PAR Technology Corp. (PAR) 2Q26 Takeaways Topline beat with cost discipline driving better than expected profitability

Equity Research 6 August 2026 | 9:41PM EDT

PAR Technology Corp. (PAR): 2Q26 Takeaways: Topline beat with cost discipline driving better than expected profitability

Bottom line: Results came in better than expected, with one time hardware Will Nance | refreshes driving strong hardware revenues in the quarter, and strong cost discipline Goldman Sachs & Co. LLC

putting EBITDA ahead of street estimates. ARR grew 17% in the quarter, 12% Jack Evans | organically, with the company highlighting continued momentum in both restaurant Goldman Sachs & Co. LLC

and retail, calling out particular strength in PAR Ordering, which had several large Chandru Ravikumar | competitive takeaways in the quarter. Looking forward, the company continues to Goldman Sachs India SPL grow its backlog, with Burger King and Papa Johns roll outs expected to drive 2H organic ARR acceleration into the mid-teens against tougher 2H25 comps. Putting it all together, although we remain impressed with the competitive positioning of PAR and their ability to sustain continued T1 and T2 QSR and Retail wins across both software and hardware, we believe the less mature profitability profile remains an overhang and continue to look for greater clarity on the trajectory of ARR growth to get more constructive.

2Q26 Results: PAR reported 2Q26 revenue of ~$133mn vs. ~$125mn for consensus, with Subscription service and Professional service revenues were both in-line with consensus estimates. Total ARR was in-line vs. consensus estimates ($338mn vs. $340mn consensus), while total gross profit came in in-line at $57mn. Adjusted Subscription gross profit came in at ~$46mn with ~55% margins (relative to street estimates of $47mn and 56%). On a GAAP basis, operating expenses came in at $69mn (3% above the Street). Putting it all together, adjusted EBITDA of ~$14.3mn (11% margin) was above consensus of $10.5mn.

Guidance: PAR provided 3Q26 and full year FY26 guidance.

For 3Q26, mgmt expects Total revenue in the range of $128mn-$132mn with the midpoint ~+1% vs. consensus expectations of $128mn. Mgmt expects Adjusted EBITDA in the range of $13.5mn-$14.5mn with the midpoint ~+13% vs. consensus expectations of ~$12.4mn.

For FY26, mgmt expects Total revenue in the range of $516mn-$523mn with the midpoint ~+2% vs. consensus expectations of ~$511mn. Mgmt expects Adjusted EBITDA in the range of $50mn-$53mn with the midpoint ~+12% vs. consensus expectations of ~$45.8mn.

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Goldman Sachs PAR Technology Corp. (PAR)

Exhibit 1: PAR Actual vs. Estimate PAR Estimates vs Actuals Actual Actual Actual GS est. Cons. est Act vs GS Act vs cons QoQ YoY 2Q25 1Q26 2Q26A 2Q26 2Q26 %∆ %∆ 2Q/1Q 26/25

Hardware % 30% 20% 31% Subscription Service % 1% 6% 16% Revenue Professional Service % -3% -8% 10% Service % 0% 4% 15% Total revenue % 7% 8% 19% Hardware CoS % 33% 22% 43% Subscription Service % 3% 7% 16% Professional Service % 4% -1% 19% Service CoS % 3% 5% 17% Total CoS % 12% 11% 25% Product Gross Profit % 21% 13% -3% % margin 27% 22% 20% 22% 22% -167 bps -161 bps -129 bps -693 bps Gross Profit Sub Service Gross Profit % -1% 5% 16% % margin 55% 56% 55% 56% 56% -93 bps -89 bps -38 bps -7 bps Prof Service Gross Profit % -21% -25% -13% % margin 29% 28% 23% 26% 28% -277 bps -537 bps -509 bps -593 bps Total Service Gross Profit % -3% 3% 13% % margin 51% 51% 50% 52% 52% -126 bps -144 bps -57 bps -76 bps Total Gross Profit % 0% 4% 11% % margin 45% 44% 42% 45% 45% -292 bps -291 bps -155 bps -295 bps SG&A % -10% -12% -14% R&D % 3% 2% 8% Operating Other 3 3 9 3 3 168% 173% 166% 169% Expenses / Total operating expenses % 3% 2% 2% Income Operating income - % 23% -7% -25% % margin -15% -11% -10% -8% -8% -206 bps…