PAR Technology Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for Q3 2026 was $137.1 million, an increase of 15.0% year-over-year compared to $119.2 million in Q3 2025.
• Year-to-date revenue for the nine months ended September 30, 2026, was $394.5 million, up 17.6% from $335.4 million in the prior period.
• GAAP net loss for Q3 2026 was $9.0 million ($0.22 per diluted share), improving from a $18.2 million loss ($0.45 per diluted share) in Q3 2025.
• GAAP net loss from continuing operations for the nine months ended September 30, 2026, was $42.1 million ($1.02 per diluted share), an improvement from $63.8 million ($1.58 per diluted share) in the prior year period.
• Non-GAAP Adjusted EBITDA for Q3 2026 was $17.1 million, compared to $5.8 million in Q3 2025.
• Non-GAAP Adjusted EBITDA for the nine months ended September 30, 2026, was $40.4 million, compared to $15.9 million in the prior period.
• Non-GAAP diluted net income per share for Q3 2026 was $0.24, compared to $0.05 in Q3 2025.
• Non-GAAP diluted net income per share for the nine months ended September 30, 2026, was $0.52, compared to $0.05 in the prior period.
• Subscription service gross margin percentage (GAAP) was 55.8% in Q3 2026, up 50 basis points from 55.3% in Q3 2025.
• Subscription service gross margin percentage (Non-GAAP) was 66.0% in Q3 2026, down 20 basis points from 66.2% in Q3 2025.
• Cash and cash equivalents were $94.5 million as of September 30, 2026, compared to $79.6 million as of December 31, 2025.
• Total debt was $423.0 million as of September 30, 2026, compared to $394.0 million ($374.1 million long-term + $19.9 million current) as of December 31, 2025.
• Customer deposits and deferred service revenue were $33.6 million as of September 30, 2026, compared to $27.9 million as of December 31, 2025.

Guidance and Future Outlook:

• PAR Technology raised its full-year 2026 outlook based on third-quarter results.
• Q4 2026 revenue guidance is $138.0 million to $142.0 million.
• Q4 2026 Adjusted EBITDA guidance is $17.5 million to $19.0 million.
• Full-year 2026 revenue guidance is $532.5 million to $536.5 million, up from the previous range of $516.0 million to $523.0 million.
• Full-year 2026 Adjusted EBITDA guidance is $57.9 million to $59.4 million, up from the previous range of $50.0 million to $53.0 million.
• Management expects to finish the year strong and carry progress into 2027.

Business Segments and Product Lines:

• Annual Recurring Revenue (ARR) increased 18.1% year-over-year to $354.5 million at the end of Q3 2026.
• Active Sites totaled 174.4 thousand as of September 30, 2026.
• PAR Intelligence is on track to surpass the initial 50,000-site deployment goal by the end of 2026.
• Revenue breakdown for Q3 2026: Subscription service ($85.9 million), Hardware ($34.4 million), and Professional service ($16.9 million).
• Revenue breakdown for the nine months ended September 30, 2026: Subscription service ($247.8 million), Hardware ($98.7 million), and Professional service ($48.0 million).
• The Government segment results are reported as discontinued operations.

Market and Competitive Landscape:

• Management highlighted continued acceleration in growth and profitability supported by enterprise deployments and growing multi-product adoption.
• The company maintains a healthy pipeline positioning it to capture significant AI and platform opportunities.
• 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, customers, 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 involving the United States and other countries may affect the business.
• Supply chain challenges, including manufacturing disruptions, logistics challenges, shipping delays, and inventory costs, pose risks.
• Actual results may vary materially due to stock-based compensation, transaction costs, severance, impairment losses, and debt extinguishment activity.

Management Commentary and Tone:

• CEO Savneet Singh stated that third-quarter performance demonstrated continued acceleration in growth and profitability.
• Management expressed confidence in strong momentum across the business, driven by enterprise deployments and multi-product adoption.
• The company is investing aggressively in expanding PAR Intelligence capabilities and reach.
• Management emphasized operational discipline delivering improving profitability while making long-term investments.

Other Key Points:

• The Company revised its calculation of non-GAAP net income per share beginning in the second quarter of 2026 to reflect current and deferred income tax effects and include dilutive equity-based awards.
• A conference call regarding the results is scheduled for November 5, 2026, at 4:30 p.m. Eastern.
• The Company recognized a gain on extinguishment of debt of $380,000 for the nine months ended September 30, 2026.
• The Company recorded an impairment loss of $5.4 million for the nine months ended September 30, 2026, related to a trademark and abandoned product.
• The Company reported litigation expenses of $1.5 million for Q3 2026 and $2.7 million for the nine months ended September 30, 2026.