PAR Technology Corporation

What they do

PAR sells subscription services (SaaS, software support, managed platform development, and payment processing), hardware, and professional services to quick service, fast casual, and table service restaurants and to convenience and fuel retailers (C-Stores). Its subscription products are grouped into Engagement Cloud (PAR Engagement including Punchh and PAR Ordering, PAR Retail, and Plexure) and Operator Cloud (PAR POS and PAR PAY). Hardware includes point-of-sale terminals and related equipment, and professional services cover deployment and related work.

Revenue drivers

• Subscription service — SaaS, support, managed platform development, and transaction-based payment processing; the largest line at $83.4 million of Q2 2026 revenue (62.5% of total), up 16.0% year over year.
• Hardware — Point-of-sale and related hardware; $35.1 million of Q2 2026 revenue (26.3% of total), up 30.6% year over year, but hardware gross margin fell to $7.1 million from $7.3 million.
• Professional service — Deployment and related services; $14.9 million of Q2 2026 revenue (11.2% of total), up 9.5% year over year, with gross margin down 13.1% to $3.4 million.

Recent performance

Q2 2026 revenue was $133.4 million, up 18.7% from $112.4 million in Q2 2025, with subscription service up 16.0%, hardware up 30.6%, and professional service up 9.5%. GAAP net loss improved $4.1 million year over year to $16.9 million, and non-GAAP adjusted EBITDA improved $8.7 million to $14.3 million. GAAP diluted loss per share improved to $(0.41) from $(0.52), and non-GAAP diluted EPS was $0.18 versus $0.01. Subscription service gross margin was 55.2% GAAP and 65.1% non-GAAP, each slightly below the prior year. The quarter also included a $5.4 million intangible asset impairment loss with no comparable charge in Q2 2025.

Strategy

Management describes a strategy of a single unified platform connecting back-end systems to customer-facing channels across software, hardware, and payments. The company is investing in its platform, including a stated goal of deploying PAR Intelligence to 50,000 sites by year end. ARR and Active Sites are now reported on a total basis rather than split between Engagement Cloud and Operator Cloud, because multi-product arrangements are increasingly common and management no longer manages the business along those two product lines.

Risks

• Tariffs and trade policy — New tariffs and subsequent Section 301 duties of 10 to 12.5 percent on products from 80 countries affect countries where PAR sources components and hardware, and the company expects possible adverse effects on hardware revenue and hardware gross margin.
• Component availability — Increased demand for hardware products and components from AI data center construction creates uncertainty about whether products will be available in needed quantities, quality, or at favorable prices.
• Hardware and services margin pressure — In Q2 2026 hardware gross margin declined to $7.1 million from $7.3 million and professional service gross margin fell 13.1% to $3.4 million even as revenue grew.
• Sustained losses and cash use — PAR reported a 2025 net loss of $84.5 million, a Q2 2026 GAAP net loss of $16.9 million, and negative operating cash flow every year from 2021 through 2025, including -$27.2 million in 2025.

Outlook

PAR raised full-year 2026 guidance to total revenue of $516.0 million to $523.0 million (from $500.0 million to $515.0 million) and adjusted EBITDA of $50.0 million to $53.0 million (from $44.0 million to $47.0 million). For Q3 2026 it expects revenue of $128.0 million to $132.0 million and adjusted EBITDA of $13.5 million to $14.5 million. Management said it ended Q2 with a strong pipeline to support second-half targets and to set up for 2027.