The Top 5 Analyst Questions From PAR Technology's Q2 Earnings Call

PAR Technology’s second quarter results were met with a negative market reaction, as execution challenges and slower-than-anticipated rollouts weighed on sentiment. Despite delivering revenue above Wall Street expectations, management acknowledged that delays in point-of-sale (POS) and payments implementations, particularly with large customers, hampered the pace of growth. CEO Savneet Singh described the quarter as one where “the POS business has progressed slower than we initially forecasted for 2025,” emphasizing that signed deals remain intact but are taking longer to convert into revenue.

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

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From PAR Technology’s Q2 Earnings Call

• Mayank Tandon (Needham): Asked if the Burger King rollout and new go-lives would reaccelerate subscription growth. CFO Bryan Menar said incremental quarter-on-quarter acceleration is expected, but year-over-year growth will lag due to a lower starting base.
• Stephen Sheldon (William Blair): Inquired about the timing and scope of the two mega Tier 1 deals. CEO Savneet Singh said both are POS-focused global deals, with decisions expected in the remainder of 2025 and early 2026.
• Andrew Harte (BTIG): Asked what products typically get attached to a POS sale. Singh explained that payments and back-office solutions are the most common add-ons, and multi-product deals can double or more the average revenue per user.
• William Nance (Goldman Sachs): Questioned when ARR growth could return to 20%. Singh answered that Q4 is the earliest possible, but full acceleration will likely take more time due to current rollout delays.
• Charles Nabhan (Stephens): Sought clarity on gross margin sustainability and the impact of investments in TASK. Menar noted that the current product mix and ongoing investment will keep margins in the mid-60% range for the short term.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be watching (1) the pace at which PAR converts its contracted backlog, especially with major QSR brands like Burger King and Popeyes, (2) progress on winning and implementing large-scale global Tier 1 POS deals, and (3) the impact of multi-product bundling on average revenue per customer and cross-sell rates. Volatility in hardware sales due to tariff policy changes and the ability to scale platform investments efficiently will also be key indicators of future performance.

PAR Technology currently trades at $51.81, down from $57.95 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).

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