PAR (PAR) investor relations material

Company transformation and product strategy

• Transitioned from a hardware-focused business to a software-driven platform, emphasizing end-to-end solutions for enterprise restaurants.

• Acquisitions like Stuzo (PAR Retail), Task, and Delegate have expanded product offerings, international reach, and operational capabilities.

• Integration of acquired companies has been successful, with Stuzo cited as a standout, and all customers migrating to a unified platform by year-end.

• Focus on consolidating restaurant tech stacks to address fragmentation and drive growth above competitors.

• Product-led M&A remains a priority, targeting solutions that expand TAM or strengthen the collective offering.

Market dynamics and financial performance

• Q2 saw significant weakness in restaurant client sales and traffic, attributed to macroeconomic uncertainty and a shift from quick service to full-service dining.

• Digital ordering and delivery channels continue to grow, offsetting declines in traditional traffic.

• Most revenue is resilient to macro downturns, with payments and loyalty segments seeing increased interest during weak periods.

• Hardware sales saw a temporary boost due to tariff fears, but software remains the primary driver of decisions.

• Sustainable ARR growth is projected in the mid-teens, with potential to return to 20%+ if large RFPs are won.

AI and technology innovation

• AI is leveraged internally for development efficiency, support, and automating manual processes, resulting in measurable cost savings.

• New AI-powered products like Coach AI provide in-store operators with actionable insights and automation, with future plans to integrate loyalty and marketing functions.

• AI-driven marketing tools will enable more personalized, one-to-one customer targeting and campaign management.

• Executive leadership is tasked with mapping an AI-first vision for each department over the next two years.

• The PAR data platform aims to unify disparate data sources, serving as a foundation for advanced AI applications and insights.