PAR Technology delivered a robust third quarter, with revenue and non-GAAP profit both exceeding Wall Street expectations and a positive market reaction following the release. Management cited software subscription growth and strong execution in hardware deployments as key drivers of the quarter. CEO Savneet Singh pointed to the success of enterprise-scale rollouts, notably with large quick-service restaurant clients, and highlighted the company’s operational discipline, saying, "Our commitment to a flat cost base also played out," resulting in improved operating leverage and ongoing cash flow gains.
Is now the time to buy PAR? Find out in our full research report (it’s free for active Edge members).
PAR Technology (PAR) Q3 CY2025 Highlights:
- Revenue: $119.2 million vs analyst estimates of $112.6 million (23.2% year-on-year growth, 5.8% beat)
- Adjusted EPS: $0.06 vs analyst estimates of -$0.02 (significant beat)
- Adjusted EBITDA: $5.84 million vs analyst estimates of $5.76 million (4.9% margin, 1.5% beat)
- Operating Margin: -14.8%, in line with the same quarter last year
- Annual Recurring Revenue: $298.4 million vs analyst estimates of $303.9 million (21.9% year-on-year growth, 1.8% miss)
- Market Capitalization: $1.59 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From PAR Technology’s Q3 Earnings Call
- Samad Samana (Jefferies) asked what gave management increased confidence in visibility for future growth. CEO Savneet Singh explained that deal signings have outpaced rollouts, leading to a replenished backlog and stronger outlook for upcoming quarters.
- Samad Samana (Jefferies) inquired about the potential for renewed M&A activity. Singh replied that the company will be opportunistic, targeting compressed valuation assets that are accretive without diluting existing shareholders.
- Mayank Tandon (Needham) questioned the shift in organic ARR growth targets from 20% to mid-teens. Singh clarified that slower growth in the first half of the year limited 2025 upside, but momentum is expected to recover in 2026 and beyond.
- George Sutton (Craig-Hallum) asked about the timing and scale of TASK rollouts and large RFPs. Singh stated that while development has started for a major Tier 1 opportunity, more details will be shared as implementation progresses.
- Adam Wyden (ADW Capital) pressed on whether future acquisitions would be immediately accretive to growth. Singh confirmed that any M&A would be intended to accelerate the existing growth trajectory without compromising profitability.
Catalysts in Upcoming Quarters
In the coming quarters, our team will watch for (1) continued adoption and expansion of AI-driven features across PAR’s platform, (2) the pace at which large enterprise and Tier 1 contracts convert from backlog to revenue, and (3) the normalization of hardware and professional service margins as tariff-related pricing adjustments take effect. Progress on cross-selling initiatives and further clarity on potential M&A will also be key signposts.
PAR Technology currently trades at $39.23, up from $33.21 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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