PAR Technology Corporation reported its fourth‑quarter 2025 results on February 26 2026, posting revenue of $120.1 million—$3.8 million, or 3.3 percent, above the consensus estimate of $116.32 million. Non‑GAAP earnings per share were $0.06, beating the $0.05 consensus by $0.01, or 20 percent.
The quarter also marked a turnaround from the prior year. In Q4 2024 the company recorded a non‑GAAP net loss of $37,000, whereas Q4 2025 produced a non‑GAAP net income of $2.6 million. Revenue grew 14 percent year‑over‑year, driven largely by an 18 percent increase in subscription‑service revenue, which now represents 63 percent of total sales. Subscription‑service margins expanded to 65.8 percent overall and 71 percent when the recent acquisition’s fixed‑contract costs are excluded, while hardware revenue faced margin pressure.
The revenue beat was largely a result of strong demand for the company’s subscription platform and the launch of new AI products such as Coach AI and PAR Drive AI. The partnership with Papa John’s, covering 3,200 sites over a decade, added a significant, recurring revenue stream. EPS outperformed expectations because the company maintained disciplined cost control, leveraged higher‑margin subscription sales, and benefited from improved operating leverage as revenue scaled.
Management guided for mid‑teens annual recurring revenue growth in 2026 and announced plans to generate approximately $15 million in annualized operating‑expense savings through AI‑driven automation. A portion of those savings will be reinvested in the AI platform, underscoring confidence in the company’s strategic pivot to AI‑powered hospitality solutions.
Despite the earnings beat, the market reacted negatively, with the stock falling 5.8 percent in after‑hours trading. Investors focused on the company’s GAAP loss of $20.9 million for the quarter and a decline in cash and cash equivalents from $108.1 million at the end of 2024 to $79.6 million at the end of 2025, which tempered enthusiasm for the non‑GAAP results.
The company also announced a new $100 million share‑repurchase program effective through February 26 2028, signaling a commitment to returning capital to shareholders while pursuing its AI strategy. Overall, the results reinforce PAR Technology’s trajectory toward a high‑margin, AI‑driven business model, even as investors remain cautious about short‑term cash and GAAP profitability.
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