PAR Technology Corporation — Third Quarter 2026 Earnings Summary

Financial Performance

• Total revenue for Q3 2026 was $137.1 million, a 15.0% increase 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, a 17.6% increase year-over-year compared to $335.4 million.
• GAAP net loss for Q3 2026 was $9.0 million, an improvement of $9.1 million from the $18.2 million loss in Q3 2025.
• GAAP net loss from continuing operations for the nine months ended September 30, 2026, was $42.1 million, an improvement of $21.7 million from the $63.8 million loss in the prior year period.
• Diluted GAAP net loss per share was $0.22 for Q3 2026, an improvement of $0.23 from $0.45 in Q3 2025.
• Diluted GAAP net loss per share from continuing operations was $1.02 for the nine months ended September 30, 2026, an improvement of $0.56 from $1.58 in the prior year period.
• Non-GAAP Adjusted EBITDA for Q3 2026 was $17.1 million, an increase of $11.3 million from $5.8 million in Q3 2025.
• Non-GAAP Adjusted EBITDA for the nine months ended September 30, 2026, was $40.4 million, an increase of $24.4 million from $15.9 million in the prior year period.
• Non-GAAP diluted net income per share was $0.24 for Q3 2026, an increase of $0.19 from $0.05 in Q3 2025.
• Non-GAAP diluted net income per share was $0.52 for the nine months ended September 30, 2026, an increase of $0.47 from $0.05 in the prior year period.
• Subscription service gross margin percentage was 55.8% for Q3 2026 (up 50 basis points year-over-year) and 55.5% for the nine months ended September 30, 2026 (down 60 basis points year-over-year).
• Non-GAAP subscription service gross margin percentage was 66.0% for Q3 2026 (down 20 basis points year-over-year) and 65.4% for the nine months ended September 30, 2026 (down 180 basis points year-over-year).
• Cash and cash equivalents were $94.5 million as of September 30, 2026, compared to $79.6 million as of December 31, 2025.
• Long-term debt was $423.0 million as of September 30, 2026, compared to $374.1 million 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 raised its full-year 2026 outlook based on third-quarter results.
• For Q4 2026, the company expects total revenue between $138.0 million and $142.0 million and Adjusted EBITDA between $17.5 million and $19.0 million.
• For fiscal year 2026, the company now expects total revenue between $532.5 million and $536.5 million (up from the previous range of $516.0 million to $523.0 million) and Adjusted EBITDA between $57.9 million and $59.4 million (up from the previous range of $50.0 million to $53.0 million).
• Management indicated a healthy pipeline and strong momentum to finish the year strong and carry progress into 2027.
• PAR Intelligence is on track to surpass the initial 50,000-site deployment goal by the end of 2026.

Business Segments and Product Lines

• Annual Recurring Revenue (ARR) increased 18.1% year-over-year to $354.5 million as of September 30, 2026.
• Active Sites totaled 174.4 thousand as of September 30, 2026.
• Subscription service revenue for Q3 2026 was $85.9 million, up from $74.8 million in Q3 2025.
• Hardware revenue for Q3 2026 was $34.4 million, up from $29.9 million in Q3 2025.
• Professional service revenue for Q3 2026 was $16.9 million, up from $14.5 million in Q3 2025.
• The company continues to invest aggressively in expanding the capabilities and reach of PAR Intelligence.
• The Government segment results are reported as discontinued operations.

Market and Competitive Landscape

• The company operates an agentic operating platform for multi-unit brands across restaurant, retail, and high-volume commerce sectors.
• The platform integrates point of sale, digital ordering, loyalty, payments, and back-office systems with hardware and data.
• Management highlighted growing multi-product adoption among customers as a driver of performance.

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 customers.
• Macroeconomic trends such as recession, slowed economic growth, inflation, and fluctuating interest rates could impact results.
• Geopolitical events, tariffs, and trade disputes may affect operations, supply chains, and costs.
• Challenges related to retaining suppliers, managing inventory, and navigating manufacturing disruptions or logistics challenges exist.
• Actual results could vary materially due to factors including 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 the business's momentum, supported by enterprise deployments and a healthy pipeline.
• The tone emphasized operational discipline allowing for improving profitability while making long-term investments in AI and platform opportunities.
• Management noted the company is well-positioned to finish the year strong and carry progress into 2027.

Other Key Points

• A conference call regarding the results was held on November 5, 2026, at 4:30 p.m. Eastern time.
• The company revised its calculation of non-GAAP net income per share in the second quarter of 2026 to include the dilutive effect of equity-based awards and other potentially dilutive securities when reporting non-GAAP net income.
• The 2031 Notes were dilutive and included in the calculation of non-GAAP diluted weighted average shares outstanding for the three months ended September 30, 2026.
• The company recorded a gain on extinguishment of debt, net of $380,000 for the nine months ended September 30, 2026.
• An impairment loss of $5.4 million was recorded for the nine months ended September 30, 2026, related to the write-off of an indefinite-lived trademark and capitalized software development costs for the abandoned PAR Clear product.
• The Government segment was divested, with results reported as discontinued operations.