PAR (PAR) investor relations material

Executive summary

• Q2 2026 revenue rose 19% year-over-year to $133.4 million, with ARR up 17% to $338 million and organic ARR up 12%.

• Adjusted EBITDA reached $14.3 million, up $8.7 million year-over-year and $5.3 million sequentially; net loss narrowed to $16.9 million from $21 million.

• Multi-product adoption is nearly universal among new customers, driving higher ARPU and longer contract terms.

• AI and platform strategy are central, with rapid adoption of PAR Intelligence and significant investments in product innovation and expansion.

• Divestiture of the government segment and focus on food service technology and unified platform strategy.

Financial highlights

• Total Q2 2026 revenue was $133.4 million, up 19% year-over-year; subscription service revenue grew 16% to $83.4 million, hardware revenue was $35.1 million (up 31%), and professional service revenue was $14.9 million (up 10%).

• ARR exited the quarter at $338 million, up 17% year-over-year and 12% organically.

• Adjusted EBITDA margin improved to 10.7% in Q2 2026, a 580 basis point increase year-over-year.

• Net loss per share improved to $(0.41) from $(0.52) year-over-year; non-GAAP net income was $7.5 million ($0.18/share).

• Gross margin was $57 million (up 11%); subscription service gross margin was 55.2% GAAP and 65.1% non-GAAP.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $516–$523 million; adjusted EBITDA guidance raised to $50–$53 million.

• Q3 2026 revenue expected at $128–$132 million; adjusted EBITDA at $13.5–$14.5 million.

• Second half ARR growth expected to outpace first half, driven by large backlogs and new wins.

• Continued investment in AI-enabled features and platform expansion.

• Management anticipates ongoing supply chain challenges, commodity cost volatility, and economic uncertainty.