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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 Technology's Q4 2025 Earnings: A Strong Finish to the Year

PAR Technology reported revenue of $120.1 million for Q4 2025, representing a 14% increase year-over-year. The company's non-GAAP net income was $2.6 million, and earnings per share (EPS) came in at $0.06, missing the estimated EPS of $0.08. The revenue growth was driven primarily by the company's subscription services, which continue to be a key driver of growth. The gross margin was $61 million, up from the previous year, indicating a stable pricing environment.

Publication Date: Mar -09

📋 Highlights

Segment Performance

The company's ARR (Annual Recurring Revenue) grew to $315.4 million, representing a 15% increase year-over-year. The growth was driven by strong sales of the company's POS solutions and AI-driven products. The ARR growth is a positive indicator, as it suggests that the company's efforts to expand its customer base and increase sales to existing customers are paying off.

Operational Efficiency

PAR Technology's adjusted EBITDA for Q4 2025 was $7 million, representing a $1.2 million increase sequentially and a $1.3 million increase year-over-year. The company's operating expenses increased by 15% to $54 million, primarily driven by a $4 million increase in R&D expenses. However, the company expects to eliminate $15 million in annualized OpEx through AI-driven automation by the end of Q1.

Guidance and Outlook

The company guided to mid-teens ARR growth in 2026, driven by continued strength in subscription services and AI-driven products. The guidance suggests that the company is confident in its ability to continue growing its customer base and increasing sales to existing customers. With a current P/S Ratio of 1.74 and EV/EBITDA of -41.77, the market is pricing in a mix of growth and profitability challenges. The ROE is not directly available, but the return on assets is around 6-7% based on the reported net income and total assets.

Valuation and Conclusion

Considering the valuation metrics, PAR Technology's stock is trading at a P/E Ratio of -9.21, indicating that the market is pricing in significant challenges to the company's profitability. However, the P/B Ratio of 0.94 suggests that the stock may be undervalued relative to its book value. Overall, the company's strong Q4 2025 earnings and guidance suggest that it is well-positioned for continued growth in 2026, driven by its AI-driven hospitality platform. As Savneet Singh mentioned, "We're seeing a lot of potential in AI and are making investments to modernize our products at PAR." This investment in AI is expected to drive future growth and profitability.

3. NewsRoom

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PAR Technology Corporation (NYSE:PAR) Short Interest Update

Apr -16

Source: defenseworld.net

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PAR Technology Announces PAR Intelligence: Establishing the Agentic OS for Multi-Unit Operators

Apr -07

Source: businesswire.com

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Medical Cannabis Payment Solutions (OTCMKTS:REFG) & PAR Technology (NYSE:PAR) Head-To-Head Comparison

Mar -29

Source: defenseworld.net

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Cardlytics Completes Sale of Bridg Assets to PAR Technology

Mar -24

Source: businesswire.com

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Royce Capital Fund-Micro-Cap Portfolio FY 2025: What Worked

Mar -19

Source: seekingalpha.com

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Reviewing PAR Technology (NYSE:PAR) & Corpay (NYSE:CPAY)

Mar -19

Source: defenseworld.net

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PAR Technology Corporation $PAR Shares Sold by ADW Capital Management LLC

Mar -15

Source: defenseworld.net

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PAR Technology (NYSE:PAR) Sets New 1-Year Low – Should You Sell?

Mar -15

Source: defenseworld.net

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: 4.4/10

Value: 6.3

Growth: 4.1

Quality: 4.2

Yield: 4.0

Momentum: 2.5

Volatility: 5.3

1-Year Total Return ->

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PROS

A-Score: 4.1/10

Value: 4.9

Growth: 6.4

Quality: 5.0

Yield: 0.0

Momentum: 5.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Semrush

A-Score: 3.9/10

Value: 2.9

Growth: 9.0

Quality: 5.8

Yield: 0.0

Momentum: 4.5

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Decisionpoint Systems

A-Score: 3.7/10

Value: 4.2

Growth: 4.8

Quality: 5.3

Yield: 0.0

Momentum: 6.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Everbridge

A-Score: 3.5/10

Value: 3.3

Growth: 7.2

Quality: 2.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
PAR Technology

A-Score: 3.5/10

Value: 7.7

Growth: 4.0

Quality: 4.5

Yield: 0.0

Momentum: 0.5

Volatility: 4.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.18$

Current Price

14.18$

Potential

-0.00%

Expected Cash-Flows