Restaurant technology provider PAR Technology NYSE:PAR reported Q2 CY2026 results topping the market’s revenue expectations, with sales up 18.7% year on year to $133.4 million. Guidance for next quarter’s revenue was better than expected at $130 million at the midpoint, 1.3% above analysts’ estimates. Its non-GAAP profit of $0.18 per share was 47.9% above analysts’ consensus estimates.
PAR Technology (PAR) Q2 CY2026 Highlights:
- Revenue: $133.4 million vs analyst estimates of $125.2 million (18.7% year-on-year growth, 6.5% beat)
- Adjusted EPS: $0.18 vs analyst estimates of $0.12 (47.9% beat)
- Adjusted EBITDA: $14.28 million vs analyst estimates of $10.39 million (10.7% margin, 37.4% beat)
- The company lifted its revenue guidance for the full year to $519.5 million at the midpoint from $507.5 million, a 2.4% increase
- EBITDA guidance for the full year is $51.5 million at the midpoint, above analyst estimates of $45.36 million
- Operating Margin: -9.7%, up from -15.4% in the same quarter last year
- Annual Recurring Revenue: $338 million vs analyst estimates of $339.6 million (17.9% year-on-year growth, in line)
- Market Capitalization: $726.8 million
Company Overview
Originally founded in 1968 as a defense contractor for the U.S. government, PAR Technology NYSE:PAR provides cloud-based software, payment processing, and hardware solutions that help restaurants manage everything from point-of-sale to customer loyalty programs.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.
With $496.7 million in revenue over the past 12 months, PAR Technology is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. On the bright side, it can grow faster because it has more room to expand.
As you can see below, PAR Technology grew its sales at an incredible 16% compounded annual growth rate over the last five years. This shows it had high demand, a useful starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. PAR Technology’s annualized revenue growth of 31.6% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.
We can dig further into the company’s sales dynamics by analyzing its annual recurring revenue (ARR), or the predictable, normalized yearly income from subscriptions and contracts.PAR Technology’s ARR reached $338 million in the latest quarter and averaged 45.5% year-on-year growth over the last two years. Because this number is better than its normal revenue growth, we can see the company’s proportion of recurring revenue from long-term contracts and subscriptions has increased. This implies more stability in its business model and revenue streams.
This quarter, PAR Technology reported year-on-year revenue growth of 18.7%, and its $133.4 million of revenue exceeded Wall Street’s estimates by 6.5%. Company management is currently guiding for a 9.1% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 9.1% over the next 12 months, a deceleration versus the last two years. Still, this projection is admirable and implies the market sees success for its products and services.
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Adjusted Operating Margin
PAR Technology’s high expenses have contributed to an average adjusted operating margin of negative 18.1% over the last five years. Unprofitable business services companies require extra attention because they could get caught swimming naked when the tide goes out. It’s hard to trust that the business can endure a full cycle.
On the plus side, PAR Technology’s adjusted operating margin rose by 5.8 percentage points over the last five years, as its sales growth gave it operating leverage. Still, it will take much more for the company to reach long-term profitability.
PAR Technology’s adjusted operating margin was negative 9.7% this quarter.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
PAR Technology’s full-year EPS flipped from negative to positive over the last five years. This is a good sign and shows it’s at an inflection point.
Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.
For PAR Technology, its two-year annual EPS growth of 53.4% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base.
In Q2, PAR Technology reported adjusted EPS of $0.18, up from $0.03 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects PAR Technology’s full-year EPS to grow 123% from $0.40 to $0.89.
Key Takeaways from PAR Technology’s Q2 Results
It was good to see PAR Technology beat analysts’ EPS expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. On the other hand, its ARR was in line. Zooming out, we think this quarter featured some important positives. The stock traded up 4.2% to $17.87 immediately after reporting.
PAR Technology put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. .