PAR Technology (PAR) Traded Lower Due to a Drop in Annual Recurring Revenue

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]