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    PAR
    Earnings call· Jun 2026(Q2 FY26)

    PAR TECHNOLOGY Q2 FY26 earnings call PAR

    Aug 6, 2026 Source

    Executive summary

    PAR Technology Q2 FY26 — Strong Profitability and Accelerated ARR Growth

    PAR Technology delivered strong Q2 FY26 results, exceeding expectations with significant adjusted EBITDA expansion and accelerated ARR growth, driven by its platform strategy and multiproduct adoption. The company is aggressively expanding its total addressable market and leveraging AI to enhance product efficacy and operational efficiencies. Management remains confident in its ability to balance growth and profitability, with a focus on continued execution and strategic investments in AI for future monetization.

    Highlights

    5

    • Exited the quarter with $338 million of ARR, representing over 17% year-over-year growth and 12.3% organic growth.

    • Generated adjusted EBITDA of $14.3 million in Q2, an improvement of nearly $9 million from Q2 last year and $5.3 million sequentially.

    • Total revenues reached $133 million for Q2 2026, an increase of 19% compared to the same period in 2025.

    • Non-GAAP OpEx as a percent of total revenue improved 1,000 basis points to 38% from Q2 2025.

    • PAR Intelligence user base expanded to roughly 20,000 sites in Q2, with another 20,000 planned for Q3, on track for 50,000 live sites by FY26.

    Concerns

    4

    • GAAP net loss for Q2 2026 was $17 million, compared to a net loss of $21 million in Q2 2025.

    • Non-GAAP subscription service margin slightly decreased to 65.1% from 66.4% in Q2 2025, reflecting a shift in product mix due to Bridg operations.

    • Hardware margin declined to 20% from 27% in the prior year, impacted by current tariff and supply chain constraints.

    • Professional Service margin decreased to 23% from 29% in the prior year, due to timing of hardware-related service contracts.

    Guidance & targets

    10
    CategoryTargetConfidence
    Total Revenue
    $128M to $132M
    high materiality
    High
    Adjusted EBITDA
    $13.5M to $14.5M
    high materiality
    High
    Total Revenue
    $516M to $523M
    high materiality
    High
    Adjusted EBITDA
    $50M to $53M
    high materiality
    High
    Hardware margins
    low 20s%
    medium materiality
    Medium
    Professional Service margins
    mid- to upper 20s%
    medium materiality
    Medium
    Subscription Service revenue growth
    continue to strengthen
    high materiality
    High
    OpEx
    relatively flat to modest growth
    medium materiality
    Medium
    PAR Intelligence live sites
    50,000
    high materiality
    High
    AI contribution to revenue growth
    more meaningfully
    high materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Restaurant Vertical
    Delivered a strong second quarter, securing pipeline and backlog for back-half acceleration. Customers are increasingly selecting PAR for integrated solutions. Key wins included Guthrie's Chicken, Sarku Japan, Nuke's, Burgerville, Brady's, and Bad A** Coffee, all with multi-products across POS, loyalty, ordering, payments, and back office solutions. Burger King activations are ahead of plan, and Papa John's platform deployment is well-positioned to kick off implementation later this year. PAR Ops activated nearly 700 locations.
    Multiproduct attachment on Q2 new engagement: nearly 100%
    		————
    Retail
    Continued to perform exceptionally well, with encouraging scale of opportunities. Launched Bola Energy and two other enterprise retailers. PAR Intelligent footprint expanded to roughly 17,000 sites, surpassing initial adoption goals. Completed full rollout of Agenetic AI to all developers, improving engineering productivity.
    PAR Intelligent footprint: roughly 17,000 sites
    		————

    Operational metrics

    18
    Adjusted EBITDA
    $14.3Mup $9M YoY, up $5.3M QoQ, up 8.7% YoY
    Q2 FY26

    Adjusted EBITDA exceeded previously forecasted range of $9.5M to $11.5M.

    Non-GAAP Net Income
    $7.5Mup $6.9M YoY
    Q2 FY26

    Compared to $0.6M in Q2 FY25.

    Non-GAAP EPS
    $0.18up $0.17 YoY
    Q2 FY26

    Diluted earnings per share, compared to $0.01 in Q2 FY25.

    Non-GAAP gross margin
    65.1%down 1.3 percentage points YoY
    Q2 FY26

    Compared to 66.4% in Q2 FY25, reflecting a shift in product mix due to Bridg operations. Expected to reverse over next quarters.

    Gross margin dollars
    $46Mup $6M YoY, up 60% YoY
    Q2 FY26

    Compared to $40M in Q2 FY25.

    Hardware margin
    20%down 7 percentage points YoY
    Q2 FY26

    Compared to 27% in prior year. In line with recent quarterly results, reflecting tariff and supply chain constraints.

    Professional Service margin
    23%down 6 percentage points YoY
    Q2 FY26

    Compared to 29% in prior year. Negatively impacted by timing of hardware-related service contracts.

    Operating expenses as % of total revenue
    38%down 1000 bps YoY
    Q2 FY26

    Significant improvement from 48% in Q2 FY25, demonstrating ability to scale efficiently and drive operating leverage.

    R&D expense as % of sales
    15%
    Q2 FY26

    Part of OpEx efficiency focus.

    Sales and marketing expense as % of sales
    8%
    Q2 FY26

    Part of OpEx efficiency focus.

    G&A expense as % of sales
    14%
    Q2 FY26

    Part of OpEx efficiency focus.

    Cash and investments balance
    $77Mflat QoQ
    as of June 30, 2026

    Free cash flow of $3M offset by $3M cash use for final payout of 2026 notes.

    ARPU CAGR
    8%
    3-year blended

    Demonstrates improving unit economics.

    Platform deal term length
    roughly doublevs point solution
    Q2 FY26

    Indicates increased customer commitment and stickiness.

    AI tooling estimated time savings
    $14.9M
    per year

    100% of full-time employees enabled on and using AI tooling.

    PAR Ops activations
    nearly 700
    Q2 FY26

    Strongest quarter ever for PAR Ops.

    PAR Ordering win rates
    above 50%
    Q2 FY26

    Highest success rate of any major product in the portfolio.

    Bridg new committed ARR
    $1.3M
    Q2 FY26

    Achieved in just a few months since closing the acquisition.

    Industry KPIs

    5
    MetricValueDetails
    Revenue growth$133MUSD
    Arr net new arr$338MUSD
    Large deal new logo metrics6deals
    Multi product platform attachnearly 100%%
    Ai product adoption monetization20,000sites

    Orderbook & backlog

    2
    Operator Product backlogSubstantialQ2 FY26

    Positions the company to reach ARR targets with additional upside if execution continues at current pace.

    Go-lives backlogLargeQ2 FY26

    Driven by Burger King and Papa John's rollouts, expected to contribute to second half ARR growth.

    Product announcements

    3
    ProductTypeDetails
    PAR Intelligenceexpansion
    Agenetic AIlaunch
    Catering capabilitiesupdate

    Deals & partnerships

    10
    BridgAcquisition of data intelligence platform

    Rapid transition from integration to execution, becoming an important part of PAR's data intelligence foundation for long-term AI strategy.

    Guthrie's ChickenMultiproduct platform win

    Included multi-products across point-of-sale, loyalty, ordering, payments, and back office solutions.

    Sarku JapanMultiproduct platform win

    Included multi-products across point-of-sale, loyalty, ordering, payments, and back office solutions.

    Nuke'sMultiproduct platform win

    Included multi-products across point-of-sale, loyalty, ordering, payments, and back office solutions.

    BurgervilleMultiproduct platform win

    Included multi-products across point-of-sale, loyalty, ordering, payments, and back office solutions.

    Brady'sMultiproduct platform win

    Included multi-products across point-of-sale, loyalty, ordering, payments, and back office solutions.

    Bad A** CoffeeMultiproduct platform win

    Included multi-products across point-of-sale, loyalty, ordering, payments, and back office solutions.

    Bola EnergyEnterprise retailer launch

    Launched as an enterprise retailer on the PAR platform.

    Burger KingPOS activations

    PAR POS activations remain ahead of plan, with potential upside to current year-end target.

    Papa John'sPlatform deployment

    Completed key development milestones and well-positioned to kick off implementation plan later this year.

    Risks & headwinds

    3
    Hardware margin compressionCurrent

    20% in Q2 FY26 vs 27% in Q2 FY25

    Mitigation: Pricing actions continue to offset component cost pressures; margins expected to stabilize in low 20s% moving forward.

    Subscription service margin impact from product mix shiftQ2 FY26

    65.1% in Q2 FY26 vs 66.4% in Q2 FY25

    Mitigation: Expected to reverse over the next few quarters as planned business model changes to Bridg are executed post-acquisition.

    Professional service margin impact from timing of contractsQ2 FY26

    23% in Q2 FY26 vs 29% in Q2 FY25

    Mitigation: Outlook on go-forward Professional Service margins has not changed, expected to be in the mid- to upper 20s%.

    What to watch in Q3 FY26

    4

    ARR growth acceleration

    H2 FY26 (Q3 and Q4)
    Current17% YoY (12.3% organic) in Q2 FY26
    TargetMeaningfully larger than H1, higher teens

    Why it matters

    Verifies the company's ability to execute on its backlog and pipeline, driving top-line expansion.

    As such, we expect second half ARR growth to be meaningfully larger than the first half, a growth phasing📎 that is similar to what we experienced in 2025.

    Q&A highlights

    7

    Can you provide more detail on the confidence in the second half ARR ramp, especially regarding the proportion of opportunities already signed for the year?

    Management expressed high confidence in the second half ARR ramp, citing good visibility across Operator Cloud, Retail, Engagement, and Ordering. They noted that visibility has increased, supporting the commentary on acceleration.

    “We feel very good from now at the end of the year, we've got good visibility on the Operators, Cloud side, the Retail side, and we're getting there on Engagement Ordering. So we feel pretty good where we are now. Visibility has increased, which is why we gave the commentary that we feel good about the second half ramp.”

    asked by George Sutton · answered by Savneet Singh

    2 min read6 chapters

    Detailed Narrative

    01

    Platform Strategy and Multiproduct Adoption

    PAR's core thesis revolves around its platform strategy, which continues to prove its value. Customers are increasingly adopting multiple products across the portfolio, leading to larger and more strategic partnerships. Multiproduct attachment on Q2 new engagements was nearly 100%, reinforcing the strength of integrated solutions over individual products. This approach is seen as foundational for becoming the core restaurant AI partner, as AI features require multiple systems working together.

    02

    AI Strategy and PAR Intelligence Expansion

    The company's AI strategy leverages unique data, workflows, and operational contexts across its platform. PAR Intelligence user base grew to roughly 20,000 sites in Q2, with another 20,000 planned for Q3, aiming for 50,000 live sites by FY26. The focus for 2026 is on embedding AI in customer workflows and improving value at scale, with 2027 anticipated as an inflection point for meaningful AI revenue contribution through premium capabilities and expanded attach rates. AI tooling has also led to $14.9 million per year in estimated time savings across internal functions.

    03

    Operational Efficiencies and Profitability

    PAR demonstrated significant profitability improvement while continuing to grow. Adjusted EBITDA for Q2 was $14.3 million, a substantial increase from the prior year. This was driven by support efficiency improvements and automation in point-of-sale, scale benefits in ordering, and optimized AI investments. Non-GAAP OpEx as a percent of total revenue improved by 1,000 basis points year-over-year, reflecting a structurally reset cost base and strong operating leverage.

    04

    Product Innovation and Market Traction

    PAR is accelerating product deployment, increasing delivery velocity threefold compared to a year ago. PAR Ordering delivered its best-ever quarter in Q2, closing 6 new deals, with 3 migrating from a major legacy provider. Growing traction in Catering, a key roadmap investment, contributed to 2 of these wins. The company's win rates for PAR Ordering are above 50%, the highest among its major products, indicating strong competitive positioning.

    05

    TAM Expansion and Bridg Acquisition Impact

    PAR is actively expanding its total addressable market through new product initiatives and strategic acquisitions. The Bridg acquisition, closed in late March, has rapidly transitioned from integration to execution, adding over $1.3 million in new committed ARR from 2 customers with agreements extending through 2029. Bridg is seen as a crucial part of PAR's data intelligence foundation, powering its long-term AI strategy and validating customer demand for data-driven insights.

    06

    ARR Growth and Backlog Conversion

    ARR exited Q2 at $338 million, growing 17% year-over-year (12.3% organic). The company anticipates a meaningful acceleration in ARR growth in the second half of the year, similar to 2025 phasing📎, driven by a large backlog of go-lives from Burger King and Papa John's rollouts, as well as a healthy pipeline of new deals across products and verticals. The shift towards multiproduct deals is expected to drive strong ARR growth in later years.

    AI-generated summary of the company’s earnings call. Not investment advice.