PAR Technology Corporation — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenue for Q2 2026 was $133.4 million, an 18.7% increase year-over-year from $112.4 million in Q2 2025.
• Year-to-date revenue for the six months ended June 30, 2026, was $257.4 million, a 19.0% increase from $216.3 million in the same period in 2025.
• GAAP net loss for Q2 2026 was $16.9 million ($0.41 per diluted share), compared to a net loss of $21.0 million ($0.52 per diluted share) in Q2 2025.
• GAAP net loss from continuing operations for the six months ended June 30, 2026, was $33.1 million ($0.80 per diluted share), compared to $45.6 million ($1.13 per diluted share) in 2025.
• Adjusted EBITDA for Q2 2026 was $14.3 million, an improvement of $8.7 million compared to $5.5 million in Q2 2025.
• Adjusted EBITDA for the six months ended June 30, 2026, was $23.2 million, an improvement of $13.1 million compared to $10.1 million in 2025.
• Non-GAAP diluted net income per share for Q2 2026 was $0.18, compared to $0.01 in Q2 2025.
• Non-GAAP diluted net income per share for the six months ended June 30, 2026, was $0.26, compared to a loss of $0.00 in 2025.
• Subscription service gross margin percentage (GAAP) was 55.2% in Q2 2026 versus 55.3% in Q2 2025.
• Non-GAAP subscription service gross margin percentage was 65.1% in Q2 2026 versus 66.4% in Q2 2025.
• Cash and cash equivalents were $77.4 million as of June 30, 2026, down from $79.6 million as of December 31, 2025.
• Long-term debt was $422.4 million as of June 30, 2026, up from $374.1 million as of December 31, 2025.
• Customer deposits and deferred service revenue were $23.2 million as of June 30, 2026, down from $27.9 million as of December 31, 2025.

Guidance and Future Outlook

• PAR Technology raised its full-year 2026 outlook based on Q2 results.
• Q3 2026 revenue is expected to be between $128.0 million and $132.0 million.
• Q3 2026 Adjusted EBITDA is expected to be between $13.5 million and $14.5 million.
• Full-year 2026 revenue is now expected to be between $516.0 million and $523.0 million (previously $500.0 million to $515.0 million).
• Full-year 2026 Adjusted EBITDA is now expected to be between $50.0 million and $53.0 million (previously $44.0 million to $47.0 million).
• Management targets deploying PAR Intelligence to 50,000 sites by the end of 2026.

Business Segments and Product Lines

• Subscription service revenue for Q2 2026 was $83.4 million, up from $71.9 million in Q2 2025.
• Hardware revenue for Q2 2026 was $35.1 million, up from $26.9 million in Q2 2025.
• Professional service revenue for Q2 2026 was $14.9 million, up from $13.6 million in Q2 2025.
• Annual Recurring Revenue (ARR) increased 17% year-over-year to $338.0 million at the end of Q2 2026.
• Active Sites totaled 174.3 thousand as of June 30, 2026.
• Beginning in Q2 2026, ARR and Active Sites are presented on a total basis rather than disaggregated into Engagement Cloud and Operator Cloud product lines.
• The Company recorded a $5.4 million impairment loss related to the write-off of an indefinite-lived trademark acquired in the Stuzo Acquisition and the write-off of capitalized software development costs related to the abandoned PAR Clear product.

Market and Competitive Landscape

• Management highlighted a strong pipeline to support second-half targets and set up for strong 2027 performance.
• The Company is making large investments in its platform to capture the AI opportunity.
• The platform serves multi-unit brands across restaurant, retail, and high-volume commerce sectors.

Risks and Challenges

• Forward-looking statements are subject to risks including the ability to successfully develop or acquire new products and integrate AI tools.
• Risks include the ability to add and retain Active Sites and integration partners.
• Macroeconomic trends such as recession, slowed economic growth, inflation, and fluctuating interest rates could impact results.
• Geopolitical events, tariffs, and trade disputes could affect operations.
• Supply chain disruptions, manufacturing challenges, and logistics issues remain potential risks.
• Actual results could vary materially from forward-looking guidance due to factors such as stock-based compensation, transaction costs, severance, and debt extinguishment activity.

Management Commentary and Tone

• CEO Savneet Singh stated that Q2 performance highlighted an acceleration in revenue and a steep increase in profitability.
• Management expressed confidence in hitting financial goals and deploying PAR Intelligence to 50,000 sites by year-end.
• The tone emphasized operational discipline in balancing growing profitability with long-term investments.

Other Key Points

• The Government segment results are reported as discontinued operations.
• The Company recorded a $380,000 gain on the extinguishment of debt in the six months ended June 30, 2026, compared to a $5.8 million loss in the same period in 2025.
• Stock-based compensation was $6.8 million for Q2 2026 and $14.0 million for the six months ended June 30, 2026.
• A conference call regarding these results was held on August 6, 2026.
• The Company revised its calculation of non-GAAP net income per share in Q2 2026 to include the dilutive effect of equity-based awards and other potentially dilutive securities when reporting non-GAAP net income.