PAR(US:PAR)2025-11-06 22:24Financial Performance - Total revenues for Q3 2025 reached $119.2 million, a 23.1% increase from $96.8 million in Q3 2024[17] - Subscription service revenue grew to $74.8 million, up 24.5% from $59.9 million year-over-year[17] - Net loss for Q3 2025 was $18.2 million, compared to a net loss of $19.8 million in Q3 2024, showing a slight improvement[19] - The company reported a comprehensive loss of $29.0 million for Q3 2025, compared to a comprehensive loss of $16.0 million in Q3 2024[19] - For the nine months ended September 30, 2025, the company reported a net loss of $63.57 million compared to a net income of $16.07 million in the same period of 2024[25] - The company reported a net loss of $24,350,000 for the quarter ending March 31, 2025, and a net loss of $21,040,000 for the quarter ending June 30, 2025[21] - The company experienced a net income of $54,190,000 for the quarter ending June 30, 2024, following a net loss of $18,288,000 for the quarter ending March 31, 2024[23] - The company reported a net loss of $19,832,000 for the quarter ending September 30, 2024[23] Revenue Breakdown - Total revenues for the nine months ended September 30, 2025, were $335.4 million, an increase of $90.5 million or 36.9% compared to $244.9 million for the same period in 2024[108] - Subscription service revenues for the nine months ended September 30, 2025, were $215.1 million, an increase of $71.9 million or 50.2% compared to $143.2 million for the same period in 2024[109] - Hardware revenues for the nine months ended September 30, 2025, were $78.6 million, an increase of $17.6 million or 28.9% compared to $61.0 million for the same period in 2024[110] - Subscription service revenue for the three months ended September 30, 2025, was $74,763,000, up from $59,909,000 in the same period of 2024, representing a year-over-year increase of 24.5%[42] - Hardware revenue increased by 32.0% year-over-year to $29.9 million, accounting for 25.1% of total revenue[100] Expenses and Costs - Research and development expenses for Q3 2025 were $19.3 million, an increase of 8.1% from $17.8 million in Q3 2024, highlighting ongoing investment in innovation[17] - Operating expenses for the nine months ended September 30, 2025, totaled $199.3 million, an increase of 21.7% compared to $163.8 million for the same period in 2024[108] - General and administrative expenses for the nine months ended September 30, 2025, rose by $14.8 million or 19.0% to $92.7 million from $77.9 million in 2024[124] - Sales and marketing expenses for the nine months ended September 30, 2025, increased by $5.3 million or 17.0% to $36.5 million from $31.2 million in 2024[121] - Stock-based compensation expenses amounted to $7,181,000 for the quarter ending June 30, 2025, and $5,937,000 for the quarter ending September 30, 2024[21][23] Assets and Liabilities - Total current assets increased to $227.1 million as of September 30, 2025, compared to $218.0 million at the end of 2024[15] - Total liabilities rose to $539.3 million, up from $509.0 million at the end of 2024, indicating increased financial obligations[15] - Cash and cash equivalents decreased to $92.5 million from $108.1 million at the end of 2024, reflecting cash outflows[15] - Goodwill increased to $898.5 million as of September 30, 2025, from $887.5 million at the end of 2024, indicating potential acquisitions or business growth[15] - As of September 30, 2025, total shareholders' equity stands at $838,049,000, with an accumulated deficit of $343,510,000[21] Acquisitions and Investments - The company acquired GoSkip for approximately $4.8 million to enhance its PAR Retail product offerings, focusing on self-checkout solutions[43] - The Delaget Acquisition was completed for a total consideration of $125.1 million, which included $16.9 million in cash and equity consideration valued at $108.2 million[50] - Goodwill from the Delaget Acquisition was preliminarily valued at $97.954 million, reflecting expected synergies from the acquisition[56] - The company incurred acquisition expenses of approximately $0.6 million related to the GoSkip Asset Acquisition, which were capitalized as part of the asset cost[45] Cash Flow and Financing - Cash used in operating activities for continuing operations was $15.41 million, a decrease from $24.44 million in the prior year[25] - The company experienced a net cash decrease of $14.65 million in cash and cash equivalents, ending the period with $106.89 million compared to $121.07 million at the end of the previous year[27] - Cash used in investing activities significantly decreased to $10.9 million for the nine months ended September 30, 2025, compared to $178.1 million for the same period in 2024[164] - Cash provided by financing activities was $11.5 million for the nine months ended September 30, 2025, down from $279.3 million for the same period in 2024[165] - The company raised $194,490,000 from a private placement of common stock, net of issuance costs of $5.5 million[23] Market and Customer Insights - The U.S. market contributed $98.2 million in revenue for Q3 2025, up from $81.6 million in Q3 2024, while international revenue increased to $21.0 million from $15.1 million[84] - McDonald's Corporation accounted for 23% of total revenues in Q3 2025, up from 18% in Q3 2024, highlighting the importance of this customer[85] Risk and Compliance - The company does not believe it has any pending litigation that would have a material adverse effect on its financial condition or results of operations[178] - There have been no material changes to the Risk Factors described in the 2024 Annual Report[179] - The company's management evaluated the effectiveness of disclosure controls and procedures as of September 30, 2025, concluding they were effective[175] - There were no changes in internal control over financial reporting during the quarter ended September 30, 2025, that materially affected the internal control over financial reporting[176]