PAR Revenue Rises 15% to $137.1 Million in Third Quarter of 2026
Key Facts
PAR Technology reported results on November 5 for the third quarter ended September 30, 2026, posting revenue of $137.1 million, up 15% from $119.2 million in the year-earlier period. Revenue topped analysts’ estimate of $128.35 million, while adjusted diluted EPS was $0.24, above the estimate of $0.17, according to an earnings comparison published by StreetInsider. The company said annual recurring revenue rose 18.1% year over year to $354.5 million at quarter-end. The results reflect revenue growth and improvement in adjusted profitability metrics, while the company remained unprofitable on a GAAP basis. PAR also raised its annual outlook range, signaling higher estimates for performance through the rest of 2026.
Net loss from continuing operations was $9.0 million in the third quarter, compared with a loss of $18.2 million in the same period of 2025. Adjusted EBITDA, meanwhile, rose to $17.1 million from $5.8 million a year earlier. GAAP diluted loss per share narrowed to $0.22 from $0.45, while non-GAAP diluted EPS increased to $0.24 from $0.05. The divergence between the accounting loss and adjusted profitability highlights the different measures the company presents to investors. Sequentially, adjusted EBITDA increased by $2.9 million from the second quarter, a sequential gain of 20%, and its margin was 12.5% in the third quarter.
Revenue growth came across several lines: subscription services revenue rose to $85.875 million from $74.763 million in the year-earlier quarter. Hardware revenue also increased to $34.372 million from $29.895 million, while professional services revenue was $16.861 million, compared with $14.525 million. Active locations on subscription services totaled 174.4 thousand as of September 30, 2026. GAAP gross margin for subscription services increased to 55.8% from 55.3% a year earlier, while the non-GAAP margin slipped to 66.0% from 66.2%. Subscription performance thus combined revenue growth and improvement in its accounting margin with a slight decline in its adjusted margin.
Chief Executive Savneet Singh said the quarter showed continued acceleration in growth and profitability, attributing the momentum to enterprise deployments, increased adoption of several products and a healthy pipeline. He added that PAR Intelligence is on track to exceed its initial target of deploying the service at 50 thousand locations by year-end. On liquidity, free cash flow was $17.7 million in the third quarter, and the company said this helped turn year-to-date free cash flow positive. The cash flow adds a cash measure to the improvement in adjusted earnings, while the CEO links growth to broader solution deployments and product adoption. Active-location figures and the PAR Intelligence target show the scale of the company’s operational presence that it aims to expand.
The company raised its fiscal 2026 revenue outlook to a range of $532.5 million to $536.5 million, from its previous range of $516.0 million to $523.0 million. It also raised its adjusted EBITDA forecast to between $57.9 million and $59.4 million, compared with the prior range of $50.0 million to $53.0 million. For the fourth quarter ending December 31, 2026, PAR expects revenue of $138 million to $142 million and adjusted EBITDA of $17.5 million to $19 million. The company’s filing scheduled the earnings call for November 5 at 4:30 p.m. Eastern time, with a webcast replay to be available on its investor relations website afterward. The closing price of $19 on November 4, according to EL7 data, preceded the earnings release the following day.