The 5 Most Interesting Analyst Questions From PAR Technology's Q1 Earnings Call
Is now the time to buy PAR? Find out in our full research report (it's free).
Revenue: $103.9 million vs analyst estimates of $105.4 million (48.2% year-on-year growth, 1.4% miss)
Adjusted EPS: -$0.01 vs analyst estimates of -$0.04 (76.7% beat)
Adjusted EBITDA: $4.54 million vs analyst estimates of $4.09 million (4.4% margin, relatively in line)
Operating Margin: -15.2%, up from -38.2% in the same quarter last year
Annual Recurring Revenue: $282.1 million at quarter end, up 51.9% year on year
Market Capitalization: $2.71 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Mayank Tandon (Needham): Asked about the timing and scale of upcoming revenue from new deals. CEO Savneet Singh replied that the impact of these wins would become more visible in the second half of the year, leading to both revenue and EBITDA expansion.
Stephen Sheldon (William Blair): Inquired about the visibility for organic ARR growth in the coming year. Singh stated that while it is too early to forecast 2026 precisely, the company feels confident due to recent multi-product wins and a strong sales pipeline.
Will Nance (Goldman Sachs): Sought clarity on foreign exchange impacts to ARR and revenue. CFO Bryan Menar confirmed that most of the FX exposure is due to Australian and New Zealand operations, and that about 20% of ARR is now international.
Charles Nabhan (Stephens): Asked about the gross margin impact of the growing Payments business. Singh explained that Payments remains margin-dilutive but is improving, and still accounts for less than 10% of revenue.
George Sutton (Craig-Hallum): Questioned the evolution of customer needs from single-product RFPs to broader suite adoption. Singh confirmed the trend toward combined offerings and noted that more customers are seeking integrated solutions rather than standalone products.
Looking ahead, the StockStory team will be monitoring (1) the pace at which Tier 1 customer rollouts like Burger King and Popeyes translate into reported revenue growth, (2) the degree of success achieved in cross-selling and integrating new product modules across the Operator and Engagement Cloud platforms, and (3) the company's ability to maintain margin expansion as the mix shifts toward higher-value subscription and payments revenue. Progress on new product launches and resilience against macroeconomic and tariff-related risks will also be important indicators.
PAR Technology currently trades at $66.82, up from $62.39 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it's free).
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