PAR (PAR) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 19% year-over-year to $124 million, with significant profitability improvement and adjusted EBITDA doubling to $8.9 million, driven by disciplined execution, cost efficiency, and expansion of AI-driven solutions.

• Strategic focus on scaling an AI-first platform, eliminating structural cost inefficiency, and expanding recurring revenue streams, with multi-product deals accelerating and nearly 90% of new operator deals being multi-product.

• AI capabilities, especially PAR Intelligence, are being rapidly adopted and are expected to drive incremental revenue and operational efficiency, with the launch of PAR Intelligence embedding AI across business units.

• Completed the acquisition of Bridg, adding $14.4 million ARR and enhancing AI-driven identity resolution and shopper intelligence capabilities.

• Net loss from continuing operations improved to $16.2 million ($0.39/share), down from $24.5 million ($0.61/share) in Q1 2025.

Financial highlights

• Total Q1 revenue was $124 million, up 19% year-over-year, with subscription services and hardware as primary growth drivers.

• Adjusted EBITDA nearly doubled year-over-year to $8.9 million, marking the fifth consecutive quarter of sequential growth.

• ARR reached $330.1 million, up 16% year-over-year, with organic ARR growth of 11%.

• Subscription service revenue was $79 million (63% of total), up 15% year-over-year; hardware revenue grew 34% to $29 million; professional services revenue rose 19% to $16 million.

• Non-GAAP net income was $3.9 million ($0.10/share), a $4.2 million improvement year-over-year.

Outlook and guidance

• Q2 2026 revenue expected between $122.5 million and $127.5 million; adjusted EBITDA between $9.5 million and $11.5 million.

• Full-year 2026 revenue guidance is $500 million–$515 million; adjusted EBITDA $44 million–$47 million.

• Operating leverage and profitability expected to improve further as cost actions and AI-enabled efficiencies take hold.

• ARR growth target remains in the mid-teens, excluding potential large tier one deals.

• Management anticipates continued supply chain challenges, commodity cost volatility, and economic uncertainty due to evolving global trade policies and tariffs.