Group 1 - TimesSquare Capital Management's "U.S. Small Cap Growth Strategy" reported a gross return of 2.26% and a net return of 2.01% for Q3 2025, significantly underperforming the Russell 2000 Growth Index, which returned 12.19% [1] - The fund's top five holdings were highlighted, indicating its best investment picks for 2025 [1] Group 2 - PAR Technology Corporation (NYSE:PAR) provides omnichannel cloud-based hardware and software solutions for the restaurant and retail sectors, with a one-month return of 1.86% and a 52-week loss of 47.80% [2] - As of January 5, 2026, PAR Technology's stock closed at $36.20, with a market capitalization of $1.469 billion [2] Group 3 - TimesSquare Capital expressed a preference for critical system providers and application software companies, noting that PAR Technology's performance was impacted by cautious client behavior and a decline in annual recurring revenue [3] - Despite reporting revenue and earnings in line with expectations, PAR Technology's stock experienced a -43% decline, attributed to market sentiment favoring cyclical semiconductors over software [3] Group 4 - PAR Technology's Q3 revenue increased nearly 23% to $119 million, but it is not among the 30 most popular stocks among hedge funds, with 24 hedge fund portfolios holding its shares at the end of Q3, down from 28 in the previous quarter [4] - While PAR Technology shows potential, certain AI stocks are considered to offer greater upside potential with less downside risk [4]

Company Overview - PAR Technology Corporation operates in the technology sector, providing integrated software and hardware solutions for commercial and government markets, leveraging a recurring revenue model from cloud-based services and payment processing [5] - The company reported a market capitalization of $1.48 billion and a revenue of $440.45 million for the trailing twelve months (TTM), with a net income of -$84.62 million [4] Financial Performance - PAR Technology's annual recurring revenue (ARR) reached $298.4 million, reflecting a 22% year-over-year increase, with subscription revenue climbing 25% and adjusted EBITDA turning positive at $5.8 million [8] - Despite the growth in recurring revenue, the company reported a GAAP loss of $18.2 million in the last quarter, and its stock price has declined approximately 50% over the past year [9] Market Position - As of the latest filing, PAR Technology's shares were priced at $36.51, significantly underperforming the S&P 500, which increased by about 17% in the same period [3] - The company serves a diverse client base, including restaurant chains, convenience stores, retail operators, and U.S. federal agencies, particularly within the Department of Defense [7] Strategic Insights - PAR Technology is focused on building a larger recurring revenue base, but the stock continues to trade as if execution risks outweigh its growth potential [6] - The exit of Tremblant Capital Group from its position in PAR Technology highlights investor concerns regarding the company's ability to translate ARR scale into sustainable margins [10]

Core Insights - The Wasatch Micro-Cap Fund reported a return of 9.52% in Q3 2025, underperforming the benchmark Russell Microcap® Growth Index, which returned 19.93% [1] Group 1: Fund Performance - The fund's performance was driven by a strong risk appetite among investors, particularly in microcap stocks [1] - The top five holdings of the fund were highlighted, indicating the best investment picks for 2025 [1] Group 2: PAR Technology Corporation - PAR Technology Corporation (NYSE:PAR) provides omnichannel cloud-based solutions for the restaurant and retail sectors, with a one-month return of 11.50% [2] - The stock has seen a significant decline of 52.61% over the past 52 weeks, closing at $35.78 per share on December 17, 2025, with a market capitalization of $1.45 billion [2] - The company reported nearly 23% revenue growth in Q3 2025, reaching $119 million [4] Group 3: Investment Sentiment - Despite the potential of PAR Technology Corporation, it is not among the 30 most popular stocks among hedge funds, with 24 hedge fund portfolios holding the stock at the end of Q3 2025, down from 28 in the previous quarter [4] - The company experienced organic growth in Q2 that fell short of expectations, leading the fund to exit its position during the quarter [3]

Core Insights - PAR Technology Corporation has launched Smart Passes, a wallet-native loyalty solution that integrates with Apple and Google Wallet, aiming to enhance customer engagement without the need for app downloads or logins [1][2][3] Company Overview - PAR Technology Corporation is a leading provider of foodservice technology, offering a unified platform that includes point-of-sale, digital ordering, loyalty, back-office, payments, and hardware solutions [7] Product Features - Smart Passes allows for one-tap enrollment and real-time delivery of loyalty points and offers, making it easier for guests to engage with loyalty programs [2][4] - The solution is designed to remove barriers associated with traditional loyalty programs, which often see a 70% drop-off due to cumbersome sign-up processes [3][4] Market Context - The loyalty market is projected to reach $217 billion by 2028, highlighting the need for innovative and frictionless loyalty solutions for brands to remain competitive [3] Customer Feedback - Early adopters, such as Salsarita's, report increased guest return rates and higher redemption rates due to the convenience of the app-less loyalty system [5] Availability - Smart Passes is currently available for restaurant brands, with Offer Passes set to roll out in Q1 2026 [5]

PAR Technology Corporation's ( PAR ) valuation reset earlier this year is what pulled me back in. The stock now trades near 4x revenue, and Q3 showed enough progress for me to stay constructive. ARR reached about $298 million, up 22% YoY, and subscription revenue grew 25 percentI’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 compa ...

Group 1 - PAR Technology Corporation's stock is currently trading near 4x revenue, indicating a valuation reset earlier this year that has attracted investor interest [1] - The company reported an Annual Recurring Revenue (ARR) of approximately $298 million, reflecting a year-over-year growth of 22% [1] - Subscription revenue for PAR Technology grew by 25%, showcasing strong performance in its revenue streams [1] Group 2 - The analyst emphasizes a focus on companies with strong fundamentals and real potential, particularly in the tech, infrastructure, and internet services sectors [1] - The article aims to share investment ideas and foster connections among investors who prioritize long-term returns over short-term fluctuations [1]

Company Overview - PAR Technology Corporation specializes in integrated technology solutions for the hospitality and retail industries, offering cloud-based POS platforms, customer engagement tools, and operational management solutions [6] - The company operates a dual-segment model, balancing commercial SaaS and hardware offerings with specialized government services, which supports long-term growth and resilience [6] - As of the latest report, PAR's market capitalization is $1.4 billion, with a trailing twelve-month (TTM) revenue of $440.5 million and a net income loss of $84.6 million [4] Financial Performance - In the third quarter, PAR Technology reported a 22% year-over-year increase in annual recurring revenue (ARR) to $298.4 million, with subscription revenue growing by 25% and total revenue rising by 23% [9] - The company experienced a sequential ARR increase of $11.7 million, with subscription margins holding steady at 55.3% and non-GAAP subscription margins exceeding 66% [9] - Despite these positive growth metrics, PAR Technology posted an $18.2 million quarterly loss, indicating ongoing investment in growth despite current unprofitability [10] Market Position and Sentiment - Progeny 3 increased its stake in PAR Technology by 249,923 shares during the third quarter, bringing its total position to 1.7 million shares valued at $68.6 million, which represents 3.5% of the fund's $1.9 billion in reportable U.S. equity assets [2] - PAR's stock price is currently at $34.16, down 57% over the past year, significantly underperforming the S&P 500, which has increased by approximately 12.5% during the same period [3] - The market's negative sentiment towards unprofitable software companies has affected PAR, but the increased allocation by Progeny 3 may reflect a strategic recalibration rather than a direct bet against recent weaknesses [10]

Group 1 - PAR Technology Corporation (NYSE:PAR) is rated as a Strong Buy by Wall Street analysts, with an average price target of $56.40, indicating a potential upside of 63.43% from the current price of $34.51 [1] - The company is transitioning to a unified cloud-native platform aimed at restaurants and convenience stores, as reiterated by CEO Savneet Singh [2] - PAR Technology is targeting mid-teens annual recurring revenue growth driven by its Operated Cloud Business and has a significant backlog to support revenue growth [3] Group 2 - The company is integrating artificial intelligence into its products, launching AI-powered solutions like Coach AI for back-office operations and developing AI solutions for loyalty program management [4] - PAR Technology is forming strategic partnerships with major US brands to enhance global deployments, with Erbert & Gerbert's Sandwich Shop being the latest to adopt its solutions [5] - The company provides a comprehensive technology solution for the restaurant industry, including point-of-sale (POS), loyalty programs, ordering, payments, and operations software [6]

Company Overview - The company specializes in selling software to large restaurant chains, focusing on the quick service and fast casual segments [2] - It targets two primary buyer personas: Chief Information Officers (CIOs) for point of sale and back office solutions, and Chief Digital Officers or Chief Marketing Officers (CMOs) for customer engagement software [2] Industry Trends - The foundational thesis of the company is that restaurants are increasingly becoming digital, necessitating integrated solutions rather than disjointed point solutions [3] - Historically, restaurants have purchased various standalone products for point of sale, online ordering, and loyalty programs, leading to a fragmented approach [3]

Summary of PAR's Conference Call Company Overview - **Company**: PAR Technology Corporation - **Industry**: Restaurant technology, specifically focusing on enterprise point of sale (POS) systems and customer engagement software - **Core Business**: Provides integrated software solutions for large restaurant chains, primarily in the quick service and fast casual segments [4][5][6] Key Points and Arguments Business Model and Strategy - PAR targets enterprise restaurant chains, avoiding competition with smaller market players like Toast and Square, focusing instead on legacy providers like Oracle and NCR [5][6] - The company emphasizes a holistic, integrated solution for restaurants, combining POS, back office, online ordering, and loyalty systems to enhance customer engagement and operational efficiency [4][5][9] - PAR's approach to mergers and acquisitions (M&A) is product-led, aiming to integrate new products into their existing suite to create unique customer outcomes [7][9] Market Potential - The Total Addressable Market (TAM) for enterprise restaurants in the U.S. and Canada is estimated between 300,000 to 450,000, with PAR currently servicing around 30,000 POS sites [10][11] - The loyalty market is smaller, with an estimated 100,000 to 150,000 enterprise-like chains, indicating significant growth potential for PAR [11] Industry Trends - The restaurant industry, particularly quick service restaurants (QSRs), has faced challenges in 2025, including weaker traffic and spending from low-end consumers, which has increased the demand for PAR's engagement products [12][14] - Despite these challenges, PAR has seen strong bookings, suggesting that their solutions are becoming more valuable in a tough market [12][14] Challenges for Restaurant Owners - Restaurant operators face complex supply chains, high labor turnover, and increasing compliance regulations, alongside the pressure to digitize their operations [15][16] - The need for simplicity in vendor management is critical, as many restaurants struggle with managing multiple vendors and systems [16][18] Financial Performance and Growth Expectations - PAR anticipates mid-teens organic Annual Recurring Revenue (ARR) growth, with potential to exceed 20% through winning large deals and expanding their product offerings [20][21] - Recent contract wins with major brands like Burger King and Wendy's indicate a strong pipeline and growth trajectory [25][28] M&A Activity - PAR has made strategic acquisitions, including Delegate for back office solutions, Task for international expansion, and Stuzo to enhance their presence in the convenience store market [34][35][36] - The convenience store market is estimated at around 150,000 enterprise locations, presenting a significant growth opportunity for PAR [38] Competitive Landscape - PAR differentiates itself from down-market players by focusing on the unique needs of enterprise clients, which require more complex integrations and reliable, stable products [47][48] - The company believes that down-market players may struggle to transition to the enterprise space due to the different sales motions and product requirements [49] Additional Important Insights - The company is experiencing a strong pipeline of opportunities, with a focus on large deals that could transform their business [28][30][42] - PAR's strategy includes a focus on building trust with enterprise clients through proven customer references and a clear vision for future innovation [25][26][27] This summary encapsulates the key insights from PAR's conference call, highlighting the company's strategic direction, market opportunities, and the challenges faced by the restaurant industry.