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CFO Bryan Menar explained the 66-67% margin baseline for the second half is driven by product mix, which is not expected to change significantly in the near term, though the long-term goal remains closer to 70%. CEO Savneet Singh described PAR's 'all in' approach to AI, highlighting current efficiency gains in software development and support. He emphasized that PAR's strategy is to build AI natively into its products (like the new CoachAI), leveraging proprietary data and workflow control as a key competitive advantage.

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CFO Bryan Menar stated that the payments business is still dilutive to gross margin but is improving and currently represents less than 10% of total revenue. Regarding tariffs, Menar explained that PAR has mitigated risk by diversifying its supply chain away from China post-COVID and has flexibility in its contracts. He noted they have not seen a negative impact and are working closely with customers on pricing.

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CEO and President Savneet Singh said the initial international focus is on operationalizing and scaling the business in the APAC region, where TASK is strong. CFO Bryan Menar noted that while Hardware margins have improved to the mid-20s, only modest further increases are expected. He also highlighted significant margin improvement in related Professional Services.

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CEO Savneet Singh explained that Punchh and Data Central are accretive to margins, while Brink is in-line and PAR Ordering and Payments are currently below. The margin is a balance between fast-growing, lower-margin products and efficiency gains in larger ones. Regarding Stuzo, he said it's too early for ARPU uplift, which is expected to come from converting Punchh C-store customers to Stuzo's higher-priced platform.

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CEO Thomas Warsop attributed the backlog growth to improved sales and account management execution rather than a fundamental shift in customer investment. On capital allocation, Warsop reiterated the strategy: prioritize internal growth investments, seek M&A to accelerate the Kinetic platform or for geographic expansion, and return excess capital to shareholders. He noted the aggressive Q2 buybacks were due to the stock's attractive price.

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CFO John Pence attributed the margin guidance adjustment primarily to the near-term margin profile of Latham, noting that cost synergies will take about 18 months to realize. CEO Pat Goepel added that while the company is focused on increasing attach rates now, he expects ARPU to become a key performance indicator in 2026. He also noted a slight trend toward selling to larger employers than the historical average.

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CFO John Pence highlighted the strategy of filling product suite gaps, citing the recent broker of record and applicant tracking acquisitions. CEO Patrick Goepel added that their approach is "build, partner, or buy" and emphasized internal technology investments, like a new client life cycle management tool, which are designed to drive operational efficiency, scale, and enable event-driven marketing.

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CFO John Pence indicated that margin expansion will be back-end loaded in Q3 and Q4, not linear, as revenue grows against a relatively flat cost base. He also noted reseller M&A valuations have been consistent at ~2.5x revenue. CEO Pat Goepel added that the strategic focus is on achieving scale and that future product expansion would likely be in the benefits space, following a 'partner then buy' approach.

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CFO John Pence and CEO Patrick Goepel confirmed that 2.6x repetitive revenue is a good proxy for the overall M&A mix, noting that the HireClick deal was at a slightly higher multiple while a brokerage acquisition was lower. President Eyal Goldstein described the competitive landscape as stable and consistent, with Asure primarily competing against ADP and Paychex in its respective markets.

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Chairman, CEO & President Michael Brown explained that the complexity and moat stem from handling a 'superset of features' and fringe cases, such as multi-year interest recalculations for returns, which only three platforms can manage at scale. Regarding travel, Mr. Brown noted that U.S. travel to Europe is up 10% year-over-year. He reiterated that Q2 EFT performance was impacted by a tough comparison to an extraordinary prior year quarter and expects a return to strong growth in Q3.

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CEO Alex Shootman stated that while data aggregation is a critical capability, Alkami is in a 'wait and see' mode regarding potential industry-wide fees for data access and will adjust its strategy as the situation develops. CFO Bryan Hill explained that it is difficult to parse out a single product's contribution to the backlog due to bundled sales, but confirmed the overall backlog is growing.

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CEO Alex Shootman affirmed that the company is sticking to its original three-pronged sales thesis for MANTL, utilizing MANTL's sales team, Alkami's client sales team, and Alkami's new logo team. CFO Bryan Hill clarified that of the 31% year-over-year RPO growth, approximately 20% was organic, with the MANTL acquisition contributing the remaining 11 percentage points.

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CFO Bryan Hill explained that the revenue model has multiple levers, with strong ARPU expansion from cross-sells currently compensating for a moderation in user growth. He noted new clients in the backlog have a significantly higher RPU. Regarding margins, Hill confirmed the 65% gross margin target for 2026 remains, clarifying that the 1% investment for offshoring will impact R&D, not gross margin, and acknowledged the company could potentially reach the target ahead of schedule.

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CFO Greg Orenstein attributed a significant portion of the international growth to the Full Circle acquisition but also highlighted optimism for organic growth in Japan and Europe. CEO Sean Desmond provided a comprehensive update, noting DocFox is ready for a sales push, Full Circle is driving deals and enabling expansion, Allegro is key to unlocking the credit union market, and Sandbox Banking is core to the AI and data strategy.

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Chief Financial Officer Greg Orenstein declined to quantify the impact of a single customer deal but noted its early close was a positive execution milestone. Chief Executive Officer Pierre Naude confirmed that preparing for M&A is a significant demand driver, as banks with a modern, standardized platform like nCino are better positioned to acquire and integrate other institutions efficiently.

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CEO Pierre Naude noted that while H1 was 80% cross-sell, H2 is expected to be weighted towards new logos. He projects a future mix of roughly 60% cross-sell to 40% new logos. Internationally, he identified Canada, UK/Ireland, Benelux, Nordics, Spain, ANZ, South Africa, and Japan as focus markets, with new products for onboarding and mortgage being developed in the U.K. and Australia.

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CFO Cosmin Pitigoi explained that H2 margin expansion is more moderate due to the timing of reinvesting savings from the restructuring. Regarding the travel cohort chart, he clarified that the year 1 to year 2 dip was a one-off anomaly caused by the business launching during the COVID-19 pandemic, and he affirmed the underlying profitability of the vertical is strong.

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CEO James Kelly clarified the contract is an expansion of a long-standing relationship with revenue ramping in Q1. Executive Brian Webb-Walsh stated that recurring revenue is expected to grow 4-5%, with pressure from nonrecurring hardware and services. He also detailed $100 million in 2025 cost actions, which will ramp through the year and improve margins.

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CEO David Wilkinson guided for Q4 to have flattish retail software/services revenue and 1-2% growth in restaurant software/services, with total EBITDA at or above the midpoint of the range. On payments, CFO Brian Webb-Walsh described a dual strategy: a high-attach, all-in-one solution for SMBs and a value proposition for enterprise based on total cost of ownership and seamless integration, not just price.

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CFO Jonathan Price credited strong free cash flow conversion to improved profitability and working capital management, with no change to the company's CapEx-light model. He stated that organic investment is focused on fraud, Innovation Studio, and commercial solutions. While M&A is an option, the company remains prudent. Regarding professional services, Price said the guidance assumes no rebound in discretionary spending, and any future growth in this area would be selective.

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President Rick Stanford stated their M&A 'sweet spot' remains deals with $2 million to $5 million in EBITDA and that the competitive environment has not changed. CRO Paul Christians addressed spending, noting they have not seen a pullback from government clients. He explained their model, which can monetize software via user-based transaction fees, provides resilience against budget constraints and that the company has minimal exposure to federal grant funding like ARPA.

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