PAR Technology Corporation Q4 FY2025 earnings call

• PAR is becoming an AI-driven hospitality platform company with two verticals (restaurants and retail) as mid-teens ARR growers.
• Q4 delivered revenue growth, non-GAAP net income for third consecutive quarter, adjusted EBITDA $7M. Full-year non-GAAP net income improved over $30M y/y.
• ARR exited Q4 at $315.4M, 15% organic growth, second-half growth more than double first-half, over 80% of deals multi-product.
• Operator solutions: Selected by Papa John's, bookings record highs, PAR Ops evolving from analytics to intelligence with Coach AI.
• Retail: Strong quarter, launch of PAR Drive AI, strong performance from hardware demand and enterprise customers.
• Mentioned cost pressures on key components like solid-state drives, memory, processors due to AI infrastructure build-outs

In Q4 2025, revenue was $120.1 million, up 14% y/y. Full-year revenue reached $455.5 million, up $105 million y/y, including 21% organic growth and subscription services growing 40%. ARR exited Q4 at $315.4 million, 15% organic growth. Operator solutions: Q4 revalidated platform strategy, Papa John's partnership, bookings hit record highs. Retail: Strong quarter with scale, engagement, execution, launch of PAR Drive AI. Hardware: $28 million revenue in Q4, up 7% y/y, driven by hardware attachment into software customer base

• Expect ARR to continue mid-teens growth, second half stronger than first half as managing legacy low margin customers in Q1.
• Expect to eliminate roughly $15M annualized OpEx through AI-driven automation by end of Q1.
• Deploy OpEx savings into AI platform production to deliver code faster, bring new AI-led products to market

• Significant cost pressures on key components like solid-state drives, memory, processors due to AI infrastructure build-outs tightening availability and elevating pricing across compute supply chain. Expected to persist until 2027

Q: George Sutton asked about how AI speeds up large enterprise deals.

A: As restaurants adopt AI faster, it should accelerate sales processes from vendors that can provide AI tools to become AI native, potentially speeding up deals we're working on.

Q: Mayank Tandon asked about restaurant market state and ARR guidance.

A: Restaurant market has mixed traffic but is a good environment to sell, first half last year painful, Q3 better, Q4 stabilized. ARR first half slower than second half, mid-teens growth expected with upside from new AI product launches and large tier one opportunities.

Q: Steven Sheldon asked about restaurant brand willingness to make software changes and R&D increase.

A: Great environment to be in the category, R&D increase due to aggressive AI investments, pushing into large tier one opportunities, and modernizing every product at PAR.

Q: Samad Samana asked about Papa John's ARPU and mid-teens ARR guidance.

A: Market pricing for Papa John's deal, escalators in line with current contracts, mid-teens ARR guidance 70-30 new logo vs existing customer.

Q: Andrew Hart asked about balance sheet, buyback authorization, and growth.

A: Want optionality to return capital, expect strong year, majority of 2026 growth plan in place with upside from new AI products and large tier one opportunities.

Q: Charles Nopon asked about supply chain impact on RFP activity and profitability.

A: Not seeing impact on revenue yet, hardware margins expected to be 20%-21%, subscription services margins to hold, supporting EBITDA growth.

Q: Maxwell Michaelis asked about Bridge technology acquisition and M&A vs other investments.

A: Will invest in Bridge technology acquisition, it's expected to be profitable within PAR, M&A lower on priority list given stock price