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Par Technology (PAR)
:PAR

Par Technology (PAR) AI Stock Analysis

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Par Technology

(NYSE:PAR)

Rating:58Neutral
Price Target:
$68.00
▲(1.40%Upside)
PAR Technology's overall stock score is driven by strong earnings call performance with future growth potential, offset by financial challenges and valuation concerns. The company's efforts to grow its subscription services and multiproduct deals provide optimism, but persistent profitability issues and negative cash flow need addressing to improve its financial health.
Positive Factors
Business Strategy
PAR strives to have its products work 'better together', where the value of each is high on a standalone basis but even higher when combined with additional PAR products.
Growth and Expansion
Management continued to sound confident in the multiyear growth outlook, along with the likely ramp-up in profit and free cash flow as recent large contract wins are implemented.
Negative Factors
Organic Growth
Organic ARR growth decelerated to 18% from 21% during 4Q24.
Revenue Performance
Total revenue of $104m missed consensus expectations of $106m.

Par Technology (PAR) vs. SPDR S&P 500 ETF (SPY)

Par Technology Business Overview & Revenue Model

Company DescriptionPAR 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 MoneyPAR Technology makes money through the sale of its POS hardware and software solutions to businesses in the hospitality and retail sectors. Its revenue model includes one-time sales of its hardware products, such as POS terminals, and recurring revenue from its cloud-based software services, which include subscriptions and support services. Additionally, PAR generates revenue from professional services like installation, training, and maintenance. The company may also leverage strategic partnerships with other technology providers to enhance its product offerings and expand its market reach. These diversified revenue streams and partnerships contribute significantly to PAR's earnings.

Par Technology Earnings Call Summary

Earnings Call Date:May 09, 2025
(Q1-2025)
|
% Change Since: 7.47%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong positive outlook with significant revenue and ARR growth, driven by subscription services and multiproduct deals. However, the pause in the Burger King implementation and currency fluctuations were noted as challenges. The overall sentiment is bolstered by continued customer wins and successful execution of PAR's integrated solutions strategy.
Q1-2025 Updates
Positive Updates
Significant Revenue Growth
PAR Technology reported $104 million in revenues for Q1 2025, marking an increase of more than 48% year-over-year.
Subscription Services Revenue Surge
Subscription services revenue increased by 78% to $68.4 million, with 20% organic growth compared to Q1 2024.
Total ARR Growth
Total Annual Recurring Revenue (ARR) was reported at $282 million, growing 52% year-over-year with 18% organic growth.
Adjusted EBITDA Improvement
Adjusted EBITDA for the quarter was $4.5 million, a nearly $15 million improvement from Q1 last year.
Multiproduct Deal Success
In Q1, 57% of new signed Engagement deals were multiproduct, up from 16% in Q1 2024, demonstrating the success of PAR's integrated solutions approach.
New Customer Wins
PAR secured several new customer wins, including five new PAR POS customers and a back-office partnership with Popeyes Louisiana Kitchen.
Negative Updates
Burger King Implementation Pause
PAR paused the PAR POS implementation for Burger King, which impacted current quarter growth.
Currency Fluctuation Impact
Currency fluctuations, especially with the New Zealand and Australian dollars, impacted reported ARR and revenues negatively.
Tariff Concerns
Ongoing uncertainty around tariffs and potential impacts on hardware costs could affect future performance, although mitigated by diversified sourcing.
Company Guidance
During the PAR Technology 2025 First Quarter Financial Results Conference Call, the company provided substantial guidance metrics highlighting a strong performance and future outlook. They reported Q1 revenues of $104 million, marking a 48% year-over-year increase. Subscription services revenue rose by 78% to $68.4 million, contributing significantly to the total ARR of $282 million, which reflected a 52% growth, including 18% organic growth from Q1 last year. The company also achieved a non-GAAP gross profit increase of nearly 35% year-over-year, with subscription service gross margins surpassing 69%. Adjusted EBITDA for the quarter was $4.5 million, demonstrating a nearly $15 million improvement from the previous year’s Q1. The call projected a strong second-half outlook, with install velocity expected to peak in Q3 and Q4, coupled with the signing of several new multiproduct deals that are anticipated to drive substantial revenue opportunities extending into 2026.

Par Technology Financial Statement Overview

Summary
Par Technology faces financial challenges, particularly in achieving profitability and positive cash flow. While there are signs of revenue growth, the company needs to address its cost structure and improve operational efficiency. The balance sheet offers some stability with a strong equity base, but operational losses and cash flow issues pose risks.
Income Statement
55
Neutral
Par Technology shows a mixed performance in its income statement. The company has struggled with profitability, as indicated by negative EBIT and Net Income, reflecting challenges in managing its operating expenses. Gross Profit Margin is reasonable, but the consistent net losses indicate issues with cost control or revenue generation. Revenue growth is inconsistent, but there is improvement in the latest TTM period, suggesting potential recovery.
Balance Sheet
60
Neutral
The balance sheet reveals a stable financial position with a good equity base. The Debt-to-Equity ratio is moderate, indicating manageable leverage. However, the Return on Equity is negative, reflecting sustained losses. The Equity Ratio suggests a solid equity foundation relative to total assets, providing some buffer against liabilities.
Cash Flow
50
Neutral
Cash flow performance is weak due to negative Free Cash Flow and Operating Cash Flow, highlighting liquidity concerns. The company's reliance on financing activities to support operations is evident, and consistent negative cash flows suggest potential cash management challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue383.77M349.98M415.82M355.80M282.88M213.79M
Gross Profit168.41M146.12M98.31M89.29M62.12M39.33M
EBITDA-51.93M-46.60M-45.83M-32.05M-45.66M-21.16M
Net Income-15.03M-4.99M-69.75M-69.32M-75.80M-36.56M
Balance Sheet
Total Assets1.38B1.38B802.61M854.86M888.15M343.75M
Cash, Cash Equivalents and Short-Term Investments92.18M108.64M74.56M110.62M188.42M180.69M
Total Debt400.10M376.66M381.83M393.37M311.26M109.17M
Total Liabilities529.55M509.02M469.54M479.66M383.80M155.34M
Stockholders Equity852.00M871.71M333.06M375.19M504.35M188.41M
Cash Flow
Free Cash Flow-25.75M-32.03M-27.44M-50.47M-61.44M-29.47M
Operating Cash Flow-18.84M-25.25M-17.07M-43.07M-53.16M-20.24M
Investing Cash Flow-33.93M-180.11M-7.78M-66.71M-382.99M-9.04M
Financing Cash Flow98.49M278.51M-1.62M-2.57M443.61M180.69M

Par Technology Technical Analysis

Technical Analysis Sentiment
Positive
Last Price67.06
Price Trends
50DMA
64.51
Positive
100DMA
63.07
Positive
200DMA
65.37
Positive
Market Momentum
MACD
0.81
Negative
RSI
54.79
Neutral
STOCH
75.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAR, the sentiment is Positive. The current price of 67.06 is above the 20-day moving average (MA) of 65.61, above the 50-day MA of 64.51, and above the 200-day MA of 65.37, indicating a bullish trend. The MACD of 0.81 indicates Negative momentum. The RSI at 54.79 is Neutral, neither overbought nor oversold. The STOCH value of 75.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PAR.

Par Technology Risk Analysis

Par Technology disclosed 30 risk factors in its most recent earnings report. Par Technology reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Par Technology Peers Comparison

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ODODD
82
Outperform
$4.19B43.2932.25%26.83%47.48%
75
Outperform
$2.51B23.1815.97%14.86%-0.94%
RLRLX
73
Outperform
$2.85B32.284.07%0.34%75.72%-6.45%
59
Neutral
$2.81B-18.35%44.54%41.55%
PAPAR
58
Neutral
$2.82B-13.65%-8.82%90.01%
RNRNG
53
Neutral
$2.65B16.58%7.78%70.43%
50
Neutral
AU$1.48B1.28-28.24%3.26%16.24%-7.89%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PAR
Par Technology
69.52
23.94
52.52%
AMBA
Ambarella
67.32
9.26
15.95%
RNG
RingCentral
29.87
1.96
7.02%
PAYO
Payoneer
6.98
1.52
27.84%
RLX
RLX Technology
2.40
0.59
32.60%
ODD
ODDITY Tech Ltd. Class A
75.96
34.79
84.50%

Par Technology Corporate Events

Executive/Board ChangesShareholder Meetings
PAR Technology Shareholders Approve Key Governance Changes
Neutral
Jun 3, 2025

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.

The most recent analyst rating on (PAR) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Par Technology stock, see the PAR Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
PAR Technology Reports Strong Q1 2025 Financial Results
Positive
May 9, 2025

On May 9, 2025, PAR Technology Corporation announced its financial results for the first quarter ending March 31, 2025, highlighting a 52% growth in Annual Recurring Revenue (ARR) to $282.1 million and a 78% increase in quarterly subscription service revenues compared to the previous year. The company’s ‘Better Together’ software strategy and the resilient enterprise food-service industry contributed to these strong results, with new customer acquisitions and increased adoption of multi-product deals driving significant year-over-year gross margin expansion and positive Adjusted EBITDA for the third consecutive quarter.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 24, 2025