PAR Technology Q2 Earnings Call Highlights

PAR Technology NYSE: PAR reported second-quarter fiscal 2026 results that exceeded its prior outlook, led by subscription growth, elevated hardware sales and continued operating expense discipline. The company raised its full-year revenue and adjusted EBITDA guidance while reiterating expectations for faster annual recurring revenue growth in the second half. Total revenue rose 19% year over year to $133 million, including subscription service revenue of $83 million, up 16%. PAR reported a net loss of $17 million, or $0.41 per share, compared with a net loss of $21 million, or $0.52 per share, a year earlier. Non-GAAP net income was $7.5 million, or $0.18 per diluted share, versus $0.6 million, or $0.01 per diluted share, in the prior-year period. Adjusted EBITDA reached $14.3 million, up $5.3 million sequentially and $8.7 million from the prior year. CFO Bryan Menar said the result marked the company’s sixth consecutive quarter of sequential adjusted EBITDA growth. He noted that the quarter included $1.3 million of overperformance associated with a hardware initiative for a large legacy restaurant customer, putting normalized adjusted EBITDA at approximately $13 million.

PAR exited the quarter with approximately $338 million in annual recurring revenue, up more than 17% year over year, including 12.3% organic growth. Management said the company expects ARR growth to accelerate during the second half as deployments progress for Burger King and Papa Johns, alongside other restaurant and retail implementations. CEO Savneet Singh said nearly all new engagements during the quarter involved multiple PAR products, including point of sale, loyalty, ordering, payments and back-office capabilities. The company cited new multi-product wins with Guthrie’s Chicken, Sarku Japan, Newk’s, Burgerville, Phil Brady’s and Bad Ass Coffee. Singh said PAR POS remained ahead of plan on Burger King activations and that the company completed key development milestones ahead of Papa Johns’ planned platform deployment. PAR OPS, meanwhile, activated nearly 700 locations during the quarter, its strongest quarter to date, according to management. In the ordering business, PAR closed six new deals during the quarter, including three customers that migrated from what Singh described as the market’s largest legacy ordering provider. Every ordering deal also included other PAR products, he said. Catering capabilities were included in two of the six wins, reflecting demand following product investments made last year.

PAR continued to emphasize its artificial intelligence strategy, which centers on using data across its connected restaurant and retail platform. The co...