Par Technology (PAR) AI Stock Analysis

• Market Cap: $1.51B
• Dividend Yield: N/A
• Average Volume (3M): 600.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• 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: 567,161
• 30 Day Avg. Volume: 600,846
• 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: 1.27
• Enterprise Value/Revenue: 4.35
• Enterprise Value/Gross Profit: 9.90
• Enterprise Value/Ebitda: -65.01
• 1Y Price Target: $56.40
• Price Target Upside: 52.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.11
• Revenue Forecast (FY): $451.78M

• Rating: 48 Neutral
• Price Target: $33.00 ▼(-11.03% Downside)

Par Technology's overall stock score is primarily impacted by its financial performance challenges, including negative profitability and cash flow. Technical analysis indicates bearish momentum, while valuation metrics are weak due to ongoing losses. However, the positive earnings call, highlighting strong revenue growth and strategic initiatives, provides a more optimistic outlook.

Positive Factors

Revenue Growth

The strong revenue growth indicates expanding market reach and effective sales strategies, particularly in software subscriptions and hardware sales.

ARR Growth

The increase in ARR reflects steady execution and customer retention, providing a stable revenue base for future growth.

AI Integration

The strategic shift to AI enhances operational efficiency and positions PAR for future technological advancements, potentially increasing competitiveness.

Negative Factors

Profitability Challenges

Ongoing net losses indicate challenges in achieving profitability, which can impact long-term financial health and investment capacity.

Hardware Margin Decline

Declining hardware margins due to supply chain costs can reduce overall profitability and limit reinvestment in growth initiatives.

Cash Flow Challenges

Negative cash flow indicates difficulties in sustaining operations and funding growth without external financing, affecting financial stability.

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 streams, primarily by selling its hardware and software solutions to restaurants and government clients. In the Restaurant segment, the company earns money from the sale of POS systems, subscription fees for its cloud-based software services, and ongoing support and maintenance contracts. The Government segment contributes revenue through contracts for technology solutions and services provided to various government agencies. Additionally, PAR has established strategic partnerships with leading players in the hospitality industry, which helps expand its market reach and drive sales growth. The company's focus on innovation and digital transformation in the restaurant sector further enhances its revenue potential.

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	-18.98M	-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	-12.91M	-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: Positive
• Last Price: 37.09
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 37.09 is above the 20-day moving average (MA) of 35.57, above the 50-day MA of 35.74, and below the 200-day MA of 52.28, indicating a neutral trend. The MACD of 0.33 indicates Negative momentum. The RSI at 55.53 is Neutral, neither overbought nor oversold. The STOCH value of 68.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PAR.

Par Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGYS	73 Outperform	$3.40B	141.28	8.74%	―	17.77%	-76.05%
GBTG	62 Neutral	$4.02B	342.41	0.76%	―	5.71%	―
CALX	61 Neutral	$3.70B	―	-0.91%	―	4.89%	55.80%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ASAN	57 Neutral	$3.20B	-14.49	-102.48%	―	9.47%	16.97%
PAR	48 Neutral	$1.51B	-16.47	-11.64%	―	13.49%	-772.30%

Par Technology Corporate Events

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.