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]

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]