PAR Technology Corporation Announces First Quarter 2025 Results
PAR Technology Corporation (NYSE: PAR) (“PAR Technology” or the “Company”) today announced its financial results for the first quarter ended March 31, 2025. “PAR delivered another strong qu...
- Annual Recurring Revenue (ARR)(1) grew to $282.1 million - total growth of 52% inclusive of organic growth of 18% from $185.7 million reported in Q1 '24
- Quarterly subscription service revenues increased 78% year-over-year, inclusive of organic growth of 20% from Q1 '24
NEW HARTFORD, N.Y.: PAR Technology Corporation (NYSE: PAR) (“PAR Technology” or the “Company”) today announced its financial results for the first quarter ended March 31, 2025.
“PAR delivered another strong quarter, driven by our Better Together software thesis coming to fruition, and the resilient enterprise food-service industry,” commented Savneet Singh, PAR Technology’s CEO. “Our Operator and Engagement solutions each contributed to these solid results, evidenced by new customer wins and go-lives, resulting in a 20%+ year-over-year organic growth (78% total growth) in subscription service revenues, and an 18% increase in ARR from Q1 last year. Additionally, we continued to see accelerated adoption of multi-product deals, helping drive strong year-over-year gross margin expansion and our third consecutive quarter of positive Adjusted EBITDA.”
Q1 2025 Financial Highlights(2) |
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(in millions, except % and per share amounts) | GAAP |
| Non-GAAP(1) | ||||
Q1 2025 | Q1 2024 | vs. Q1 2024 |
| Q1 2025 | Q1 2024 | vs. Q1 2024 | |
Revenue | $103.9 | $70.1 | better 48.2% |
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Net Loss from Continuing Operations/Adjusted EBITDA | $(24.5) | $(20.4) | worse $4.2 million |
| $4.5 | $(10.2) | better $14.7 million |
Diluted Net Loss Per Share from Continuing Operations | $(0.61) | $(0.69) | better $0.08 |
| $(0.01) | $(0.47) | better $0.46 |
Subscription Service Gross Margin Percentage | 57.8% | 51.6% | better 620 bps |
| 69.1% | 65.7% | better 340 bps |
(1) See “Key Performance Indicators and Non-GAAP Financial Measures” for reconciliations and descriptions of non-GAAP financial measures to corresponding GAAP financial measures. Amounts presented in the reconciliations and other tables presented herein may not sum due to rounding. (2) Results exclude historical results from our Government segment which are reported as discontinued operations. | |||||||
The Company's key performance indicators ARR and Active Sites(1) are presented as two subscription service product lines:
- Engagement Cloud consisting of Punchh, PAR Retail (including GoSkip), PAR Ordering, and Plexure product offerings.
- Operator Cloud consisting of PAR POS, PAR Pay, PAR OPS (Data Central and Delaget), and TASK product offerings.
Highlights of Engagement Cloud - First Quarter 2025(1):
- ARR at end of Q1 '25 totaled $164.9 million
- Active Sites as of March 31, 2025 totaled 120.6 thousand
Highlights of Operator Cloud - First Quarter 2025(1):
- ARR at end of Q1 '25 totaled $117.2 million
- Active Sites as of March 31, 2025 totaled 59.0 thousand
(1) See “Key Performance Indicators and Non-GAAP Financial Measures” below.
Earnings Conference Call.
There will be a conference call at 9:00 a.m. (Eastern) on May 9, 2025, during which management will discuss the Company's financial results for the first quarter ended March 31, 2025. The conference call will be webcast live. To access the webcast, please visit the Investor Relations section of the Company's website at www.partech.com/investor-relations/. A recording of the webcast will be available on this site after the event.
About PAR Technology Corporation.
For over four decades, PAR Technology Corporation (NYSE: PAR) has been at the forefront of technology innovation in foodservice, helping businesses create exceptional guest experiences and connections. PAR’s comprehensive suite of software and hardware solutions, including point-of-sale, digital ordering, loyalty, back-office management, and payments, serves a diverse range of hospitality and retail clients across more than 110 countries. With its “Better Together” ethos, PAR continues to deliver unified solutions that drive customer engagement, efficiency, and growth, all to make it easier for PAR’s customers to manage their operations. To learn more, visit partech.com or connect with us on LinkedIn, X (formerly Twitter), Facebook, and Instagram. The PAR Technology 2025 Sustainability Report can be found at: https://partech.com/sustainability-at-par/.
Key Performance Indicators and Non-GAAP Financial Measures.
We monitor certain key performance indicators and non-GAAP financial measures in the evaluation and management of our business; certain key performance indicators and non-GAAP financial measures are provided in this press release because we believe they are useful in facilitating period-to-period comparisons of our business performance. Key performance indicators and non-GAAP financial measures do not reflect and should be viewed independently of our financial performance determined in accordance with GAAP. Key performance indicators and non-GAAP financial measures are not forecasts or indicators of future or expected results and should not have undue reliance placed upon them by investors.
Where non-GAAP financial measures are included in this press release, the most directly comparable GAAP financial measures and a detailed reconciliation between GAAP and non-GAAP financial measures is included in this press release under “Non-GAAP Financial Measures”.
Unless otherwise indicated, financial and operating data included in this press release is as of March 31, 2025.
As used in this press release,
“Annual Recurring Revenue” or “ARR” is the annualized revenue from subscription services, including subscription fees for our SaaS solutions and related software support, managed platform development services, and transaction-based payment processing services. We generally calculate ARR by annualizing the monthly subscription service revenue for all Active Sites as of the last day of each month for the respective reporting period. Our reported ARR is based on a constant currency, using the exchange rates established at the beginning of the year and consistently applied throughout the period and to comparative periods presented. For acquisitions made during each period, the constant currency rate applied is the exchange rate at the date of each acquisition's closure.
“Active Sites” represent locations active on PAR’s subscription services as of the last day of the respective reporting period.
Trademarks.
“PAR®,” “PAR POS®”, “Punchh®,” “PAR Ordering™”, "PAR OPS™," “Data Central®," “Delage™,” "PAR Retail™", "PAR® Pay”, “PAR® Payment Services”, and other trademarks identifying our products and services appearing in this press release belong to us.
Forward-Looking Statements.
This press release 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, the accuracy of such statements is necessarily subject to risks, uncertainties and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to the plans, strategies and objectives of management relating to our growth, results of operations, and financial performance, including customer retention, service and product offerings, the development, demand, market share, and competitive performance of our products and services; revenues, gross margins, expenses, cash flows, and other financial measures and key performance indicators, including ARR, Active Sites, subscription service gross margins, net loss, and net loss per share; the availability and terms of product and component supplies for our hardware products; expanding our addressable markets and cross-selling efforts; anticipated benefits of acquisitions, divestitures, and capital markets transactions; and macroeconomic trends, geopolitical events, tariffs, and trade disputes and the expected impact of those trends and events on our business, results of operations, and financial performance. These statements are neither promises nor guarantees but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements.
Factors, risks, trends and uncertainties that could cause actual results to differ materially from those expressed or implied by forward-looking statements include our ability to successfully develop or acquire and transition new products and services and enhance existing products and services to meet evolving customer needs and respond to emerging technological trends, including our effective us of artificial intelligence (AI) in product development and integration of AI tools into our product and service offerings; our ability to add and retain Active Sites and integration partners; our ability to successfully integrate acquisitions into our operations, and realize the anticipated benefits; macroeconomic trends, such as a recession or slowed economic growth, fluctuating interest rates, inflation, and changes in consumer confidence and discretionary spending; our ability to successfully expand our business or products into new markets or industries; geopolitical events, such the Russia-Ukraine war, tensions with China and between China and Taiwan, hostilities in the Middle East, including the Israel conflict(s), and uncertainty relating to new or increased tariffs or other trade restrictions implemented by the U.S. or retaliatory trade measures or tariffs implemented by other countries and our ability to retain and manage suppliers, secure alternative suppliers, and manage inventory levels and costs, navigate manufacturing disruptions or logistics challenges, shipping delays, and shipping costs; and the other factors discussed in our most recent Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.
PAR TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except share and per share amounts)
Assets | March 31, 2025 |
| December 31, 2024 | ||||
Current assets: |
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Cash and cash equivalents | $ | 91,652 |
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| $ | 108,117 |
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Cash held on behalf of customers |
| 18,059 |
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| 13,428 |
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Short-term investments |
| 531 |
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| 524 |
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Accounts receivable – net |
| 70,008 |
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| 59,726 |
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Inventories |
| 23,217 |
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| 21,861 |
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Other current assets |
| 16,430 |
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| 14,390 |
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Total current assets |
| 219,897 |
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| 218,046 |
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Property, plant and equipment – net |
| 13,872 |
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| 14,107 |
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Goodwill |
| 890,493 |
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| 887,459 |
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Intangible assets – net |
| 234,057 |
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| 237,333 |
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Lease right-of-use assets |
| 7,719 |
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| 8,221 |
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Other assets |
| 15,511 |
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| 15,561 |
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Total Assets | $ | 1,381,549 |
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| $ | 1,380,727 |
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Liabilities and Shareholders’ Equity |
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Current liabilities: |
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Accounts payable | $ | 32,222 |
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| $ | 34,784 |
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Accrued salaries and benefits |
| 12,101 |
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| 22,487 |
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Accrued expenses |
| 11,490 |
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| 13,938 |
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Customers payable |
| 18,059 |
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| 13,428 |
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Lease liabilities – current portion |
| 2,222 |
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| 2,256 |
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Customer deposits and deferred service revenue |
| 31,410 |
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| 24,944 |
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Total current liabilities |
| 107,504 |
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| 111,837 |
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Lease liabilities – net of current portion |
| 5,608 |
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| 6,053 |
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Deferred service revenue – noncurrent |
| 1,454 |
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| 1,529 |
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Long-term debt |
| 392,270 |
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| 368,355 |
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Other long-term liabilities |
| 22,718 |
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| 21,243 |
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Total liabilities |
| 529,554 |
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| 509,017 |
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Shareholders’ equity: |
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Preferred stock, $0.02 par value, 1,000,000 shares authorized, none outstanding |
| — |
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| — |
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Common stock, $0.02 par value, 116,000,000 shares authorized, 42,067,183 and 40,187,671 shares issued, 40,494,785 and 38,717,366 outstanding at March 31, 2025 and December 31, 2024, respectively |
| 833 |
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| 798 |
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Additional paid in capital |
| 1,201,016 |
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| 1,085,473 |
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Equity consideration payable |
| — |
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| 108,182 |
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Accumulated deficit |
| (304,293 | ) |
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| (279,943 | ) |
Accumulated other comprehensive loss |
| (16,697 | ) |
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| (20,951 | ) |
Treasury stock, at cost, 1,572,398 and 1,470,305 shares at March 31, 2025 and December 31, 2024, respectively |
| (28,864 | ) |
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| (21,849 | ) |
Total shareholders’ equity |
| 851,995 |
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| 871,710 |
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Total Liabilities and Shareholders’ Equity | $ | 1,381,549 |
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| $ | 1,380,727 |
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See notes to unaudited interim condensed consolidated financial statements included in the Company's quarterly report on Form 10-Q for the quarter ended March 31, 2025 (the “Quarterly Report”).
PAR TECHNOLOGY CORPORATION | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(unaudited, in thousands, except per share amounts) | |||||||
| Three Months Ended March 31, | ||||||
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| 2025 |
| 2024 | ||||
Revenues, net: |
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Subscription service | $ | 68,410 |
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| $ | 38,379 |
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Hardware |
| 21,843 |
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| 18,226 |
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Professional service |
| 13,606 |
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