In This Article:
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Revenue: $104 million in Q1, a 48% increase year-over-year.
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Subscription Services Revenue: $68.4 million, a 78% increase from last year, with 20% organic growth.
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Total ARR: $282 million, a 52% increase, including 18% organic growth.
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Non-GAAP Gross Margin: 54%, driven by subscription services gross margin of 69%.
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Adjusted EBITDA: $4.5 million, a nearly $15 million improvement from Q1 last year.
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Net Loss: $25 million or $0.61 loss per share, compared to $20 million or $0.69 loss per share last year.
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Non-GAAP Net Loss: Approximately $250,000 or $0.01 loss per share, improved from $14 million or $0.47 loss per share last year.
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Hardware Revenue: $22 million, a 20% increase from last year.
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Professional Service Revenue: $13.6 million, relatively unchanged from last year.
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Cash and Cash Equivalents: $92 million as of March 31, 2025.
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Cash Used in Operating Activities: $17 million for the three months ended March 31, 2025.
Release Date: May 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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PAR Technology Corp (NYSE:PAR) reported a significant revenue increase of over 48% year-over-year, reaching $104 million in Q1 2025.
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Subscription services revenue grew by 78% to $68.4 million, with a 20% organic growth compared to Q1 2024.
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The company achieved a non-GAAP gross profit growth of nearly 35% year-over-year, with subscription service gross margins exceeding 69%.
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PAR Technology Corp (NYSE:PAR) successfully restarted the rollout of its PAR POS implementation with Burger King, receiving positive feedback.
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The company reported a strong performance in its Engagement Cloud business, with ARR increasing by 54%, including 18% organic growth.
Negative Points
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PAR Technology Corp (NYSE:PAR) reported a net loss from continuing operations of $25 million for Q1 2025, compared to a $20 million loss in the same period in 2024.
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The company faced challenges with the pause in the PAR POS implementation for Burger King, impacting growth in Q1.
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Despite growth, the Payments business remains dilutive to gross margins, although it is improving.
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The company is exposed to potential impacts from tariffs and global trade policy volatility, although it has taken steps to mitigate these risks.
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PAR Technology Corp (NYSE:PAR) has a significant portion of its ARR (approximately 20%) exposed to currency fluctuations, impacting reported financials.
Q & A Highlights
Q: With the BK rollout and new deals, could you speak to the growth cadence over the next three quarters and if you're still targeting 20% ARR organic growth for the year? A: We are targeting 20% plus organic growth for the year. The second half will see more impact from these deals and the big POS rollout. Expect gradual growth in Q2, similar to Q1, with a pickup in Q3 and Q4. Significant EBITDA expansion is also expected towards the end of the year. Savneet Singh, CEO