Alarm (ALRM) Receives Hold Rating from William Blair Analyst Stephen Sheldon

Alarm (ALRM) shares received a Hold rating from William Blair analyst Stephen Sheldon. The company's shares closed at $54.34. Sheldon has a 9.4% average return and 59.60% success rate on recommended stocks. The analyst consensus on Alarm is a Moderate Buy with an average price target of $75.20.

PAR Technology Corporation (NASDAQ:PAR) reported its second-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.03, compared to the forecasted $0.02. Revenue also exceeded projections, reaching $112.4 million against a forecast of $110.82 million [1]. Despite these positive results, the company’s stock saw a decline of 13.84%, closing at $56.1 in pre-market trading.

Key Takeaways
PAR Technology’s EPS and revenue both exceeded analyst forecasts. Subscription services revenue increased by 60% year-over-year. The company launched several new AI-driven products and expanded its market presence. Macroeconomic volatility is impacting the quick-service restaurant (QSR) market.

Company Performance
PAR Technology demonstrated robust performance in Q2 2025, with revenue climbing 44% year-over-year to $112.4 million. The company reported significant growth in its subscription services, which saw a 60% increase, contributing to an annual recurring revenue (ARR) of $287 million, up 49% from the previous year. The company’s strategic initiatives and product innovations have positioned it well within the competitive landscape, particularly in online ordering and loyalty programs.

Market Reaction
Despite the positive earnings surprise, PAR Technology’s stock fell by 13.84% in pre-market trading, closing at $56.1. This decline could be attributed to broader market trends or investor concerns over macroeconomic volatility affecting the QSR market. The stock’s current price is closer to its 52-week low of $46.93, indicating potential investor caution.

Outlook & Guidance
Looking ahead, PAR Technology remains optimistic, targeting 20% organic ARR growth with expectations of mid-teens growth for 2025. The company is focusing on AI integration and product development, with a significant pipeline of $100 million, excluding mega deals. Potential global Tier 1 deals are anticipated in late 2025/2026, which could further bolster the company’s market position. InvestingPro data shows analyst price targets ranging from $69.61 to $105, suggesting significant upside potential. While the company is not currently profitable, analysts predict profitability this year, with an EPS forecast of $0.11 for FY2025.

Executive Commentary
CEO Savneet Singh emphasized the company’s strong foundation and future prospects, stating, "Our foundation is strong and our future path is certain." He also highlighted the company’s commitment to AI, noting, "PAR is all in on AI." These statements reflect the company’s strategic focus and confidence in its growth trajectory.

Risks and Challenges
Macroeconomic volatility in the QSR market could impact future growth. Slower POS rollouts due to economic uncertainty may affect short-term revenues. The strategic pause on some product implementations could delay potential revenue streams. Increasing competition in the technology solutions sector could pressure market share. Dependence on successful AI integration and product development for future growth.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-par-technology-q2-2025-beats-forecasts-stock-drops-93CH-4181142