PAR Technology (NYSE:PAR) raised its 2026 revenue and adjusted earnings outlook after reporting record third-quarter revenue, adjusted EBITDA and free cash flow, as demand for its restaurant and retail technology platform helped lift sales 15% from a year earlier.
The company reported revenue of $137.1 million and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $17.1 million. Both exceeded the high end of PAR’s guidance, Chief Financial Officer Bryan Menar said on the earnings call. Free cash flow was $17.7 million, aided in part by customer prepayments.
PAR now expects full-year revenue of $532.5 million to $536.5 million, up from its previous forecast of $516 million to $523 million. It raised its adjusted EBITDA outlook to $57.9 million to $59.4 million from $50 million to $53 million.
For the fourth quarter, the company projected revenue of $138 million to $142 million and adjusted EBITDA of $17.5 million to $19 million. Menar said PAR expects subscription revenue growth to strengthen and hardware revenue to remain at historical levels, primarily because of product refreshes at existing large accounts.
Subscription Growth and Narrower Loss
Subscription service revenue rose 15% to $86 million in the third quarter, accounting for 63% of total revenue. Hardware revenue also grew 15%, to $34 million, while professional services revenue increased 16% to $17 million.
Annual recurring revenue, or ARR, reached $354.5 million at quarter-end, up 18% from a year earlier. Organic ARR growth was approximately 13%, and ARR increased by $16.5 million from the second quarter.
PAR narrowed its quarterly net loss to $9 million, or 22 cents per share, from $18 million, or 45 cents per share, a year earlier. Non-GAAP net income rose to $10.8 million, or 24 cents per diluted share, from $2 million, or 5 cents per share.
Non-GAAP subscription service margin was 66%, compared with 66.2% a year earlier, but improved 90 basis points sequentially. Menar attributed the sequential improvement in part to planned business-model changes for the Bridg product line. He said a margin range of roughly 66% to 68% was more likely in the foreseeable future, with a return toward 70% possible over time.
Cash and cash equivalents totaled $94 million at September 30, up $17 million from the prior quarter. Menar said third-quarter free cash flow benefited from seasonal working-capital support, including $10 million of customer prepayments. PAR expects modest positive free cash flow in the fourth quarter, with less working-capital support.
Rollouts and Multi-Product Deals
CEO Savneet Singh said more than 80% of new customer deals signed during the quarter involved multiple products. Poulet Rouge and Carvel selected PAR’s Punchh loyalty and engagement product, while Capriotti’s chose PAR Ordering for more than 175 stores. PAR also signed its largest ordering agreement to date with an unnamed national restaurant chain, which Singh said the company expects to discuss after its launch next year.
PAR had activated its point-of-sale system at more than 5,000 Burger King sites through September and remained ahead of plan, Singh said. He expects the rollout to be principally complete by year-end, with a more aggressive rollout of PAR OPS planned for next year. PAR also expects to begin implementing its POS and operations products at scale across Papa John’s more than 3,000 U.S. stores in the fourth quarter.
In retail, a major oil company signed a five-year partnership with PAR, while Kwik Fill selected PAR Retail and PAR Intelligence for more than 300 locations, Singh said. An additional national retailer selected Bridg after moving from a competing identity-resolution platform.
During the question-and-answer session, Menar said active sites were approximately flat sequentially because losses among a few smaller concepts using single, non-core products offset additions. He said newly added sites included multi-product customers and that average revenue per user increased significantly from the prior quarter.
AI Investment and Hardware Demand
PAR launched Guest360, a customer data platform integrated into Punchh, along with six new PAR Intelligence coaches and agents during the quarter. Singh said the company is focused on adoption and measurable customer outcomes in 2026, with the aim of making AI a more meaningful revenue contributor in 2027.
Although customers are already paying for some PAR Intelligence capabilities, Singh said it was premature to report a separate AI revenue metric. He told analysts that PAR’s goal is to put the product in more users’ hands, assess its value and then pursue broader monetization next year. The company currently envisions a traditional software-as-a-service pricing model, he said.
Singh also expects hardware demand from large existing accounts to remain high in the fourth quarter before returning toward normal levels over the next couple of quarters. Menar said PAR had made early memory-chip commitments that leave it supplied for at least a year and secured pricing approximately 30% to 40% below current chip rates.
About PAR Technology (NYSE:PAR)
PAR Technology Corporation (NYSE:PAR) provides technology solutions for the restaurant and hospitality industries. Its offerings include point-of-sale systems, restaurant management software, digital ordering, loyalty and customer-engagement tools, payment solutions, workforce management, and related hardware and support services.
The company’s portfolio includes Brink POS, a cloud-based restaurant point-of-sale platform, and Punchh, a customer loyalty and engagement platform. PAR also provides tools designed to help restaurant operators manage digital channels, payments, data, and guest relationships through integrated technology solutions.
Founded in 1968, PAR Technology has expanded from its origins in restaurant and hospitality technology through organic development and acquisitions, including Punchh and Stuzo.
