Executive Summary

Q4 revenue grew 50% year-over-year to $105.0M with subscription revenue up 95% (25% organic) and total ARR doubled to $276.0M (21% organic), while Adjusted EBITDA turned positive for a second straight quarter to $5.8M .
Non-GAAP diluted EPS improved to ~$0.00 from $(0.43) in Q4’23; subscription service GAAP gross margin rose 510 bps YoY to 53.2%, with non-GAAP subscription service gross margin at 64.7% (down 60 bps YoY on mix from 2024 acquisitions) .
Management signaled 2025 will be back-half weighted on revenue and margin, driven by an expanded Burger King rollout (POS + PAR OPS; ~1,500 sites in backlog), a large payments win (~1,000 locations), and a major C‑store deployment; they are “confident” in 20%+ growth for the year with sequential EBITDA expansion in 2H .
Strategic catalysts: acquisition of Delaget (~$19M recurring revenue, mid-30% historical growth) to accelerate data platform and cross-sell (PAR OPS), plus PAR Clear drive‑thru platform enabling voice AI integrations; hardware revenue inflected +7% YoY in Q4 .

What Went Well and What Went Wrong

What Went Well
- Second consecutive quarter of positive Adjusted EBITDA ($5.8M), up $13.1M YoY and $3.4M QoQ; non-GAAP consolidated gross margin improved to 50.3% for FY’24; Q4 operating cash flow positive $3M .
- Cross-sell momentum: all 8 new Q4 POS logos bought multiple PAR products; expanded BK agreement to add PAR OPS (Data Central), with combined rollout expected to accelerate from Q2’25; ~1,500 BK sites in backlog .
- ARR scale and mix: total ARR reached $276.0M (+102% YoY), with Engagement Cloud ARR $159.1M and Operator Cloud ARR $116.8M; subscription revenue now 61% of total .
What Went Wrong
- GAAP net loss from continuing operations widened YoY to $(25.3)M on higher G&A (M&A fees, stock comp) and interest/LT debt actions; hardware gross margin was 26% vs 29% a year ago (prior year benefited from one-time inventory adjustments) .
- Non-GAAP subscription service gross margin slipped modestly to 64.7% (–60 bps YoY) due to mix from 2024 acquisitions; management framed Q4 as a baseline reset with improvement expected going forward .
- Near-term cadence: Q1’25 will be slower for pure POS as BK sequencing adds a second module (PAR OPS), with investments to support combined rollouts before acceleration in 2H’25 .

Financial Results

Headline metrics

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($M)	$78.2	$96.8	$105.0
GAAP Diluted EPS – Continuing Ops	$(0.69)	$(0.58)	$(0.68)
Adjusted EBITDA ($M)	$(4.35)	$2.42	$5.78
Gross Margin ($M)	$32.03	$43.03	$45.01
Subscr. Service GM % (GAAP)	53.1%	55.3%	53.2%
Subscr. Service GM % (Non-GAAP)	66.4%	66.8%	64.7%

Revenue mix by offering

Revenue ($M)	Q2 2024	Q3 2024	Q4 2024
Subscription Service	$44.87	$59.91	$64.26
Hardware	$20.12	$22.65	$26.05
Professional Service	$13.16	$14.20	$14.70
Total Revenue	$78.15	$96.75	$105.01

Key KPIs

KPI	Q2 2024	Q3 2024	Q4 2024
Total ARR ($M)	$192.2	$248.1	$276.0
Engagement Cloud ARR ($M)	$107.9	$154.7	$159.1
Operator Cloud ARR ($M)	$84.2	$93.4	$116.8
Engagement Cloud Active Sites (k)	94.6	117.8	119.7
Operator Cloud Active Sites (k)	27.7	32.7	54.8

Balance sheet and cash flow (select year-end figures)

Cash & equivalents $108.1M; LT debt $368.4M at 12/31/24; subsequent to year-end, issued $115M of converts and repaid credit facility, extending maturities and lowering cash interest .
Q4 operating cash flow positive $3M; FY’24 cash used in operating activities from continuing operations improved to $(21)M vs $(32)M FY’23 .

Non-GAAP context and reconciliation

Non-GAAP diluted EPS improved to ~$0.00 from $(0.43) in Q4’23, reflecting add-backs including acquired intangibles amortization (Q4: $0.24), stock-based compensation ($0.21), loss on extinguishment of debt ($0.18), and others per reconciliation .
Adjusted EBITDA bridge from GAAP loss includes D&A ($11.2M), stock-based comp ($7.9M), transaction costs ($2.35M), extinguishment of debt ($6.56M), among others .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Company revenue growth cadence	FY 2025	None provided	Back-half weighted acceleration tied to BK combined rollout, large payments win, and C‑store deployment; slower Q1 due to rollout sequencing	New qualitative commentary
Total growth	FY 2025	None provided	“Confident” to grow 20%+ for the year; quarterly growth not linear	New qualitative commentary
Adjusted EBITDA	FY 2025	None provided	Expect “significant” EBITDA expansion in 2H as rollouts accelerate	New qualitative commentary
Non-GAAP Subscr. Service GM %	Near-to-medium term	None provided	Expect ongoing 50–150 bps QoQ improvement from the Q4 baseline mix reset	New qualitative commentary
BK rollout	2025	POS-only plan	Combined POS + PAR OPS; Q1 slower to enable combined rollout; acceleration from Q2; ~1,500 sites in backlog	Expanded scope
OpEx ratio	Ongoing	N/A	Non-GAAP OpEx 45% of revenue in Q4 (–900 bps YoY); focus on continued efficiency	Operational update

Note: No formal numeric guidance on revenue, margins, OpEx dollars, OI&E or tax rate was issued in the press release or on the call .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2’24, Q3’24)	Current Period (Q4’24)	Trend
AI/Technology initiatives (Drive‑thru, data platform)	PAR planned EBITDA inflection; platform strategy with acquisitions (Stuzo, TASK) . PAR later launched PAR Clear (drive‑thru) in Nov’24 enabling future AI integrations .	PAR Clear positioned to enable voice AI via cloud + APIs; monetization via platform fees; unique first‑party data moat across POS, ordering, loyalty, payments	Increasing productization and monetization runway
Cross‑sell / Better Together	Strategy emphasized; first positive Adjusted EBITDA in Q3 .	8 new POS logos all multiproduct; BK expansion to PAR OPS; Delaget integration to accelerate PAR OPS cross‑sell	Strengthening attachment rates
Macro/restaurant trends	N/A in Q2 PR; Q3 focused on execution .	QSR/fast casual comps low-single-digit positive in PAR base; FSR softness boosts loyalty demand; small chains under pressure	Mixed macro; large brands investing in digital
International (TASK)	TASK acquisition announced Q2; scaling plans .	Focus on APAC, operationalizing deployments; onboarding US brands expanding in region	Building regional scale
R&D/OpEx discipline	Tracking to EBITDA positive; platform integration .	Non-GAAP OpEx 45% of revenue (–900 bps YoY); S&M and R&D at long-term target ranges	Operating leverage improving
Payments	N/A in Q2 PR.	Large payments cross-sell (~1,000 locations) to roll in coming quarters; broader pipeline	Expanding footprint
Regulatory/legal	N/A	No material updates noted	Stable

Management Commentary

“We delivered a strong fourth quarter, with 21% organic ARR growth year-over-year and our second consecutive quarter of positive Adjusted EBITDA, proving out our better together thesis.” — Savneet Singh, CEO .
“We expect significant and accelerated implementations from Q2 onwards [at Burger King]… we currently have approximately 1,500 BK sites in backlog.” — Savneet Singh .
“Total revenues were $105 million for Q4 2024… Subscription Services revenue growth of 95%, inclusive of 25% organic growth… Non‑GAAP subscription services margin was 64.7% vs 65.3% in Q4’23, with the modest tick down driven by mix post 2024 acquisitions.” — Bryan Menar, CFO .
“For 2025, we feel confident in committing to continue to grow our business at 20‑plus percent annual rates… growth will never be linear.” — Savneet Singh .
“Subscr. Service gross margin [non-GAAP]… may have reset a baseline [from acquisitions] and we expect 50–150 bps QoQ improvement near‑ to medium‑term.” — Bryan Menar .

Q&A Highlights

BK rollout & ARR uplift: Combined POS + PAR OPS rollout will push some POS sites from Q1 but “dramatically” increases LTV; adds meaningfully above prior low‑$20M POS-only ARR estimate (not yet disclosed) .
2025 cadence: Expect revenue acceleration and “significant” EBITDA expansion in 2H’25, driven by BK, a large payments rollout, and a C‑store deal; Q1 the slowest quarter due to BK sequencing .
Delaget profile: ~$19M recurring revenue at close; historically mid‑30% growth; marginally profitable exiting 2024; expected to be one of the fastest‑growing products in 2025 with meaningful EBITDA .
Margins: Non‑GAAP subscription service gross margin expected to improve 50–150 bps per quarter from Q4 baseline; mix headwind from acquisitions in Q4 .
Hardware/AI: Hardware revenue inflected +7% YoY; PAR Clear enables voice AI via API integrations with platform monetization for PAR .
Share count: Diluted weighted average shares “just north of 40M” post‑Delaget .

Estimates Context

S&P Global consensus estimates were unavailable for this request; therefore, we cannot present beat/miss vs Wall Street for Q4 2024, Q3 2024, or Q2 2024 at this time. Values retrieved from S&P Global.*

Key Takeaways for Investors

Back‑half weighted 2025 setup: Expect acceleration from Q2 as BK combined rollout, a large payments win, and a major C‑store deployment hit—clear near‑term catalysts for revenue and EBITDA expansion .
Cross‑sell flywheel working: All Q4 POS wins were multiproduct; Delaget materially enhances PAR OPS and data platform cross‑sell, enlarging TAM and shortening sales cycles .
Quality of revenue improving: Subscription now 61% of revenue; ARR at $276M with 21% organic growth; non‑GAAP margins poised to improve from Q4 baseline as mix normalizes .
Operating leverage emerging: Two straight positive Adjusted EBITDA quarters; non‑GAAP OpEx at 45% of revenue (–900 bps YoY) supports multi‑year margin expansion potential .
Product-led edge in AI era: PAR Clear + first‑party data spanning POS, ordering, loyalty, and payments positions PAR to monetize AI-driven experiences without ceding control to third parties .
Balance sheet de‑risking: Post‑year-end convertible issuance repaid the credit facility, pushing out maturities and reducing cash interest burden .
Watch list: Execution on BK rollout velocity, payments monetization, non‑GAAP margin recapture trajectory, and TASK/APAC scaling are the key swing factors for 2025 .

Citations:
Press release and 8-K tables and reconciliations:
Earnings call transcript:
Prior quarters PRs:
PAR Clear AI/drive-thru PR:

PAR TECHNOLOGY CORP (PAR)·Q4 2024 Earnings Summary