PAR (PAR) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 19% year-over-year to $124 million, with strong profitability gains and improved operating leverage, driven by disciplined execution, AI-driven solutions, and multi-product sales.

• Adjusted EBITDA doubled to $8.9 million from $4.5 million year-over-year, reflecting cost control and operational efficiencies.

• Net loss from continuing operations improved to $16.2 million ($0.39/share), down from $24.5 million ($0.61/share) in Q1 2025.

• Completed the acquisition of Bridg, adding $14.4 million in ARR and enhancing identity resolution, data monetization, and AI capabilities.

• Launched PAR Intelligence, embedding AI across business units and accelerating adoption and monetization.

Financial highlights

• Total Q1 revenue was $124 million, up 19% year-over-year, with subscription services revenue up 15% to $79 million (63% of total revenue), hardware revenue up 34% to $29 million, and professional service revenue up 19% to $16.2 million.

• ARR ended Q1 at $330.1 million, up 16% year-over-year, with organic ARR up 11%.

• Adjusted EBITDA reached $8.9 million, nearly doubling year-over-year and improving sequentially for the fifth consecutive quarter.

• Non-GAAP net income was $3.9 million ($0.10/share), a $4.2 million improvement year-over-year.

• Subscription service gross margin was 55.6%, down 220 bps year-over-year; non-GAAP subscription service gross margin was 65.6%.

Outlook and guidance

• Q2 2026 revenue expected between $122.5 million and $127.5 million; adjusted EBITDA between $9.5 million and $11.5 million.

• Full-year 2026 revenue guidance is $500 million–$515 million, with adjusted EBITDA of $44 million–$47 million.

• Guidance includes ~$10 million in subscription revenue from Bridg, with minimal EBITDA impact.

• Management anticipates continued supply chain challenges, commodity cost volatility, and economic uncertainty due to global trade policies and tariffs.

• Operating leverage and profitability expected to improve further as cost actions and AI-enabled efficiencies take hold.