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1. Company Snapshot

1.a. Company Description

PAR Technology Corporation, together with its subsidiaries, provides technology solutions to the restaurant and retail industries worldwide.The company operates in two segments, Restaurant/Retail and Government.The Restaurant/Retail segment offers point-of-sale (POS) technology solutions, including Brink POS, an open cloud solution that integrates with third party products and in-house systems; Punchh, an enterprise-grade customer loyalty and engagement solution for restaurant and convenience store brands; Data Central, a cloud software solution for back-office applications; PAR Payment Services, a merchant services offering; POS integrated solutions for wireless headsets for drive-thru order-taking; and the PAR Infinity, PAR Phase, PAR Helix, and the EverServ 8000 series platform.


This segment also offers training, installation, technical support, and repair services.The Government segment provides intelligence, surveillance, and reconnaissance solutions; systems engineering support and software-based solutions; satellite and teleport facility operations and maintenance, engineering, and installation services; satellite control center; and information technology infrastructure library services to the Unites States Department of Defense and other federal agencies, as well as offers licensed software products.It offers products and services through its sales teams, channel partners, and resellers.


The company was founded in 1968 and is headquartered in New Hartford, New York.

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1.b. Last Insights on PAR

The recent 3 months performance of PAR Technology Corporation was negatively impacted by several factors. The company's transition to a subscription-based model, while driving significant growth, has also led to margin pressures. Additionally, customer concentration risks have emerged as a concern, as the company's reliance on a few large customers increases its vulnerability to potential losses. Furthermore, the company's recent earnings release highlighted a 21% organic ARR growth year-over-year, but also revealed a 14.1% year-over-year increase in medical care ratios, which may have weighed on the stock.

1.c. Company Highlights

2. PAR Technologies Delivers Strong Q3 2025 Results

PAR Technologies reported a robust Q3 2025, with revenue reaching $119 million, a 23% year-over-year increase driven by growth in software subscription and hardware revenue. The company's adjusted EBITDA was $5.8 million, which, after adjusting for non-period costs, translates to $6.6 million. Earnings per share (EPS) came in at $0.06, beating estimates of -$0.02143. Gross margin was $49 million, up 14% from the prior year, driven by subscription services with gross margin dollars of $41 million, a 25% increase.

Publication Date: Nov -20

📋 Highlights
  • Revenue Growth:: Q3 revenue reached $119 million, a 23% YoY increase driven by software subscriptions ($75 million, +25% YoY) and hardware growth.
  • Adjusted EBITDA:: Adjusted EBITDA improved to $6.6 million after $800,000 non-period cost adjustments, up $3.4 million YoY.
  • ARR Expansion:: Annual Recurring Revenue (ARR) hit $298.4 million, with Operator Cloud ARR growing 31% YoY (14% organic) and Engagement Cloud up 16% YoY (15% organic).
  • Innovation Launch:: Launched Coach AI, an AI-driven assistant for operational insights, leveraging data from combined delegate and data center products to boost cross-selling.
  • Customer Acquisition:: Secured 2 new customers previously using the largest online ordering provider, signaling potential for 2026 growth acceleration.

Revenue Growth Drivers

The company's growth is being driven by both site growth and increased Average Revenue Per User (ARPU), reflecting the successful execution of its "Better Together" thesis. This strategy is driving multiproduct deals and cross-selling into the existing customer base. Notably, the Operator Cloud ARR increased 31% year-over-year, including 14% organic growth, while Engagement Cloud ARR grew 16% from Q3 last year, including 15% organic growth.

Valuation Metrics

Looking at valuation metrics, PAR Technologies has a P/S Ratio of 3.13, indicating that investors are paying $3.13 for every dollar of sales. The EV/EBITDA ratio stands at -29.15, suggesting that the company's enterprise value is significantly higher than its EBITDA, which could imply overvaluation. However, the P/B Ratio is 1.64, which might be considered reasonable for a company with growing ARR and expanding margins.

Operational Highlights

The company launched Coach AI, an AI-driven assistant that enables operators to prompt operational questions in natural language and receive immediate answers from their data. This innovation is expected to create cross-sell and upsell opportunities across the customer base. Additionally, PAR Technologies signed two new customers that were previously using a major competitor, indicating a successful competitive positioning.

Guidance and Outlook

The company expects ARR growth to continue in Q4 and is on track to deliver nearly $450 million in revenue in 2025, with approximately 2/3 being recurring SaaS revenue. Management is focused on growing ARR in the mid-teens organically or higher, executing on a unified product roadmap, and driving operating leverage and EBITDA expansion. As Savneet Singh mentioned, the company feels comfortable with mid-teens growth and sees opportunities to accelerate in 2026 and 2027.

Strategic Initiatives

PAR Technologies is prioritizing strategic initiatives, including closing and announcing large Tier 1 deals to provide further visibility for long-term revenue growth. The company is also leveraging its existing business to pursue more aggressive, accretive, and creative M&A opportunities. With a strong foundation and a sizable backlog, the company is well-positioned for future growth.

3. NewsRoom

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Fund Bets $69 Million on Beaten-Down PAR Technology Stock — Is This the Turning Point?

Dec -04

Source: fool.com

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Abelardo's Mexican Fresh Chooses PAR Technology's Full Suite to Power Its Next Era of Innovation

Dec -04

Source: businesswire.com

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PAR Technology Corporation (PAR) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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PAR Capital Doubles Down on Lyft: Is it Too Late to Buy?

Nov -26

Source: fool.com

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Erbert & Gerbert's Transforms Operations with PAR's Unified Restaurant Platform

Nov -20

Source: businesswire.com

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PAR Technology Corporation to Participate at Stephens Annual Investment Conference

Nov -17

Source: businesswire.com

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Envestnet Asset Management Inc. Has $3.34 Million Stake in PAR Technology Corporation $PAR

Nov -16

Source: defenseworld.net

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PAR Technology Debuts the Future of Large-Scale Catering for Foodservice Brands

Nov -12

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.33%)

6. Segments

Restaurant/Retail

Expected Growth: 10%

PAR Technology Corporation's 10% growth in Restaurant/Retail segment is driven by increasing adoption of digital ordering and payment systems, rising demand for online food delivery, and growing need for restaurants to enhance customer experience through technology. Additionally, the company's focus on providing integrated solutions for inventory management, loyalty programs, and data analytics is contributing to its growth.

Government

Expected Growth: 8%

Government segment growth driven by increasing adoption of PAR's cloud-based solutions, expanding presence in federal, state, and local agencies, and rising demand for digital transformation in the public sector, resulting in an 8% growth rate.

7. Detailed Products

Restaurant POS

A comprehensive point-of-sale system designed for restaurants, providing seamless ordering, inventory management, and customer engagement capabilities.

Brink POS

A cloud-based point-of-sale system designed for restaurants, offering online ordering, delivery, and curbside pickup integrations, as well as robust reporting and analytics.

PAR Pay

A payment processing solution designed for restaurants, providing secure, EMV-compliant transactions and integrated loyalty programs.

Data Central

A data analytics platform providing insights into restaurant operations, including sales, labor, and inventory management.

PAR Tablet

A rugged, mobile point-of-sale tablet designed for restaurants, providing flexibility and mobility for servers and staff.

PAR kiosk

A self-service kiosk solution designed for restaurants, providing customers with a convenient and efficient ordering experience.

8. PAR Technology Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

PAR Technology Corporation's products and services are moderately susceptible to substitutes, as customers have alternative options for point-of-sale systems and restaurant management software.

Bargaining Power Of Customers

PAR Technology Corporation's customers have limited bargaining power due to the company's strong brand reputation and the complexity of its products and services.

Bargaining Power Of Suppliers

PAR Technology Corporation's suppliers have moderate bargaining power, as the company relies on a few key suppliers for components and services, but has some flexibility to negotiate prices and terms.

Threat Of New Entrants

The threat of new entrants is low for PAR Technology Corporation, as the industry has high barriers to entry, including significant capital requirements and the need for specialized expertise.

Intensity Of Rivalry

The intensity of rivalry in the point-of-sale systems and restaurant management software industry is high, with several established competitors vying for market share and customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.23%
Debt Cost 3.95%
Equity Weight 46.77%
Equity Cost 13.88%
WACC 8.59%
Leverage 113.80%

11. Quality Control: PAR Technology Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ON24

A-Score: 4.6/10

Value: 6.2

Growth: 4.0

Quality: 4.2

Yield: 4.0

Momentum: 3.5

Volatility: 5.7

1-Year Total Return ->

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PROS

A-Score: 4.5/10

Value: 5.2

Growth: 6.6

Quality: 5.0

Yield: 0.0

Momentum: 8.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Semrush

A-Score: 3.7/10

Value: 3.8

Growth: 9.0

Quality: 5.8

Yield: 0.0

Momentum: 0.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
PAR Technology

A-Score: 3.6/10

Value: 7.6

Growth: 3.9

Quality: 4.5

Yield: 0.0

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Decisionpoint Systems

A-Score: 3.4/10

Value: 3.9

Growth: 4.8

Quality: 5.3

Yield: 0.0

Momentum: 5.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Everbridge

A-Score: 3.4/10

Value: 3.6

Growth: 7.2

Quality: 2.4

Yield: 0.0

Momentum: 5.0

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

34.37$

Current Price

34.38$

Potential

-0.00%

Expected Cash-Flows