Multiproduct Adoption and Pipeline Momentum Offset Revenue Miss

Restaurant technology provider PAR Technology (NYSE:PAR) missed Wall Street’s revenue expectations in Q1 CY2025, but sales rose 48.2% year on year to $103.9 million. Its non-GAAP loss of $0.01 per share was 76.7% above analysts’ consensus estimates.

Is now the time to buy PAR? Find out in our full research report (it’s free).

Revenue: $103.9 million vs analyst estimates of $105.4 million (48.2% year-on-year growth, 1.4% miss)
Adjusted EPS: -$0.01 vs analyst estimates of -$0.04 (76.7% beat)
Adjusted EBITDA: $4.54 million vs analyst estimates of $4.09 million (4.4% margin, relatively in line)
Operating Margin: -15.2%, up from -38.2% in the same quarter last year
Annual Recurring Revenue: $282.1 million at quarter end, up 51.9% year on year
Market Capitalization: $2.53 billion

PAR Technology’s first quarter was marked by continued expansion of its multiproduct strategy, as management highlighted strong growth in subscription-based services and the successful integration of recent acquisitions. CEO Savneet Singh emphasized the company’s focus on cross-selling and integrating its product suite, which drove a notable increase in annual recurring revenue despite the temporary pause in the Burger King rollout. Singh noted, “Our Better Together thesis is working,” referencing the rising percentage of deals involving multiple products and the strong pipeline of new enterprise customers, especially in back office and engagement solutions.

Looking ahead, PAR’s guidance is shaped by expectations of a ramp in customer implementations and further margin expansion as new deals go live in the second half of the year. Singh cautioned that large deals can take time to roll out but reiterated management’s target for 20% plus organic ARR growth for the year. He also addressed macroeconomic uncertainty, stating, “We are fully prepared to deal with any potential slowdown,” and indicated that the company will continue to invest in both organic growth and targeted acquisitions.

PAR Technology’s management attributed Q1 performance to accelerating adoption of its integrated platform, multiproduct deal momentum, and improved operational leverage. The quarter’s results were affected by the temporary pause in a major Burger King rollout but offset by new customer wins and product launches.

Multiproduct Adoption Accelerates: Management reported that a growing percentage of new deals, especially in Operator Solutions, now include multiple PAR products. This approach increases customer lifetime value and makes the company’s offerings more difficult to replace, supporting higher retention rates.
Burger King Rollout Paused, Then Resumed: The pause in the Burger King point-of-sale implementation impacted Q1, but management highlighted that the rollout has restarted with positive feedback and expects the main revenue impact in Q3 and Q4. This temporary delay was offset by new customer signings and multiproduct deals.
Back Office and Engagement Solutions Growth: PAR launched its new PAR OPS line, combining Data Central and Delaget, and was selected as the preferred back-of-house vendor for Popeyes. Engagement Cloud also saw record growth in loyalty program usage and new digital offer distribution, with over 95% gross retention reported.
Ordering Platform Revamp: The company introduced Ordering 2.0, featuring enterprise menu management and AI-driven upsell capabilities. This contributed to the best sales quarter for online ordering in over two years and increased cross-sell rates within the product suite.
Minimal Tariff Exposure: Management discussed ongoing global trade uncertainties and tariffs but noted that hardware now makes up only 21% of revenues and that sourcing has shifted away from China, reducing tariff risk. The company’s supply chain is positioned to mitigate potential impacts from future trade policy changes.

Management’s outlook for the rest of the year centers on execution of multiproduct rollouts, further integration of recent acquisitions, and continued margin expansion from operating leverage. Strategic priorities emphasize growing recurring revenue and navigating macroeconomic uncertainty.

Second-half implementation surge: The ramp-up of large enterprise rollouts, including Burger King and new Tier 1 clients, is expected to drive revenue acceleration and adjusted EBITDA improvement in the latter half of the year.
Cross-sell and integration benefits: As more customers adopt multiple PAR products, management expects improved customer stickiness, higher average revenue per customer, and greater profitability from existing sales resources.
Macro and currency headwinds: Management acknowledged persistent macroeconomic uncertainty and foreign exchange impacts, particularly from international acquisitions, but expressed confidence in the company’s ability to adapt and sustain organic growth targets.

Mayank Tandon (Needham): Asked about the timing and scale of revenue impact from new deals and the resumed Burger King rollout. Management confirmed most growth from these wins is expected in the second half, with 20%+ organic ARR growth targeted for the year.
Stephen Sheldon (William Blair): Inquired about the effect of foreign currency fluctuations on reported ARR and the company’s international revenue mix. Management clarified that FX was the main driver of sequential ARR adjustments, with under 20% of ARR now international.
Will Nance (Goldman Sachs): Sought insights on the competitive environment, especially as smaller competitors move upmarket. Singh stated PAR remains competitive in enterprise RFPs, particularly due to its integrated suite, and sees continued high win rates for Tier 1 deals.
Charles Nabhan (Stephens): Asked about the gross margin impact of the Payments business and its relative scale. Management indicated Payments remains below company-wide gross margins but is improving and currently accounts for less than 10% of total revenue.
Andrew Harte (BTIG): Questioned the cross-sell opportunity and potential revenue per customer if full product adoption is achieved. Singh estimated full adoption could be a fourfold increase over current levels, though not all customers will reach this level.

In the coming quarters, the StockStory team will be watching (1) the pace and execution of large enterprise rollouts, especially for Burger King and other Tier 1 customers, (2) the impact of new product launches such as Ordering 2.0 and PAR OPS on cross-sell rates and recurring revenue growth, and (3) margin expansion as operating leverage from multiproduct adoption materializes. Additionally, we will track how management navigates macroeconomic uncertainty and foreign exchange volatility.

PAR Technology currently trades at a forward P/E ratio of 236.5×. In the wake of earnings, is it a buy or sell? Find out in our free research report.

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.