PAR(PAR) - 2025 Q2 - Quarterly Results

PAR Technology Corporation Q2 2025 Earnings Release Financial & Operational Highlights 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] Q2 2025 Performance vs. Q2 2024 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 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) 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] - Quarterly subscription service revenues increased by 60% year-over-year, with organic growth accounting for 21% of the increase[4] 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 The financial statements reflect revenue growth driven by subscription services and a reduced operating loss despite higher growth-related expenses Condensed Consolidated Balance Sheets 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 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 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][22] Reconciliation of Net Loss to Adjusted EBITDA 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 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 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 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] - Key risks include challenges in product development, customer retention, acquisition integration, and macroeconomic or geopolitical factors[14]