Par Technology (PAR) AI Stock Analysis

• Market Cap: $2.44B
• Dividend Yield: N/A
• Average Volume (3M): 385.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: -8.82%
• EPS Growth: 90.01%
• Country: US
• Employees: 1,581
• Sector: Technology
• Sector Strength: 65
• Industry: Software - Application
• EPS (TTM): -0.01
• Shares Outstanding: 40,497,500
• 10 Day Avg. Volume: 344,665
• 30 Day Avg. Volume: 385,321
• PEG Ratio: -19.27
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -630.77
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $84.40
• Price Target Upside: 30.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

Par Technology's stock score reflects strong revenue and ARR growth, driven by subscription services and strategic advancements. However, significant profitability challenges, high leverage, and poor valuation weigh heavily on the score. Technical analysis indicates potential overbought conditions, adding caution. Positive sentiment from the earnings call supports a more optimistic outlook, yet the need for improved financial health remains crucial.

Positive Factors

Contract Wins

PAR announced that it had won a contract to provide Data Central to Popeyes, which could represent a significant contract.

Multi-Product Adoption

The 'Better Together' thesis of driving multi-product adoption is showing signs of success as 57% of new signed Engagement deals were multi-product, up from 16% the year prior.

Sales Momentum

CEO Savneet Singh's commentary during the conference call about sales momentum headed into the second half is expected to accelerate organic growth to over 20%.

Negative Factors

Acquisition Impact

The acquisition modestly dilutes existing holders.

BK Rollout

The deceleration in organic ARR growth was largely due to the Burger King rollout being set back by the contract expansion.

Organic ARR Growth

Organic ARR growth decelerated to 18% from 21%, indicating some challenges in maintaining growth momentum.

Par Technology Business Overview & Revenue Model

Company Description

PAR Technology Corporation (PAR) is a leading provider of software, systems, and service solutions to the restaurant and retail industries. With a focus on delivering cutting-edge technology to streamline operations, PAR offers a variety of products including point-of-sale (POS) systems, back-office software, and cloud-based solutions that enhance customer engagement and operational efficiency. The company's offerings are designed to serve both large enterprise clients and independent operators, ensuring flexibility and scalability across different business models.

How the Company Makes Money

PAR Technology makes money primarily through the sale and licensing of its software and hardware solutions to restaurant and retail businesses. Key revenue streams include the recurring subscription fees from its cloud-based services, which offer tools for inventory management, customer loyalty programs, and analytics. Additionally, PAR generates income from the sale and maintenance of its POS hardware systems. The company also benefits from significant partnerships with major restaurant chains, providing tailored solutions that integrate seamlessly with existing operations. Service contracts and support agreements further contribute to PAR's earnings, ensuring ongoing customer engagement and satisfaction.

Par Technology Financial Statement Overview

Summary

Par Technology's financial performance is mixed. While revenue is growing, consistent net losses and negative margins indicate profitability challenges. The balance sheet shows a strong equity base but high leverage, and cash flow from operations remains negative, suggesting operational difficulties.

Income Statement

Par Technology has shown revenue growth over the years, which is a positive indicator. However, consistent net losses and negative EBIT and EBITDA margins highlight ongoing profitability challenges. The gross profit margin has improved slightly, but the net profit margin remains negative, indicating inefficiencies in cost management.

Balance Sheet

The company has a relatively strong equity position with an equity ratio of approximately 63% as of the latest report. However, the debt-to-equity ratio is somewhat high, suggesting a reliance on debt financing which could pose risks in a rising interest rate environment. Despite this, improvements in stockholders' equity over the years show a positive trajectory.

Cash Flow

Par Technology's cash flow from operations is negative, which is concerning as it indicates challenges in generating cash from core activities. However, the company has managed to maintain cash flow through financing activities. The lack of positive free cash flow growth and low operating cash flow to net income ratio are notable weaknesses.

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
	EBIT
-79.10M	-59.71M	-62.43M	-58.28M	-27.29M
	EBITDA
-46.60M	-33.35M	-32.05M	-45.66M	-21.16M
	Net Income Common Stockholders
-4.99M	-69.75M	-69.32M	-75.80M	-36.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
108.64M	74.56M	110.62M	188.42M	180.69M
	Total Assets
1.38B	802.61M	854.86M	888.15M	343.75M
	Total Debt
376.66M	381.83M	393.37M	311.26M	109.17M
	Net Debt
268.55M	344.46M	323.04M	122.84M	-71.51M
	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	-27.94M	-50.69M	-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: 64.73
• 50DMA: Positive
• 100DMA: Negative
• 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 64.73 is above the 20-day moving average (MA) of 58.66, above the 50-day MA of 59.92, and above the 200-day MA of 62.80, indicating a bullish trend. The MACD of 0.90 indicates Negative momentum. The RSI at 65.75 is Neutral, neither overbought nor oversold. The STOCH value of 79.73 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
ODD	78 Outperform	$3.67B	37.85	32.25%	―	26.83%	47.48%
RNG	69 Neutral	$2.34B	―	16.58%	―	7.78%	70.43%
PAYO	69 Neutral	$2.40B	22.17	15.97%	―	14.86%	-0.94%
RLX	64 Neutral	$2.24B	29.90	3.49%	0.43%	106.83%	10.27%
Sector *	60 Neutral	$10.96B	10.27	-6.73%	2.97%	7.73%	-11.60%
PAR	59 Neutral	$2.44B	―	-13.65%	―	-8.82%	90.01%
AMBA	47 Neutral	$2.11B	―	-20.89%	―	25.78%	32.95%

Par Technology Corporate Events

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.

Spark’s Take on PAR Stock

According to Spark, TipRanks’ AI Analyst, PAR is a Neutral.

Par Technology shows strong revenue growth and strategic advancements, particularly in subscription services and ARR, which are key strengths. However, profitability challenges, high leverage, and a poor valuation indicate risks. The technical analysis shows neutral momentum with potential overbought conditions. The positive earnings call sentiment bolsters the score.

To see Spark’s full report on PAR stock, click here.

PAR Technology Reports Strong 2024 Financial Growth

PAR Technology Corporation announced its financial results for the fourth quarter and full year 2024, highlighting a significant growth in Annual Recurring Revenue (ARR) to $276 million, a 102% increase from the previous year, with organic growth contributing 21%. The company also reported a 95% year-over-year increase in quarterly subscription service revenues, and its acquisition of Delaget, LLC, a provider of restaurant analytics and business intelligence solutions, further strengthens its market position. The results reflect PAR’s strategic focus on organic execution and the integration of accretive modules, setting the stage for continued long-term growth and shareholder value.