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

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

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

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

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]