GAAP consolidated gross margin percentage increased by 860 basis points year-over-year to 54.2%[33,42] - Adjusted EBITDA was $4.5 million in Q1 2025, a $14.7 million increase from Q1 2024's $(10.201) million[18,39,44] - Subscription service revenue increased by 78% from $38.379 million in Q1 2024 to $68.410 million in Q1 2025[36,39] Business Growth & Strategy - Operator Cloud ARR grew by 49% year-over-year[28] - Engagement Cloud ARR grew by 54% year-over-year[29] - The company emphasizes cross-selling to leverage revenue opportunities[18] - Strategic M&A activities, including acquisitions of PAR Retail, TASK Group, and Delaget, have expanded PAR's total addressable market (TAM)[18]

FOR RELEASE: CONTACT: Exhibit 99.1 New Hartford, NY, May 9, 2025 Christopher R. Byrnes (315) 743-8376 chris_byrnes@partech.com, www.partech.com PAR TECHNOLOGY CORPORATION ANNOUNCES FIRST QUARTER 2025 RESULTS New Hartford, NY - May 9, 2025 -- PAR Technology Corporation (NYSE: PAR) ("PAR Technology" or the "Company") today announced its financial results for the first quarter ended March 31, 2025. "PAR delivered another strong quarter, driven by our Better Together software thesis coming to fruition, and the ...