Par Technology (PAR) AI Stock Analysis

• Market Cap: $1.96B
• Dividend Yield: N/A
• Average Volume (3M): 949.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: 4.90%
• EPS Growth: -820.72%
• Country: US
• Employees: 1,581
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): 0.03
• Shares Outstanding: 40,581,078
• 10 Day Avg. Volume: 658,325
• 30 Day Avg. Volume: 949,330
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 7.48
• Enterprise Value/Gross Profit: 16.68
• Enterprise Value/Ebitda: -51.64
• 1Y Price Target: $72.67
• Price Target Upside: 50.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 48 Neutral
• Price Target: $52.00 ▲(7.66% Upside)

PAR Technology's overall stock score reflects a challenging financial and technical environment. The most significant factor is the company's financial performance, which shows revenue growth but struggles with profitability and cash flow. Technical analysis indicates bearish momentum, further weighing on the score. Valuation metrics are unfavorable due to ongoing losses and lack of dividends. The earnings call provides some optimism with strong revenue growth, but challenges in profitability and business execution remain. Overall, the stock requires significant improvements in financial health and market sentiment to enhance its attractiveness.

Positive Factors

Growth Opportunities

PAR Technology is fine-tuning its product line to compete for three Tier 1 enterprise restaurant 'megadeals' that could redefine its growth trajectory and competitive position within the point-of-sale industry.

Stock Valuation

The company's stock price reset to a more attractive level despite strong fundamentals and a robust pipeline is regarded as an opportunity rather than a red flag.

Strategic Partnerships

PAR is in advanced discussions with three top-20 restaurant brands, including two global top-10 brands, highlighting strong potential for future growth.

Negative Factors

Organic Growth Challenges

The stock sold-off sharply on concerns over slowing organic ARR growth due to slower than-expected roll-out of deals and delays in signing large deals.

Revenue Growth Concerns

Management's statement that annual recurring revenue growth could fall short of their 20%+ target sparked a selloff, but the revenue in question would be delayed, not lost.

Share Price Decline

PAR Technology’s 2Q25 report triggered a sharp drop in its share price due to timing issues, not a deterioration of the restaurant technology firm’s prospects.

Par Technology Business Overview & Revenue Model

Company Description

Par Technology Corporation (PAR) is a leading provider of technology solutions for the restaurant and hospitality industries. The company operates primarily through two segments: Restaurant and Government. In the Restaurant sector, PAR develops and sells point-of-sale (POS) systems, cloud-based software solutions, and hardware products designed to enhance operational efficiency and customer engagement. Its Government segment provides advanced technology solutions and services for defense and public safety applications, focusing on software, cloud solutions, and managed services.

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 is experiencing growth in revenue but faces challenges in profitability and cash flow management. The company has shown some improvement in gross profit margins, yet negative net profit margins and EBIT margins highlight ongoing operational inefficiencies. The balance sheet reflects a moderate leverage position, but negative returns on equity indicate profitability concerns. Cash flow issues persist, with negative growth and coverage ratios. Overall, while there are positive signs of revenue growth, the company needs to focus on improving profitability and cash flow to enhance its financial health.

Income Statement

Par Technology shows a mixed performance in its income statement. The company has achieved a revenue growth rate of 8.93% in the TTM period, indicating a positive trend in sales. However, profitability remains a concern with negative net profit margins and EBIT margins, reflecting ongoing operational challenges. The gross profit margin has improved to 44.82% in the TTM, suggesting better cost management, but the overall negative margins highlight the need for further efficiency improvements.

Balance Sheet

The balance sheet of Par Technology presents a moderate financial position. The debt-to-equity ratio of 0.47 in the TTM indicates a manageable level of leverage, which is a positive sign. However, the return on equity remains negative, reflecting the company's struggle to generate returns for shareholders. The equity ratio stands at a healthy level, suggesting a stable asset base, but the negative ROE points to profitability issues that need addressing.

Cash Flow

Par Technology's cash flow statement reveals significant challenges. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is also negative, indicating cash flow difficulties. Despite this, the free cash flow to net income ratio is positive, suggesting that the company is generating some cash relative to its net losses. Overall, the cash flow situation requires improvement to ensure financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	418.02M	349.98M	415.82M	262.35M	282.88M	213.79M
Gross Profit	187.37M	146.12M	98.31M	81.72M	62.12M	39.33M
EBITDA	-60.53M	-46.60M	-45.83M	-32.05M	-45.66M	-21.16M
Net Income	-86.28M	-4.99M	-69.75M	-69.32M	-75.80M	-36.56M
Balance Sheet
Total Assets	1.39B	1.38B	802.61M	854.86M	888.15M	343.75M
Cash, Cash Equivalents and Short-Term Investments	85.69M	108.64M	74.56M	110.62M	188.42M	180.69M
Total Debt	400.31M	376.66M	381.83M	393.37M	311.26M	109.17M
Total Liabilities	532.60M	509.02M	469.54M	479.66M	383.80M	155.34M
Stockholders Equity	859.14M	871.71M	333.06M	375.19M	504.35M	188.41M
Cash Flow
Free Cash Flow	-18.90M	-32.03M	-27.44M	-50.47M	-61.44M	-21.54M
Operating Cash Flow	-11.62M	-25.25M	-17.07M	-43.07M	-53.16M	-20.24M
Investing Cash Flow	-114.89M	-180.11M	-7.78M	-66.71M	-382.99M	-9.04M
Financing Cash Flow	98.44M	278.51M	-1.62M	-2.57M	443.61M	180.69M

Par Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 48.3 is below the 20-day moving average (MA) of 50.62, below the 50-day MA of 60.23, and below the 200-day MA of 65.38, indicating a bearish trend. The MACD of -2.93 indicates Negative momentum. The RSI at 32.83 is Neutral, neither overbought nor oversold. The STOCH value of 4.96 is Positive, 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	74 Outperform	$3.10B	223.26	5.21%	―	17.91%	-86.60%
GBTG	68 Neutral	$3.88B	―	-4.72%	―	3.61%	-44.99%
OLO	68 Neutral	$1.74B	593.71	-0.13%	―	21.92%	95.91%
CALX	65 Neutral	$3.96B	―	-3.52%	―	-8.80%	-657.91%
Sector *	61 Neutral	$35.55B	8.91	-10.55%	1.87%	8.47%	-8.26%
ASAN	51 Neutral	$3.18B	―	-80.55%	―	9.74%	22.36%
PAR	48 Neutral	$1.96B	―	-12.65%	―	4.90%	-820.72%

Par Technology Corporate Events

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.

PAR Technology Shareholders Approve Key Governance Changes

On June 2, 2025, PAR Technology Corporation held its Annual Meeting of Shareholders, where several key proposals were approved. These included an amendment to the company’s Charter to limit the liability of certain officers, and amendments to the Bylaws to enhance procedural mechanics and disclosure requirements. The shareholders also elected seven directors to the Board and approved the compensation of executive officers. Additionally, the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for 2025 was ratified. These decisions are expected to impact the company’s governance and operational transparency.