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Par Technology Corp (PAR)
NYSE:PAR
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Par Technology (PAR) AI Stock Analysis

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PAR

Par Technology

(NYSE:PAR)

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Neutral 48 (OpenAI - 4o)
Rating:48Neutral
Price Target:
$52.00
▲(30.39% 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
Revenue Growth
Strong revenue growth indicates robust market demand and effective sales strategies, enhancing the company's competitive position and long-term prospects.
Subscription Services Expansion
The significant rise in subscription services revenue underscores a successful shift to recurring revenue models, providing stability and predictability in cash flows.
Annual Recurring Revenue Growth
The substantial increase in ARR reflects strong customer retention and the growing adoption of PAR's solutions, supporting sustained financial health and growth.
Negative Factors
Profitability Challenges
Ongoing net losses highlight operational inefficiencies and the need for cost management improvements to achieve profitability and enhance shareholder value.
Cash Flow Issues
Negative operating cash flow indicates liquidity challenges, potentially limiting the company's ability to invest in growth initiatives and manage financial obligations.
POS Business Delays
Delays in the POS business rollout can hinder revenue growth and market expansion efforts, affecting the company's competitive edge in the restaurant technology sector.

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 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 Earnings Call Summary

Earnings Call Date:Aug 08, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Neutral
PAR Technology demonstrated strong revenue and ARR growth, particularly in subscription services and engagement cloud, indicating positive market positioning. However, challenges remain with net losses and slower-than-forecasted POS business impacting short-term revenue. The sentiment remains balanced as the company navigates growth prospects and macroeconomic pressures.
Q2-2025 Updates
Positive Updates
Revenue Growth
PAR Technology reported $112.4 million in revenues for the quarter, marking an increase of 44% year-over-year.
Subscription Services Revenue
Subscription services revenue increased by 60% in the quarter to $72 million from the previous year, with 21% organic growth compared to Q1 2024.
Annual Recurring Revenue (ARR)
ARR reached approximately $287 million, up 49% year-over-year, with organic ARR growth of 16%.
Engagement Cloud Growth
Engagement ARR increased 55%, with 18.5% organic growth compared to Q2 last year.
Multiproduct Deals
PAR signed 27 new logos in Q2, with 19 being multiproduct deals, showing a shift towards unified enterprise-grade solutions.
Hardware Revenue Increase
Hardware revenue increased by 33.5%, driven by accelerated purchases ahead of potential tariffs.
Negative Updates
Net Loss
Net loss from continuing operations for the second quarter of 2025 was $21 million, compared to a net loss of $24 million in the same period of 2024.
POS Business Delays
The POS business has progressed slower than initially forecasted for 2025, impacting short-term revenue opportunities in POS and payments.
Payment Business Slowdown
PAR's payment business saw slower-than-normal growth due to shifts in timing around the attaching payments with PAR POS rollouts.
Operating Cash Flow
Cash used in operating activities was $24 million for the 6 months ended June 30, showing an improvement but still negative.
Company Guidance
In the second quarter of 2025, PAR Technology reported strong financial performance with significant growth across multiple metrics. The company achieved revenues of $112.4 million, marking a 44% increase year-over-year. Subscription services revenue surged by 60% to $72 million, contributing to an annual recurring revenue (ARR) of approximately $287 million, up 49% from the previous year. The adjusted EBITDA was $5.5 million, including $450,000 in accounting charges, which, when adjusted, amounted to $6 million. The company's Operator Cloud ARR reached $119 million, a 42% increase, with organic growth of 13% compared to the same period last year. Engagement ARR also grew by 55%, with 18.5% organic growth. Despite facing some rollout delays, PAR Technology's pipeline remains robust, with about $100 million in potential annual recurring revenue, excluding major Tier 1 deals. The company continues to focus on expanding its product offerings and leveraging its platform strategy to drive future growth.

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
45
Neutral
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
50
Neutral
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
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue418.02M349.98M415.82M262.35M282.88M213.79M
Gross Profit187.37M146.12M98.31M81.72M62.12M39.33M
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 Assets1.39B1.38B802.61M854.86M888.15M343.75M
Cash, Cash Equivalents and Short-Term Investments85.69M108.64M74.56M110.62M188.42M180.69M
Total Debt400.31M376.66M381.83M393.37M311.26M109.17M
Total Liabilities532.60M509.02M469.54M479.66M383.80M155.34M
Stockholders Equity859.14M871.71M333.06M375.19M504.35M188.41M
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 Flow98.44M278.51M-1.62M-2.57M443.61M180.69M

Par Technology Technical Analysis

Technical Analysis Sentiment
Negative
Last Price39.88
Price Trends
50DMA
52.58
Negative
100DMA
59.56
Negative
200DMA
62.83
Negative
Market Momentum
MACD
-3.44
Positive
RSI
19.18
Positive
STOCH
5.86
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 39.88 is below the 20-day moving average (MA) of 44.72, below the 50-day MA of 52.58, and below the 200-day MA of 62.83, indicating a bearish trend. The MACD of -3.44 indicates Positive momentum. The RSI at 19.18 is Positive, neither overbought nor oversold. The STOCH value of 5.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$2.93B211.354.95%17.91%-86.60%
68
Neutral
$3.90B-63.10-13.13%3.61%-44.99%
65
Neutral
$4.02B-151.80-3.48%-8.80%-657.91%
51
Neutral
$3.28B-15.54-92.63%9.74%22.36%
48
Neutral
$1.62B-12.65%4.90%-820.72%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PAR
Par Technology
39.88
-12.20
-23.43%
AGYS
Agilysys
104.66
-4.31
-3.96%
CALX
Calix
61.57
22.78
58.73%
ASAN
Asana
13.89
2.30
19.84%
GBTG
Global Business Travel Group
8.14
0.45
5.85%
OLO
Olo
10.26
5.30
106.85%
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: Aug 19, 2025