PAR (PAR) investor relations material

Executive summary

• Q2 2026 revenue rose 19% year-over-year to $133.4 million, with ARR up 17% to $338 million and organic ARR up 12.3%.

• Adjusted EBITDA reached $14.3 million, up $8.7 million from Q2 2025 and $5.3 million sequentially; net loss narrowed to $16.9 million ($0.41/share) from $21 million ($0.52/share) year-over-year.

• Multi-product adoption reached nearly 100% in new deals, reinforcing the unified platform strategy and driving larger, more strategic partnerships.

• AI and PAR Intelligence adoption accelerated, with 20,000 live sites at quarter-end and another 20,000 planned for Q3, supporting long-term monetization goals.

• Profitability improved through operational efficiencies, automation, and disciplined investment in AI and product innovation.

Financial highlights

• Total Q2 revenue was $133.4 million, up 19% year-over-year; subscription service revenue grew 16% to $83.4 million, representing 63% of total revenue.

• Hardware revenue was $35.1 million, up 31% year-over-year; professional service revenue was $14.9 million, up 10%.

• Gross margin decreased to 42.4% from 45.4% year-over-year, with subscription service gross margin stable at 55.2% GAAP and 65.1% non-GAAP.

• Adjusted EBITDA margin improved to 10.7% in Q2 2026, a 580 basis point increase year-over-year.

• Net loss per share improved to $(0.41) from $(0.52) year-over-year; non-GAAP net income was $7.5 million ($0.18/share), up from $0.6 million ($0.01/share).

Outlook and guidance

• Full-year 2026 revenue guidance raised to $516–$523 million (from $500–$515 million); adjusted EBITDA guidance raised to $50–$53 million (from $44–$47 million).

• Q3 2026 revenue expected at $128–$132 million; adjusted EBITDA at $13.5–$14.5 million.

• Second half ARR growth expected to outpace first half, driven by large backlogs and new wins; hardware revenue expected to normalize after a historic Q2.

• Management anticipates ongoing supply chain challenges, commodity cost volatility, and economic uncertainty due to evolving global trade policies and tariffs.

• Continued investment in AI-enabled features and platform expansion is expected.