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]

Earnings Presentation November 6, 2025 NYSE: PAR partech.com Q3 2025 Forward-Looking Statements. This presentation contains forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, Section 27A of the Securities Act of 1933, as amended, and the Private Securities Litigation Reform Act of 1995, and the accuracy of such statements is necessarily subject to risks, uncertainties and assumptions as to future events that may not prove ...

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]

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]

Financial Performance - PAR's Q1 2025 total ARR reached $282.1 million[12,48] - The company achieved 18% organic ARR growth year-over-year[18,24] - Total ARR growth was 52% year-over-year[25,39] - Non-GAAP subscription service gross margin percentage improved to 69.1% in Q1 2025, up from 65.7% in Q1 2024, a 340 basis point increase[18,32,41] - Non-GAAP consolidated gross margin percentage increased by 860 basis points year-over-year to 54.2%[33,42] - Adjusted EBITDA was $4.5 million in Q1 2025, a $14.7 million increase from Q1 2024's $(10.201) million[18,39,44] - Subscription service revenue increased by 78% from $38.379 million in Q1 2024 to $68.410 million in Q1 2025[36,39] Business Growth & Strategy - Operator Cloud ARR grew by 49% year-over-year[28] - Engagement Cloud ARR grew by 54% year-over-year[29] - The company emphasizes cross-selling to leverage revenue opportunities[18] - Strategic M&A activities, including acquisitions of PAR Retail, TASK Group, and Delaget, have expanded PAR's total addressable market (TAM)[18]