Par Technology Expects Mid-Teens Organic ARR Growth in 2025 Despite Mixed Q2 Results

Par Technology's mixed Q2 results, with ARR falling short of expectations but revenue exceeding forecasts, have not deterred William Blair analyst Stephen Sheldon from reiterating a Buy rating. Sheldon cites the company's promising pipeline, strategic positioning, and positive management outlook, including mid-teens organic ARR growth in 2025. Sheldon's confidence in Par Technology's future growth potential is underpinned by advanced-stage discussions with major restaurant brands and a robust pipeline of nearly $100 million in ARR.

PAR Technology Corporation (PAR) reported mixed results for its second quarter of 2025, with adjusted EBITDA of $5.5 million and total revenue of $112.4 million, a 44% year-over-year increase. While subscription services revenue rose by 60% to $72 million, and ARR reached approximately $287 million, up 49% year-over-year, the company's ARR fell short of expectations.

Despite the mixed results, William Blair analyst Stephen Sheldon reiterated a Buy rating on PAR, citing the company's promising pipeline, strategic positioning, and positive management outlook. Sheldon highlighted that PAR's mid-teens organic ARR growth in 2025 is supported by advanced-stage discussions with major restaurant brands and a robust pipeline of nearly $100 million in ARR.

Management reported that the slower-than-expected POS rollouts in the first half of the year will make achieving the 20% growth target harder but emphasized that the second half of the year looks strong. The company expects to finish 2025 with organic ARR growth in the mid-teens, driven by the slower POS and payment rollouts seen in the first half of the year.

PAR's strategic focus has intensified on multiproduct deals and the potential for large Tier 1 wins, with more explicit details on pipeline size and the impact of delayed implementations. The company's Q2 results showed continued growth, but growth rates moderated compared to Q1. Management is now more focused on contracted ARR and visibility into late-stage deals.

Analysts questioned the timing of rollouts, ARR growth reacceleration, and the impact of multiproduct deals, with a tone that was generally neutral but pressing for clarifications and more specific guidance. Management maintained a confident but measured tone throughout, emphasizing visibility into pipeline and future contracted revenue.

PAR Technology remains focused on execution within a robust late-stage pipeline and continues to emphasize long-term value creation and shareholder returns as central to its strategy. The company expects to finish 2025 with organic ARR growth in the mid-teens, citing strong second-half momentum from contracted POS and multiproduct rollouts.

References:
[1] https://seekingalpha.com/news/4482820-par-technology-targets-mid-teens-organic-arr-growth-for-2025-amid-multiproduct-rollout
[2] https://finance.yahoo.com/news/william-blair-reiterates-buy-rating-021853931.html