PAR Technology reported third‑quarter 2025 revenue of $119.2 million, a 23.2% year‑over‑year increase that surpassed consensus estimates of $112.07–$112.60 million by roughly $7.6 million (6.4%). Subscription‑service revenue rose to $74.8 million, while hardware and professional‑service revenue were $30.0 million and $14.5 million, respectively. The company posted a net loss of $18.2 million and an adjusted EBITDA of $5.8 million, the third consecutive quarter of positive adjusted earnings. Non‑GAAP earnings per share were $0.06, beating the consensus of a loss of $0.01 to $0.02 by $0.07–$0.08 per share.
The subscription‑service gross margin held steady at 55.3% GAAP and 66.2% non‑GAAP, slipping 60 basis points from 66.8% a year earlier. The decline is largely attributable to a higher mix of lower‑margin hardware sales and the impact of a fixed‑profit contract acquired in 2024, which reduced the average margin on new hardware deals. Despite the margin compression, the company’s operating leverage improved, as the higher revenue volume offset the lower margin mix and helped lift adjusted EBITDA into positive territory.
Year‑to‑date, PAR Technology generated $335.4 million in revenue, up 36.9% from $245.0 million a year earlier, and recorded a net loss of $63.8 million, a modest narrowing from $64.6 million. Adjusted EBITDA for the first nine months reached $0.9 million, a turnaround from a $15.9 million loss in the same period last year, underscoring the company’s progress toward profitability as it scales its subscription business.
CEO Savneet Singh said, “Q3 was another strong quarter for PAR, one that shows the progress we're making on all fronts: growth, profitability, and cash generation.” He added that the launch of PAR AI—an embedded intelligence layer—“is different. It’s built‑in, not bolted on,” and that the company is “going AI native” to deepen customer stickiness. CFO Bryan Menar highlighted that subscription services continued to fuel organic growth, representing 63% of total Q3 revenue, and emphasized the company’s focus on cost discipline and execution on large Tier 1 opportunities.
Management reiterated guidance for organic ARR growth in the mid‑teens, maintaining the same outlook as the prior quarter. The unchanged guidance signals confidence that the company’s recurring revenue base will continue to expand, while the positive adjusted EBITDA trend suggests that margin pressures can be managed as the business scales. The guidance also reflects the company’s belief that the new AI capabilities will accelerate adoption and drive higher average selling prices in the long run.
Analysts responded with a mix of enthusiasm and caution. Many praised the revenue beat and the turnaround in adjusted EBITDA, while others expressed concern over the modest margin compression and the continued net loss. The overall sentiment indicates that investors view the results as a positive step toward profitability, but they remain attentive to the company’s ability to sustain margin expansion as it invests in AI and scales its subscription platform.
The launch of PAR AI, announced in September 2025, is a strategic move to embed intelligence directly into the company’s product suite. By offering real‑time insights across the restaurant‑tech stack, the company aims to differentiate its platform, increase customer retention, and open new revenue streams. While margin compression in hardware and professional services remains a short‑term headwind, the company’s focus on high‑margin subscription services and AI‑driven product enhancements positions it for long‑term growth and a path to sustained profitability.
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