Par Technology (PAR) AI Stock Analysis

• Market Cap: $1.57B
• Dividend Yield: N/A
• Average Volume (3M): 835.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: 13.49%
• EPS Growth: -772.30%
• Country: US
• Employees: 1,581
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.06
• Shares Outstanding: 40,591,030
• 10 Day Avg. Volume: 910,887
• 30 Day Avg. Volume: 835,662
• PEG Ratio: 5.27
• Price to Book (P/B): 2.85
• Price to Sales (P/S): 7.09
• P/FCF Ratio: -77.49
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 4.35
• Enterprise Value/Gross Profit: 9.90
• Enterprise Value/Ebitda: -65.01
• 1Y Price Target: $56.40
• Price Target Upside: 44.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.04
• Revenue Forecast (FY): $446.79M

• Rating: 51 Neutral
• Price Target: $39.00 ▲(0.05% Upside)

Par Technology's overall stock score is primarily influenced by its financial performance challenges, including profitability and cash flow issues. However, the positive sentiment from the earnings call, driven by strong revenue growth and strategic initiatives, provides a counterbalance. Technical analysis and valuation remain weak, reflecting the stock's current market position.

Positive Factors

Revenue Growth

Strong revenue growth driven by software subscriptions and hardware sales indicates robust demand and effective market penetration.

ARR Growth

Growth in ARR reflects successful customer retention and expansion, providing a stable and predictable revenue stream for future periods.

AI Strategic Shift

The launch of AI initiatives positions PAR to enhance operational efficiency and stay competitive in tech-driven markets.

Negative Factors

Profitability Challenges

Negative profit margins indicate ongoing challenges in cost management and profitability, potentially impacting long-term financial health.

Cash Flow Issues

Negative cash flows suggest difficulties in sustaining operations without external financing, affecting financial stability.

Hardware Margin Decline

Declining hardware margins due to supply chain issues could pressure profitability and limit investment in growth initiatives.

Par Technology Business Overview & Revenue Model

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.

How the Company Makes Money

PAR Technology generates revenue through multiple channels, primarily by selling its point-of-sale systems and software solutions to the restaurant industry. This includes initial hardware sales, ongoing software subscriptions, and support services. The company also earns revenue through its Government segment by providing specialized technology solutions and contracts for defense and public safety entities. Key revenue streams include software-as-a-service (SaaS) subscriptions, which provide a steady income, along with installation and maintenance services. Strategic partnerships with major restaurant chains and technology providers further enhance PAR's market reach and contribute significantly to its earnings.

Par Technology Financial Statement Overview

Summary

Par Technology shows revenue growth and improved gross margins, but profitability and cash flow remain significant challenges. The balance sheet is stable with moderate leverage, yet the company struggles to generate positive returns and cash flow.

Income Statement

Par Technology's income statement shows a mixed performance. The company has achieved a revenue growth rate of 5.37% TTM, indicating a positive trend in sales. However, profitability remains a concern with negative net profit and EBIT margins at -19.21% and -13.72% respectively. The gross profit margin has improved to 43.94% TTM, suggesting better cost management, but overall profitability is still under pressure due to high operating expenses.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio stands at 0.48 TTM, indicating a manageable level of leverage. However, the return on equity is negative at -9.89% TTM, highlighting challenges in generating returns for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets.

Cash Flow

Cash flow analysis reveals ongoing challenges. Operating cash flow and free cash flow are both negative, with a free cash flow growth rate of -12.37% TTM. The free cash flow to net income ratio is positive at 1.38, indicating that despite losses, the company is generating some cash relative to its net income. However, the negative operating cash flow to net income ratio suggests difficulties in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	440.45M	349.98M	276.71M	262.35M	282.88M	213.79M
Gross Profit	193.56M	146.12M	89.45M	81.72M	62.12M	39.33M
EBITDA	-29.46M	-46.60M	-45.83M	-44.48M	-45.66M	-21.16M
Net Income	-84.62M	-4.99M	-69.75M	-69.32M	-75.80M	-36.56M
Balance Sheet
Total Assets	1.38B	1.38B	802.61M	854.86M	888.15M	343.75M
Cash, Cash Equivalents and Short-Term Investments	93.01M	108.64M	74.38M	110.62M	188.42M	180.69M
Total Debt	402.35M	376.66M	380.91M	393.37M	311.26M	109.17M
Total Liabilities	539.33M	509.02M	469.54M	479.66M	383.80M	155.34M
Stockholders Equity	838.05M	871.71M	333.06M	375.19M	504.35M	188.41M
Cash Flow
Free Cash Flow	-16.56M	-32.03M	-27.44M	-50.47M	-61.44M	-21.54M
Operating Cash Flow	-12.03M	-25.25M	-17.07M	-43.07M	-53.16M	-20.24M
Investing Cash Flow	-13.10M	-180.11M	-7.78M	-66.71M	-382.99M	-9.04M
Financing Cash Flow	10.70M	278.51M	-1.62M	-2.57M	443.61M	180.69M

Par Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAR, the sentiment is Negative. The current price of 38.98 is above the 20-day moving average (MA) of 35.83, below the 50-day MA of 39.29, and below the 200-day MA of 56.88, indicating a neutral trend. The MACD of -0.63 indicates Negative momentum. The RSI at 57.72 is Neutral, neither overbought nor oversold. The STOCH value of 95.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PAR.

Par Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGYS	76 Outperform	$3.54B	146.75	8.74%	―	17.77%	-76.05%
CALX	63 Neutral	$4.24B	―	-0.91%	―	4.89%	55.80%
GBTG	62 Neutral	$3.81B	341.52	0.76%	―	5.71%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ASAN	52 Neutral	$3.15B	―	-80.55%	―	9.74%	22.36%
PAR	51 Neutral	$1.57B	―	-11.64%	―	13.49%	-772.30%

Par Technology Corporate Events

PAR Technology’s Earnings Call Highlights Growth and AI Shift

The latest earnings call for PAR Technology presented a largely positive outlook, highlighting significant revenue growth, improvements in adjusted EBITDA, and strong performance in Annual Recurring Revenue (ARR). Despite facing challenges in hardware and professional service margins due to external factors like tariffs, the company demonstrated its ability to drive innovation and growth across its platforms. A strategic shift towards artificial intelligence (AI) also indicates promising future prospects for the company.

PAR Technology Reports Strong Q3 2025 Growth

PAR Technology Corporation is a leading provider of foodservice technology solutions, offering a comprehensive platform that integrates point-of-sale, digital ordering, loyalty, back-office, payments, and hardware systems for restaurants and retailers worldwide.

PAR Technology Reports Strong Q3 2025 Financial Results

On November 6, 2025, PAR Technology Corporation announced its financial results for the third quarter ended September 30, 2025. The company reported a 23% increase in quarterly revenues compared to the previous year, with Annual Recurring Revenue (ARR) reaching $298.4 million, a 22% growth from Q3 2024. The launch of PAR AI, an intelligence layer integrated into their product suite, is expected to enhance customer outcomes and expand market share. The company’s strategic focus on AI and a multi-product strategy aims to drive increased revenue and customer engagement.

The most recent analyst rating on (PAR) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Par Technology stock, see the PAR Stock Forecast page.

PAR Technology’s Earnings Call Highlights Strong Growth Amid Challenges

PAR Technology’s recent earnings call painted a picture of robust growth tempered by certain operational challenges. The company showcased strong revenue and subscription growth alongside significant increases in annual recurring revenue (ARR) and successful multiproduct sales. However, the call also highlighted challenges such as slower point-of-sale (POS) rollouts and increased operating expenses. While optimistic about future growth, PAR Technology acknowledged that some targets might be challenging to meet due to macroeconomic pressures.

PAR Technology Reports Strong Q2 2025 Growth

PAR Technology Corporation is a prominent provider of foodservice technology solutions, offering a comprehensive platform that includes point-of-sale systems, digital ordering, and payment services, tailored to enhance restaurant and retail operations globally.

PAR Technology Reports Strong Q2 2025 Financial Results

On August 8, 2025, PAR Technology Corporation announced its financial results for the second quarter ending June 30, 2025. The company reported a 49% increase in Annual Recurring Revenue (ARR) to $286.7 million, with a 60% year-over-year rise in quarterly subscription service revenues. The CEO highlighted the strong quarter with record multi-product signings and a significant company-wide pipeline, indicating a solid foundation for future growth and profitability.

The most recent analyst rating on (PAR) stock is a Hold with a $59.00 price target. To see the full list of analyst forecasts on Par Technology stock, see the PAR Stock Forecast page.