Executive Summary

Q1 2025 revenue was $103.9M, up 48% y/y, with subscription services up 78% y/y (20% organic); non-GAAP diluted EPS was -$0.01 and Adjusted EBITDA was $4.5M, the third consecutive quarter of positive Adjusted EBITDA .
Versus S&P Global consensus, revenue modestly missed ($103.9M vs $105.2M cons.) while non-GAAP EPS beat (-$0.01 vs -$0.04 cons.); management cited ~$1M FX headwind and the deliberate BK rollout sequencing as near-term drags, offset by broad-based momentum and multiproduct wins * .
KPIs remained strong: Total ARR reached $282.1M (+52% y/y; +18% organic), non-GAAP subscription service GM% expanded to 69.1% (+340 bps y/y), and consolidated GAAP gross margin improved to 46.5% .
2025 outlook: management maintained its “20%+” organic growth target and guided to a 2H ramp in revenue and significant EBITDA expansion driven by Burger King (PAR POS + PAR OPS) and multiproduct attachments .

What Went Well and What Went Wrong

What Went Well
- Strong subscription momentum and margin expansion: subscription revenue +78% y/y (20% organic) and non-GAAP subscription service GM% at 69.1% (+340 bps y/y) .
- Multiproduct flywheel accelerating: 57% of new Engagement deals were multiproduct vs 16% in Q1’24; Operator Solutions saw 100% multiproduct deals for the last two quarters, underpinning LTV and operating leverage .
- Platform wins and pipeline depth: BK rollout restarted with an expected 2H peak; 5 new PAR POS customers signed; Popeyes selected PAR OPS (preferred BOH vendor for 3,500+ stores); pipeline replenished with 4 of 7 Tier-1 wins secured .
What Went Wrong
- FX headwind and BK sequencing impacted near-term revenue: ~$1M revenue and ~$0.7M EBITDA headwind from FX; BK rollout pause in Q1 to recalibrate dual PAR POS + Data Central sequencing before restarting .
- GAAP loss widened y/y due to debt extinguishment and higher OpEx (inorganic): GAAP net loss from continuing ops of $(24.5)M vs $(20.4)M y/y, including a $5.8M loss on debt extinguishment; G&A and R&D up primarily from acquisitions .
- Payments still dilutive to consolidated margin (though improving) and <10% of revenue, limiting near‑term mix uplift from that line despite healthy growth and attach .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$96.8	$105.0	$103.9
GAAP Diluted EPS - Continuing Ops ($)	$(0.58)	$(0.68)	$(0.61)
Non-GAAP Diluted EPS ($)	$(0.09)	$0.00	$(0.01)
Adjusted EBITDA ($USD Millions)	$2.4	$5.8	$4.5
Gross Margin % (Consolidated, GAAP)	44.5%	42.9%	46.5%
Subscription Service Gross Margin % (Non-GAAP)	66.8%	64.7%	69.1%

Segment revenue breakdown

Revenue by Segment ($USD Millions)	Q3 2024	Q4 2024	Q1 2025
Subscription Service	$59.9	$64.0	$68.4
Hardware	$22.7	$26.0	$21.8
Professional Service	$14.2	$15.0	$13.6

KPIs

KPI	Q3 2024	Q4 2024	Q1 2025
Total ARR ($USD Millions)	$248.1	$276.0	$282.1
Operator Cloud ARR ($USD Millions)	$93.4	~$117.0	$117.2
Engagement Cloud ARR ($USD Millions)	$155.0	~$159.0	$164.9

Q1 2025 KPI detail

KPI (Q1 2025)	Value
Non-GAAP Subscription Service GM%	69.1%
Active Sites – Engagement Cloud	120.6k
Active Sites – Operator Cloud	59.0k

Notes: PAR disclosed additional y/y bridges for Q1 2025 including subscription GM% 57.8% GAAP (+620 bps y/y) and non-GAAP 69.1% (+340 bps y/y), and adjusted EBITDA improvement of $14.7M y/y .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Organic growth target	FY 2025	“20%+” organic growth (reiterated at FY call)	Targeting “20%+” organic growth	Maintained
Revenue/EBITDA cadence	2H 2025	Expected 2H acceleration from BK/Payments/C-store; margin expansion in 2H	Q2 similar to Q1; “nice pickup” in Q3–Q4 and “significant EBITDA expansion”	Maintained
Operating cash flow	Remainder of 2025	Exited Q4 with +$3M OCF; improving trend	Expect OCF to turn meaningfully positive for remainder of year	Strengthened qualitative
Formal numeric guidance (revenue, margins, EPS)	FY 2025	None provided	None provided; qualitative only	Unchanged

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3’24, Q4’24)	Current Period (Q1’25)	Trend
Multiproduct “Better Together”	Standalone best-in-class and “better together” wins; all Q4 POS deals multiproduct	57% of new Engagement deals multiproduct; 100% multiproduct in Operator last two quarters	Accelerating
Burger King rollout	Combined PAR POS + PAR OPS expected; 2H acceleration in 2025	Q1 pause to integrate dual rollout; rollout restarted; peak install velocity expected Q3–Q4	Near-term delay, stronger 2H
Back-office (PAR OPS: Data Central + Delaget)	Integration and cross-sell tailwinds; Data Central ARR growth	Preferred BOH vendor for Popeyes’ 3,500+ stores; largest PAR OPS pipeline to date	Expanding
Payments	Scaling with high transaction volumes; new Tier-1 attach	Added 5 new concepts; still <10% of revenue and margin dilutive but improving	Growing, mix tailwind later
Engagement Cloud & Ordering 2.0	Wendy’s go-live; PAR Ordering scaling	Ordering 2.0 soft-launched; best sales quarter in 2+ years; AI-driven upsell via Punchh	Improving
Tariffs/supply chain	Hardware improving; PAR Clear drive-thru launched	< $1M/quarter China exposure; diversified SE Asia sourcing; confident in mitigation	Managed risk
FX exposure	TASK adds AUD/NZD exposure	FX reduced reported ARR in Q3/Q4; ~20% ARR ex-U.S.; ~$1M revenue, ~$0.7M EBITDA headwind in Q1	Headwind (manageable)
International (TASK)	Platform special; APAC focus; programmatic scale planned	Continued traction; constant-currency ARR +$10M seq. Q4→Q1	Building

Management Commentary

“We reported $104 million in revenues in Q1, an increase of more than 48% year-over-year… Adjusted EBITDA came in at $4.5 million… a nearly $15 million improvement from Q1 last year.” — Savneet Singh, CEO .
“In Q1, we paused the PAR POS implementation of Burger King… rollout has since restarted… install velocity expected to peak in Q3 and Q4 for both product offerings.” — Savneet Singh .
“57% of new signed engagement deals were multiproduct… a major leap from just 16% in Q1 2024.” — Savneet Singh .
“Payments is still less than 10% of our revenues… still dilutive to gross margin, but going in the right direction.” — Bryan Menar, CFO .
“On average, we import less than $1 million of peripheral devices per quarter from China… we purposely reduced our reliance… distributed our sourcing to other countries in Southeast Asia.” — Savneet Singh .

Q&A Highlights

Cadence and 2H ramp: Q2 likely similar to Q1 with a “nice pickup” in Q3–Q4 as BK and multiproduct wins go live; targeting “20%+” organic growth for FY25 .
FX and constant currency: ARR adjustments in Q3/Q4 due to AUD/NZD; ~20% of ARR is outside the U.S.; Q1 FX headwind ~~$1M revenue/~~$0.7M EBITDA .
Cross-sell opportunity: Fully-baked ARPU could be “at least 4x” if every customer adopted all products; integration-led selling is the key driver .
Tariffs/hardware exposure: Minimal direct China exposure, pricing flexibility in contracts, and proactive PO pull-ins to mitigate risk .
Pipeline and Tier-1 wins: 4 of 7 Tier-1 RFPs won (3 not yet rolled out), with pipeline “replenished” on a weighted basis .

Estimates Context

Q1 2025 actuals vs S&P Global consensus

Metric	Q1 2025 Consensus*	Q1 2025 Actual	Beat/Miss
Revenue ($USD Millions)	$105.2*	$103.9	Miss (~$1.3)
Primary EPS (adjusted) ($)	$(0.04)*	$(0.01)	Beat (+$0.03)

Drivers: Modest revenue miss largely reflects FX (~$1M) and BK sequencing; EPS beat driven by gross margin expansion (subscription GM% +620 bps GAAP; +340 bps non-GAAP y/y) and operating leverage, partly offset by a $5.8M loss on debt extinguishment .
*Values retrieved from S&P Global.

Key Takeaways for Investors

Mix and margin: Subscription and multiproduct attach remain the growth/margin engine; non-GAAP subscription GM% at 69.1% and improving consolidated GM% are constructive for sustained gross profit scaling .
Setup for 2H: BK dual-product rollout, Ordering 2.0 traction, and payments attach underpin revenue acceleration and “significant” EBITDA expansion in Q3–Q4 .
Cross-sell optionality: Integration-led selling (POS + back-office + engagement + payments) materially increases LTV; Tier-1 pipeline/wins provide multi-year ARR visibility .
Risks manageable: FX (~20% ex-U.S. ARR) and tariff exposure (minimal China reliance) are headwinds but appear well mitigated operationally .
Execution watch items: BK rollout cadence, payments margin trajectory, and continued GAAP-to-non-GAAP gap (amortization, stock comp, debt extinguishment) .
Near-term trading implication: Slight top-line miss vs EPS beat with reiterated 20%+ growth and a 2H ramp narrative—look for catalysts from BK rollout progress, additional Tier-1 disclosures, and accelerating multiproduct deals .
Product innovation catalysts: PAR POS Spring Release and upcoming PAR Engagement roadmap (AI-driven upsell, app-less loyalty) can support attach and ARPU over time .

Additional Q1 2025 Materials (Press Releases)

PAR POS Spring Release with enhancements to guest convenience, staff operations, and platform extensibility .

Sources:

Q1 2025 8-K/Press Release, financial statements and non-GAAP reconciliations .
Q1 2025 Earnings Call Transcript (prepared remarks and Q&A) .
Prior quarters for trend: Q4 2024 and Q3 2024 earnings call transcripts .
Other press releases: PAR POS Spring Release .

PAR TECHNOLOGY CORP (PAR)·Q1 2025 Earnings Summary