Par Technology (PAR) AI Stock Analysis

• Market Cap: $881.23M
• Dividend Yield: N/A
• Average Volume (3M): 1.30M
• 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: 1,062,893
• 30 Day Avg. Volume: 1,299,088
• 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: 1.36
• Enterprise Value/Revenue: 2.72
• Enterprise Value/Gross Profit: 6.19
• Enterprise Value/Ebitda: -40.65
• 1Y Price Target: $55.75
• Price Target Upside: 154.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.72
• Revenue Forecast (FY): $505.12M

• Rating: 47 Neutral
• Price Target: $22.50 ▲(2.88% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is held down primarily by weak financial performance (ongoing losses and challenging cash flow) and very bearish technicals (price far below major moving averages with deeply oversold momentum). These are partially offset by a constructive earnings call focused on strong ARR/revenue growth and improving EBITDA, plus positive corporate actions (strategic acquisition and debt reduction).

Positive Factors

Strong ARR growth

A nearly $300M ARR base growing mid-teens organically increases revenue visibility and lowers revenue volatility. A large, growing recurring stream supports predictable cash flows, enhances customer stickiness and cross-sell potential, and underpins scalable long-term SaaS economics.

High and growing subscription mix

A majority-subscription revenue mix drives higher gross margin potential and recurring cash conversion as the business scales. Strong subscription growth reduces reliance on one-time hardware sales, improving predictability and enabling investment in platform features and customer success for durable monetization.

Acquisition builds data/loyalty/media capabilities

Bridg adds identity resolution and shopper intelligence, creating unified loyalty and non-loyalty in-store datasets. That structural capability strengthens PAR’s value proposition to enterprise retailers/CPG, enables closed-loop attribution, and supports long-term expansion into retail media and higher-margin services.

Negative Factors

Ongoing net losses

Sustained net losses and negative EBIT margins signal the company is not yet converting revenue growth into consistent profitability. Persistent losses constrain retained earnings, limit reinvestment capacity, and increase reliance on external financing or equity issuance to fund growth over the medium term.

Negative operating and free cash flow

Negative operating and free cash flow indicate difficulty converting earnings into cash, reducing financial flexibility. Over several quarters this can limit capex, R&D and go-to-market spend without external funding and increases sensitivity to interest rates and financing availability.

Margin pressure in hardware and services

Structural margin compression in hardware from tariffs and lower services margins weaken overall profitability leverage. If these pressures persist, they can slow margin expansion from subscription growth and require deeper operating improvements or price increases to restore sustainable unit economics.

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

Revenue growth and improved gross margin are positives, and leverage appears manageable (D/E 0.48). However, profitability remains weak (negative EBIT and net margins), ROE is negative, and cash flow signals are mixed with negative operating/free cash flow noted in the financial statement analysis.

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: Negative
• Last Price: 21.87
• 50DMA: Negative
• 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 Negative. The current price of 21.87 is below the 20-day moving average (MA) of 24.17, below the 50-day MA of 31.64, and below the 200-day MA of 46.70, indicating a bearish trend. The MACD of -3.21 indicates Negative momentum. The RSI at 32.25 is Neutral, neither overbought nor oversold. The STOCH value of 32.70 is Neutral, 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	71 Outperform	$2.24B	73.32	10.68%	―	17.77%	-76.05%
CALX	68 Neutral	$3.48B	220.54	2.18%	―	4.89%	55.80%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GBTG	61 Neutral	$2.85B	25.02	0.76%	―	5.71%	―
ASAN	51 Neutral	$1.80B	-7.99	-102.48%	―	9.47%	16.97%
PAR	47 Neutral	$881.23M	-9.59	-11.64%	―	13.49%	-772.30%

Par Technology Corporate Events

PAR Technology to Acquire Bridg Shopper Intelligence Platform

On January 23, 2026, PAR Technology Corporation agreed to acquire substantially all assets of Bridg, the identity resolution and shopper intelligence platform division of Cardlytics, in a transaction valued at $27.5 million with a maximum of $30 million, to be paid in PAR common stock, with closing expected in the first quarter of 2026 subject to customary conditions. The deal, announced publicly on January 26, 2026, will fold Bridg’s point-of-sale data analytics, loyalty marketing and retail media network capabilities into PAR’s platform, creating one of the industry’s first unified data sets that combines loyalty and non-loyalty in-store transactions; PAR expects this to deliver full-funnel customer visibility, identity-based personalization at scale and closed-loop attribution for retailers, restaurants and CPG brands, strengthening its competitive positioning in consumer data, loyalty and media and enhancing its value proposition to enterprise customers.

The most recent analyst rating on (PAR) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Par Technology stock, see the PAR Stock Forecast page.

PAR Technology reduces debt through note-for-share exchange

On January 14, 2026, PAR Technology Corporation entered into privately negotiated exchange agreements with certain holders of its 2.875% Convertible Senior Notes due 2026 to exchange approximately $17.1 million in aggregate principal amount of these notes for about 398,650 shares of its common stock plus roughly $134,000 in cash for accrued and unpaid interest, with closing expected on January 23, 2026, subject to customary conditions. The company will not receive any cash proceeds from the transaction and will cancel the exchanged notes, leaving about $2.9 million principal amount of the notes outstanding, effectively reducing its debt load and increasing its share count through an exempt, non-public offering under U.S. securities laws.

The most recent analyst rating on (PAR) stock is a Hold with a $39.00 price target. To see the full list of analyst forecasts on Par Technology stock, see the PAR Stock Forecast page.

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.