Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $119 million, representing a 23% increase year-over-year, driven by software subscription and hardware revenue growth [4][19] - Adjusted EBITDA for Q3 was $5.8 million, an improvement of $3.4 million compared to the same period in 2024 [20][29] - Non-GAAP net income for Q3 was $2.5 million, or $0.06 earnings per share, compared to a non-GAAP net loss of $3.1 million in the prior year [20][29] - Non-GAAP operating expenses as a percentage of total revenue improved to 43.4%, a 590 basis point improvement from the prior year [27][29] Business Line Data and Key Metrics Changes - Annual Recurring Revenue (ARR) reached $298.4 million, up 15% organically, with Operator Cloud ARR increasing 31% year-over-year [5][21] - Engagement Cloud ARR grew 16% year-over-year, including 15% organic growth [9][21] - Hardware revenue for the quarter was $30 million, a 32% increase from the prior year [23] Market Data and Key Metrics Changes - The company expanded its international functionality, onboarding a Burger King franchisee in Canada, showcasing its ability to serve global customers [8] - The company reported a record backlog and customer commitments, indicating strong future growth potential [8][32] Company Strategy and Development Direction - The company aims to leverage AI to enhance operational efficiency and customer engagement, with the launch of Coach AI as a key innovation [14][16] - The long-term strategy includes becoming the leading enterprise technology provider for restaurants and convenience stores, with a focus on multi-product deals and cross-selling [30][31] - The company is pursuing aggressive M&A opportunities in a buyer's market, focusing on accretive deals that enhance growth [30][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing increased visibility from signed deals and a robust pipeline for Q4 and beyond [36][70] - The company noted that despite macroeconomic challenges, investments in technology are increasing among customers, indicating a shift towards more integrated solutions [39] - Management highlighted the importance of loyalty programs in maintaining margins during sales slowdowns, indicating a strong demand for such solutions [60] Other Important Information - The company reported a positive operating cash flow of $8 million for Q3, indicating improved cash generation capabilities [28][29] - The company is focused on maintaining a flat cost base while driving operational leverage through AI utilization [4][27] Q&A Session Summary Question: What changed between Q2 and Q3 that increased confidence? - Management noted that more signed deals and a filled backlog provided greater visibility for future growth [36] Question: Is the company considering M&A given the current market conditions? - Management indicated an opportunistic approach to M&A, focusing on accretive deals while being cautious with share usage [38][66] Question: How has the recent market environment impacted customer decision-making? - Management observed that while there was a slowdown in the first half of the year, RFP activity has increased, and investments in technology are rising [39] Question: What is the status of the Task business rollout? - Management confirmed that the rollout is planned for 2026, transitioning from RFP to actual development [42] Question: Can you elaborate on the growth potential in loyalty programs? - Management emphasized that loyalty is becoming essential for maintaining margins and that there is significant growth potential in both restaurants and convenience stores [60]

Core Insights - PAR Technology has launched the PAR AI intelligence suite, which includes an intelligent assistant called Coach AI aimed at enhancing restaurant operations through actionable insights [1][4] - The integration of AI features into PAR's existing offerings, such as POS and loyalty systems, does not require new applications or technical training, streamlining operations for users [2][3] - Coach AI allows users to ask natural language questions and retrieves live data from various sources, presenting visualizations and key performance indicators without needing to switch platforms [3][6] Product Features - Coach AI is designed for area coaches and managers, providing instant answers and reducing the need for human intervention in data analysis [2][4] - A marketing intelligence assistant is planned for release in fall 2025, which will utilize conversational AI to provide insights on campaign performance and customer engagement [3][4] - The AI suite aims to automate workflows intelligently, enhancing efficiency and driving unique outcomes in restaurant operations [5][6] Future Developments - PAR Technology's vision includes a future where AI not only powers tasks but also anticipates and adapts to business needs, leading to a smarter and more agile restaurant experience [5][6] - The introduction of PAR Engagement in June 2025 is part of the company's strategy to empower enterprise restaurants to engage better with guests and streamline operations [6]

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]