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PAR (PAR) investor relations material
PAR Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 2025 revenue reached $119.2 million, up 23% year-over-year, driven by strong subscription and hardware sales.
Annual Recurring Revenue (ARR) ended at $298.4 million, up 22% year-over-year, with 15% organic growth and a sequential increase of $11.7 million.
Adjusted EBITDA was $5.8 million, up from $2.4 million in Q3 2024, reflecting improved profitability and positive operating cash flow.
Net loss from continuing operations improved to $18.2 million ($0.45/share), compared to $20.7 million ($0.58/share) in Q3 2024.
AI-driven product innovation, including the launch of PAR AI and Coach AI, is enhancing operational efficiency and customer value.
Financial highlights
Subscription service revenue rose 25% year-over-year to $74.8 million, accounting for about 63% of Q3 revenue.
Hardware revenue grew 32% to $29.9 million, driven by increased demand and tariff-related order pull-ins.
Gross margin was $49 million, up 14% year-over-year, with subscription service gross margin stable at 55.3% and non-GAAP margin at 66.2%.
Non-GAAP net income was $2.5 million ($0.06/share), a $5.6 million improvement year-over-year.
Year-to-date revenue increased 36.9% to $335.4 million compared to the same period last year.
Outlook and guidance
On track to deliver nearly $450 million in 2025 revenue, with about two-thirds recurring SaaS.
Targeting mid-teens organic ARR growth in the near term, with potential acceleration in 2026 and 2027.
Management expects continued above-market revenue growth, supported by large tier-one deals and AI-driven innovation.
Hardware and professional service margins are expected to normalize to the mid-20% range as tariff impacts are mitigated.
Available cash and equivalents of $92.5 million are expected to meet operating needs for at least the next 12 months.
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