PAR (PAR) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $120.1 million, up 14.4% year-over-year, driven by strong subscription services and hardware sales.

• Full-year 2025 revenue was $455.5 million, up 30.2%, with 21% organic growth and subscription services up 40%.

• ARR reached $315.4 million in Q4 2025, up 16% year-over-year and 15% organically.

• Adjusted EBITDA improved to $7.0 million in Q4 2025 and $23.0 million for the year, maintaining profitability.

• Aggressive investment in AI and multi-product platform strategy, including the launch of Coach AI, is fueling growth and customer expansion.

Financial highlights

• Q4 2025 adjusted EBITDA was $7.0 million, up $1.3 million year-over-year.

• Q4 2025 net loss from continuing operations was $20.9 million ($0.51/share), improved from $25.3 million loss ($0.68/share) last year.

• Subscription services revenue grew 18% year-over-year to $76.1 million, now 63% of total revenue.

• Hardware revenue was $28 million, up 7% year-over-year; professional services revenue was $16 million, flat year-over-year.

• Non-GAAP diluted net income per share was $0.06 in Q4 2025 and $0.15 for the full year.

Outlook and guidance

• Management expects mid-teens ARR growth in 2026, with stronger performance in the second half of the year.

• Margin profile expected to improve as legacy low-margin customers are managed out in Q1.

• Operational efficiency to increase, targeting $15 million annualized OpEx reduction via AI-driven automation by end of Q1.

• Continued investment in AI platform, product innovation, and new product commercialization anticipated.

• Strategic focus on becoming an AI platform partner for customers navigating an AI-first world.