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.