PAR Technology Q1 2025 Results: ARR Surges 52% as Subscription Revenues and Margins Expand

PAR Technology reported a strong Q1 2025, with Annual Recurring Revenue (ARR) reaching $282.1 million, up 52% from $185.7 million in Q1 2024, including 18% organic growth. Subscription service revenues grew 78% year-over-year (20% organic), totaling $68.4 million. The company achieved its third consecutive quarter of positive adjusted EBITDA, which came in at $4.5 million, a $14.7 million improvement over the prior year.

GAAP revenue was $103.9 million, up 48.2% from $70.1 million a year ago. The GAAP net loss from continuing operations was $24.5 million ($0.61 per share), narrowing from a $0.69 per share loss in Q1 2024. On a non-GAAP basis, diluted net loss per share was just $0.01, significantly better than the $0.47 loss last year.

Non-GAAP subscription service gross margin rose to 69.1%, a 340 basis point improvement. Gross margin expansion was driven by increasing adoption of multi-product deals across the company’s Operator Cloud (POS, Pay, OPS, TASK) and Engagement Cloud (Punchh, PAR Ordering, GoSkip, Plexure) platforms.

By segment, ARR was $164.9 million for Engagement Cloud and $117.2 million for Operator Cloud. Active sites reached 120.6 thousand and 59.0 thousand, respectively.
CEO Savneet Singh emphasized that their "Better Together" software thesis is driving growth through cross-product adoption. The balance sheet showed $91.7 million in cash and $392 million in long-term debt.

Despite a GAAP loss, PAR continues to show strong momentum in SaaS revenue growth, gross margin expansion, and subscription-based scale.

PAR Technology Corporation (NYSE: PAR) announced its financial results for the fourth quarter and full year 2024, highlighting significant revenue growth and operational milestones.

Key financial highlights include:
- Annual Recurring Revenue (ARR) grew to $276.0 million, a 102% increase, with 21% organic growth from the previous year.
- Quarterly subscription service revenues increased 95% year-over-year, with 25% organic growth.
- Total revenue for Q4 2024 reached $105.0 million, a 50.2% increase from Q4 2023.
- The company reported a net loss from continuing operations of $25.3 million in Q4, compared to a $21.5 million loss in Q4 2023.
- Adjusted EBITDA improved to $5.8 million in Q4 2024, compared to a loss of $7.4 million in Q4 2023.
- Full-year 2024 revenue was $350.0 million, a 26.5% increase from $276.7 million in 2023.
- Full-year net loss from continuing operations was $89.9 million, compared to $81.6 million in 2023.

Operational highlights:
- PAR acquired Delaget, LLC, a provider of restaurant analytics and business intelligence solutions.
- Engagement Cloud ARR (including Punchh, PAR Retail, and PAR Ordering) reached $159.1 million, while Operator Cloud ARR (including PAR POS, PAR Payment Services, and TASK) was $116.8 million.
- The company reported continued improvement in subscription service gross margins.

CEO Savneet Singh emphasized PAR's strong performance, calling 2024 a "milestone year" and highlighting continued confidence in the company's long-term growth.

PAR Technology will hold an earnings call on February 28, 2025, at 9:00 a.m. (Eastern), which can be accessed via its investor relations website.

For further details, the full earnings release and financial statements are available on PAR Technology’s website.

PAR Technology Corporation announced the completion of a $115 million private offering of 1.00% Convertible Senior Notes due 2030, which includes $15 million issued through an option exercised by the initial purchaser. These unsecured senior notes will bear interest at 1.00% per year, payable semiannually, and will mature on January 15, 2030. Key details include:

The notes are convertible under specific conditions prior to October 15, 2029, or at any time after that date until maturity. The initial conversion rate is 10.3089 shares of common stock per $1,000 of principal, equivalent to a conversion price of approximately $97.00 per share. Redemption is not allowed before January 20, 2028, but can occur afterward under certain conditions if the stock price exceeds 130 percent of the conversion price for a specified period.

Approximately $111.3 million in net proceeds will be used to fully repay a $90 million term loan from Blue Owl Capital, with the remaining funds allocated for general corporate purposes or potential acquisitions. The notes, offered under exemptions from registration requirements, are subject to customary anti-dilution adjustments. In the event of specific corporate actions, the conversion rate may increase.

Forward-looking statements in the announcement caution against uncertainties, including the use of proceeds and potential risks in management's discretion. Further details are outlined in the company's filings with the SEC.