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- **Revenue Growth**: 23% YoY to $119M, driven by 25% subscription and 32% hardware growth. ARR up 15% organically to $298.4M.
- **AI Innovation**: Launched Coach AI, providing real-time operational insights across POS, labor, and inventory. First of several AI-driven features.
- **Customer Momentum**: 6 new Ordering wins, including 400-location chain. Burger King POS implementation on track for 2025 targets. PAR Retail signed 4 new enterprise deals.
- **Financial Health**: Non-GAAP net income $2.5M, up $5.6M. OpEx as % of revenue down to 43.4%. Hardware margins expected to recover to mid-20% in 2026.
- **Strategic Focus**: Accelerating AI product development, pursuing accretive M&A, and expanding into new verticals with Better Together platform.

**【CEO Summary Section】**
- **Revenue Growth**: Total revenue reached $119 million, up 23% year-over-year, driven by 25% growth in subscription services and 32% hardware revenue increase. ARR hit $298.4 million, up 15% organically, with $12 million sequential ARR growth.
- **AI Product Launch**: Introduced Coach AI, an operational intelligence assistant that provides real-time insights across POS, labor, and inventory. This marks the first of several AI-driven features integrated into PAR's platform.
- **Customer Wins**: Signed 6 new customers for PAR Ordering, including a 400-location enterprise chain, and accelerated Burger King POS implementation, pacing to meet 2025 targets. PAR Retail saw 4 new enterprise wins, including a Punchh-to-PAR migration.
- **Operating Efficiency**: Non-GAAP OpEx as a percentage of revenue improved to 43.4%, down from 49.3% in Q3 2024, reflecting cost control and AI-driven operational savings.

**【CFO Financial Commentary】**
- **Financial Performance**: Non-GAAP net income was $2.5 million, up $5.6 million from Q3 2024. Adjusted EBITDA was $5.8 million, excluding $0.8 million in non-period costs. Subscription gross margin improved 150 basis points to 66.2%.
- **Hardware Margin Impact**: Hardware gross margin declined to 17.8% due to tariffs, but pricing adjustments implemented in Q3 are expected to stabilize margins at mid-20% in 2026.
- **Cash Flow**: Operating cash flow was $8 million for the quarter, up from negative $15 million year-to-date. Capital expenditures for software development were $4 million, supporting AI and platform enhancements.

**【Q&A Key Highlights】**
- **M&A Strategy**: CEO Savneet Singh emphasized a focus on accretive, niche acquisitions, noting multiples have compressed 20-30% in the space. PAR is targeting assets that can leverage its existing distribution network.
- **Tariff Mitigation**: Hardware pricing adjustments implemented in Q3 will offset tariff impacts in future quarters, with margins expected to return to mid-20%.
- **AI Adoption**: Coach AI is already reducing manual reporting by 80% for early customers, with plans to launch a marketing intelligence assistant in Q4.
- **Backlog Visibility**: Record backlog and $20 million in late-stage pipeline positions PAR for sustained growth in 2026.
- **Competitive Position**: PAR's multiproduct deals (70% of Engagement Cloud signings) and AI-native platform differentiate it from competitors like Toast, which focuses on SMBs.


PAR Technology Corporation (PAR) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

PAR

PAR fundamentals

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