Par Technology (PAR) AI Stock Analysis

• Market Cap: $2.88B
• Dividend Yield: N/A
• Average Volume (3M): 384.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.69
• Revenue Growth: -8.82%
• EPS Growth: 90.01%
• Country: US
• Employees: 1,581
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): -0.01
• Shares Outstanding: 40,497,500
• 10 Day Avg. Volume: 312,626
• 30 Day Avg. Volume: 384,394
• PEG Ratio: -18.18
• Price to Book (P/B): 3.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -107.02
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 1.96
• Enterprise Value/Gross Profit: 18.13
• Enterprise Value/Ebitda: -16.07
• 1Y Price Target: $84.67
• Price Target Upside: 24.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 58 Neutral
• Price Target: $68.00 ▼(-0.32%Downside)

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

Customer Wins

The company has secured 10 new customer wins, including four Tier-1 wins with major brands like Wendy's and Popeyes, which strengthens its market position.

Growth Strategy

PAR has shown strong multi-product adoption rates and accretive mergers and acquisitions, contributing to improved gross margins and overall financial performance.

Market Confidence

PAR has been added to the Needham Conviction List, highlighting its strong performance with multiple new customer wins.

Negative Factors

Revenue Performance

Total revenue of $104m missed consensus expectations of $106m.

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 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 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	349.98M	415.82M	355.80M	282.88M	213.79M
Gross Profit	146.12M	98.31M	89.29M	62.12M	39.33M
EBITDA	-46.60M	-45.83M	-32.05M	-45.66M	-21.16M
Net Income	-4.99M	-69.75M	-69.32M	-75.80M	-36.56M
Balance Sheet
Total Assets	1.38B	802.61M	854.86M	888.15M	343.75M
Cash, Cash Equivalents and Short-Term Investments	108.64M	74.56M	110.62M	188.42M	180.69M
Total Debt	376.66M	381.83M	393.37M	311.26M	109.17M
Total Liabilities	509.02M	469.54M	479.66M	383.80M	155.34M
Stockholders Equity	871.71M	333.06M	375.19M	504.35M	188.41M
Cash Flow
Free Cash Flow	-32.03M	-27.44M	-50.47M	-61.44M	-29.47M
Operating Cash Flow	-25.25M	-17.07M	-43.07M	-53.16M	-20.24M
Investing Cash Flow	-180.11M	-7.78M	-66.71M	-382.99M	-9.04M
Financing Cash Flow	278.51M	-1.62M	-2.57M	443.61M	180.69M

Par Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 68.22 is below the 20-day moving average (MA) of 68.94, above the 50-day MA of 67.20, and above the 200-day MA of 66.41, indicating a bullish trend. The MACD of 1.22 indicates Negative momentum. The RSI at 63.79 is Neutral, neither overbought nor oversold. The STOCH value of 76.07 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	81 Outperform	$3.16B	228.78	5.21%	―	17.91%	-86.60%
OLO	71 Outperform	$1.72B	578.86	0.49%	―	23.31%	―
CALX	65 Neutral	$3.66B	―	-3.52%	―	-8.80%	-657.91%
GBTG	65 Neutral	$3.19B	―	-3.84%	―	4.82%	73.90%
ASAN	64 Neutral	$3.56B	―	-83.36%	―	9.84%	13.74%
PAR	58 Neutral	$2.88B	―	-13.65%	―	-8.82%	90.01%
Sector *	57 Neutral	HK$14.37B	5.81	-5.77%	4.75%	9.65%	-43.80%

Par Technology Corporate Events

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.

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.

PAR Technology Reports Strong Q1 2025 Financial Results

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.