Executive Summary

Q2 2025 revenue grew 43.8% year-over-year to $0.112B, with subscription services up 60% and ARR reaching $286.7M (+49% Y/Y; +16% organic); non-GAAP diluted EPS was $0.03 and Adjusted EBITDA was $5.5M .
Revenue modestly beat Wall Street consensus; non-GAAP EPS was above S&P Global’s Primary EPS estimate; SPGI’s EBITDA framework shows a miss versus estimate, while company-reported Adjusted EBITDA was positive, highlighting methodology differences (see Estimates Context).
Management reset 2025 organic ARR growth expectations to “mid-teens” given slower POS/payments rollouts, down from prior “20%+” messaging; subscription service margin baseline guided to 66–67% for 2025 and operating cash flow expected to turn positive in H2 .
Strategic catalysts include record multi-product wins (70% of new Punchh deals were multi-product), BK rollout restart, an expanded RBI relationship (Popeyes PAR OPS), and launch of Coach AI; payment growth expected to reaccelerate in H2 as card-not-present deals go live .

What Went Well and What Went Wrong

What Went Well

Record multi-product momentum: “We signed a record amount of multi-product logos… and restarted our largest rollout,” with 10 new engagement deals and 70% multi-product attach; Ordering closed six new deals, all cross-sell into the base .
ARR and margins scaled: ARR hit $286.7M (+49% Y/Y, +16% organic), GAAP subscription service margin rose 220 bps Y/Y to 55.3%, and Adjusted EBITDA improved $9.9M Y/Y to $5.5M .
Strategic wins and pipeline: BK rollout resumed; RBI selected PAR OPS at Popeyes; late-stage Tier 1 POS pipeline includes three top-20 brands (two global top-10), and Operator/Engagement pipelines each exceed ~$50M ARR opportunity .

What Went Wrong

POS and payments slower than planned: POS deal rollouts and payments attach delayed, pressuring near-term ARR trajectory; management expects mid-teens organic ARR in 2025 vs prior 20%+ target .
Subscription margin down sequentially: Non-GAAP subscription margin fell to 66.4% vs 69.1% in Q1, driven by mix and Q1 one-time favorability; baseline guided to 66–67% for 2025 .
Task (international POS) backlog push-out: PAR paused most 2025 Task rollouts to prioritize product build for global Tier 1 pursuits, increasing near-term costs and reducing immediate revenue contribution .

Financial Results

Consolidated metrics vs prior periods and YoY

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Billions)	$0.105	$0.104	$0.112
GAAP Diluted EPS – Continuing Ops ($)	-0.68	-0.61	-0.52
Non-GAAP Diluted EPS ($)	-0.00	-0.01	0.03
Gross Margin ($USD Millions)	$45.0	$48.3	$51.0
Subscription Service Gross Margin % (GAAP)	53.2%	57.8%	55.3%
Subscription Service Gross Margin % (Non-GAAP)	64.7%	69.1%	66.4%
Adjusted EBITDA ($USD Millions)	$5.8	$4.5	$5.5

Segment revenue breakdown

Segment Revenue ($USD Millions)	Q2 2024	Q1 2025	Q2 2025
Subscription Service	$44.9	$68.4	$71.9
Hardware	$20.1	$21.8	$26.9
Professional Service	$13.2	$13.6	$13.6
Total Revenue	$78.2	$103.9	$112.4

KPIs and operating metrics

KPI	Q4 2024	Q1 2025	Q2 2025
Total ARR ($USD Millions)	$276.0	$282.1	$286.7
ARR – Engagement Cloud ($USD Millions)	$159.1	$164.9	$167.5
ARR – Operator Cloud ($USD Millions)	$116.8	$117.2	$119.2
Active Sites – Engagement Cloud (000s)	119.7	120.6	119.1
Active Sites – Operator Cloud (000s)	54.8	59.0	57.4
Adjusted EBITDA ($USD Millions)	$5.8	$4.5	$5.5
Non-GAAP Diluted EPS ($)	-0.00	-0.01	0.03

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Organic ARR Growth	FY 2025	“20%+ annual rates” (Q4 call/Q1 call)	“Mid-teens” for 2025 due to slower POS/payments rollouts	Lowered
Subscription Service Margin (Non-GAAP)	FY 2025	Expect gradual improvement (50–150 bps q/q from Q4 base)	Baseline 66–67% for 2025; Q2 at 66.4%	Clarified baseline
Operating Cash Flow	2H 2025	Expected to turn positive for remainder of year (Q1)	Continues to improve; back to positive remainder of year (Q2)	Maintained
Payments Growth Cadence	FY 2025	Growth and new concepts added (Q1)	Slower Q2; H2 return to growth with 500+ location CNP deals	Phased; H2 acceleration
Hardware Outlook	FY 2025	Improvement with PAR Wave/Clear; tariffs monitored	Q2 pull-forward ahead of tariff uncertainty; expect normalization Q3/Q4	Normalization expected

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
AI/technology initiatives	Drive-thru “PAR Clear” enabling voice AI; Ordering 2.0 upsells using Punchh data	Launching Coach AI; internal AI-first org plans; dev velocity doubled; support automation	Accelerating
Supply chain/tariffs	Reduced China exposure; redundancy; monitoring tariffs	Hardware purchases pulled ahead; uncertainty persists; mitigation and pricing/supply actions	Volatile but managed
Product performance (Ordering/Engagement)	Ordering 2.0 soft launch; multi-product wins growing	Six new Ordering deals; 70% of Punchh deals multi-product; $50M+ pipeline	Strengthening
Regional/international (TASK)	Focus APAC; pipeline building	Reposition to global Tier 1 deals; Wingstop Australia launch; backlog push to 2026	Investing; near-term trade-off
Payments	Growth; wallet adoption; <10% revenue	Q2 slower; shift to card-not-present; H2 growth expected	Near-term dip; H2 up
Macro/traffic	Mixed consumer trends; loyalty helps offset	QSR headwinds; engagement demand rising; “needed churn” in Q2	Brands leaning into digital
R&D execution	Operating leverage; margin improvement	Story points doubled vs last year; more AI features; internal/product velocity	Improving

Management Commentary

“Q2 was another strong quarter… We signed a record amount of multi-product logos in the quarter and restarted our largest rollout.” — Savneet Singh, CEO .
“Q2 adjusted EBITDA of $5.5M included $450k of accounting charges… Removing these… EBITDA would have been $6.0M.” — Bryan Menar, CFO .
“We expect this year to end in the mid-teens [organic ARR] driven by slower POS and payment rollouts… just one or two Tier 1 POS deals will provide accelerated growth for years.” — Savneet Singh .
“We have aggressively repositioned [TASK] to pursue global Tier 1 deals… anticipating rolling out accrued multi-million dollar backlog starting in Q1 2026.” — Savneet Singh .
“Coach AI… pulls real-time POS data, drive-thru timer information, and voice of the customer… to give in store operators actionable intelligence.” — Savneet Singh .

Q&A Highlights

ARR growth trajectory: Expect sequential acceleration through Q3/Q4; year likely mid-teens organic given H1 slowdowns; earlier BK restart supports H2 growth .
Multi-product ARPU uplift: Operator Cloud bundles can “double” revenue per store; engagement adds Ordering to loyalty for a “doubling” of ARPU; benefits not fully in P&L yet .
Tier 1 pipeline: Pursuing three top-20 brands (two top-10), all POS; two decisions expected in 2025 and one in 2026; pipeline excludes these to avoid distortion .
Margin cadence: Subscription non-GAAP baseline 66–67% for 2025; Q1 one-time tailwind and Q2 mix drove sequential decline; longer-term aim to approach 70% .
Task capacity: Dev/config capacity reprioritized to pursue global Tier 1s; backlog pushed to 2026; plan to scale team to do both in future .

Estimates Context

Q2 2025 versus Wall Street consensus (S&P Global): | Metric | Estimate | Actual | Surprise | |--------|----------|--------|----------| | Revenue ($USD Billions) | $0.111* | $0.112 | +$0.001 (approx. +1.2%)* | | Primary EPS (Non-GAAP) ($) | 0.00* | 0.03 | +$0.03* | | EBITDA ($USD Millions) | $5.455* | -$12.209* | -$17.7M* |

Values retrieved from S&P Global. Company-reported Adjusted EBITDA was $5.5M and improved $9.9M Y/Y, illustrating methodological differences between SPGI’s EBITDA construct and PAR’s Adjusted EBITDA reconciliation .

Forward estimates snapshot: | Metric | Q3 2025 Estimate | Q4 2025 Estimate | |--------|-------------------|------------------| | Revenue ($USD Billions) | $0.112* | $0.116* | | Primary EPS ($) | -0.02* | 0.03* | | EBITDA ($USD Millions) | $5.756* | $7.342* |

Values retrieved from S&P Global.

Key Takeaways for Investors

Multiproduct cross-sell is becoming structural, lifting ARPU and stickiness; expect accelerating revenue translation in H2 and into 2026 as deals go live .
Near-term growth moderated by rollout timing; management prudently reset 2025 organic ARR to mid-teens, with visibility to reacceleration via BK, Popeyes OPS, and late-stage Tier 1 POS .
Margins remain strong with a 66–67% non-GAAP subscription baseline; product mix and one-timers drove Q2 sequential pressure, but long-run target approaches ~70% as mix normalizes .
Payments is a reacceleration story in H2 (card-not-present attach to Ordering/Punchh); short-term softness is tactical as attach shifts, with larger TAM ahead .
Task’s global strategy sacrifices 2025 revenue for Tier 1 wins; backlog deferral to 2026 should set up outsized medium-term growth if pursuits land .
AI is moving from narrative to deployment (Coach AI); internal AI-first execution increases velocity and lowers support costs, while embedded AI features support upsell and personalization .
Trading lens: Modest revenue and EPS beats versus S&P Global for Q2; look for H2 inflections in ARR, payments, and POS rollouts to be near-term catalysts, while any Tier 1 signings could drive outsized re-rating.

Additional Context: Other Q2 2025 Company Materials

PAR Engagement launched: unifies loyalty, marketing/offers, ordering, and guest data with AI tools and cross-product integration, strengthening cross-sell motion .
Conference participation and customer wins in Q2 support momentum; hardware demand was partly pulled forward ahead of tariff uncertainty .

PAR TECHNOLOGY CORP (PAR)·Q2 2025 Earnings Summary