PAR (PAR) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $120.1 million, up 14.4% year-over-year, driven by subscription services and hardware growth.

• Annual Recurring Revenue (ARR) was $315.4 million in Q4 2025, up 16% year-over-year, with 15% organic growth.

• Adjusted EBITDA for Q4 2025 was $7.0 million, up $1.3 million year-over-year, maintaining profitability.

• Major AI investments included the launch of Coach AI, now deployed in nearly 900 stores, and broad customer adoption of new AI-native products.

• Secured a major contract with Papa Johns for next-generation in-restaurant technology, with future international expansion potential.

Financial highlights

• Subscription service revenue grew 18% year-over-year to $76.1 million, now 63% of total revenue.

• Q4 2025 net loss from continuing operations was $20.9 million, an improvement of $4.4 million year-over-year.

• Non-GAAP net income for Q4 2025 was $2.6 million ($0.06 EPS), marking the third consecutive quarter of non-GAAP profitability.

• Hardware revenue was $28 million, up 7% year-over-year; professional services revenue was $16 million.

• Gross margin increased by 10% compared to Q4 2024; non-GAAP subscription service gross margin rose 13% year-over-year.

Outlook and guidance

• Management expects mid-teens ARR growth in 2026, with stronger performance in the second half.

• Margin profile is expected to improve as legacy low-margin customers are managed out in early 2026.

• Operational efficiency to increase, targeting $15 million annualized OpEx reduction via AI automation by end of Q1.

• Continued investment in AI platform and product development, with upside from new AI launches and large enterprise deals.

• Strategic focus on becoming an AI platform partner for customers navigating an AI-first world.