--- title: "PAR Tech | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 123.97 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285624590.md" datetime: "2026-05-07T21:32:48.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285624590.md) - [en](https://longbridge.com/en/news/285624590.md) - [zh-HK](https://longbridge.com/zh-HK/news/285624590.md) --- # PAR Tech | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 123.97 M Revenue: As of FY2026 Q1, the actual value is USD 123.97 M, beating the estimate of USD 116.37 M. EPS: As of FY2026 Q1, the actual value is USD -0.39, beating the estimate of USD -0.3938. EBIT: As of FY2026 Q1, the actual value is USD -11.95 M. #### Overall Performance Highlights PAR Technology Corporation reported a total revenue increase of 19.4% to $124.0 million for the three months ended March 31, 2026, compared to $103.9 million in the prior year period. The company’s net loss from continuing operations improved by -34.1% to - $16.169 million, from - $24.547 million in the previous year. The total gross margin decreased by 250 basis points to 44.0% of revenue in 2026, down from 46.5% in 2025. #### Segment Revenue - **Subscription Service Revenue**: Increased by 14.8% to $78.522 million in 2026, up from $68.410 million in 2025, primarily driven by a $6.2 million increase in Engagement Cloud subscription service revenues and a $3.9 million increase in Operator Cloud subscription service revenues. - **Hardware Revenue**: Increased by 33.9% to $29.254 million in 2026, from $21.843 million in 2025, mainly due to higher sales of terminals (+$3.8 million), peripherals (+$0.9 million), kiosks (+$0.9 million), and international sales (+$0.8 million). - **Professional Service Revenue**: Increased by 19.0% to $16.197 million in 2026, from $13.606 million in 2025, primarily driven by a $2.3 million increase in installation revenues for Tier 1 Operator Cloud customers. #### Gross Margin by Segment - **Subscription Service Gross Margin**: Decreased by 220 basis points to 55.6% of subscription service revenue in 2026, down from 57.8% in 2025, reflecting a shift in revenue mix towards product and service offerings with comparatively lower gross margins. - **Hardware Gross Margin**: Decreased by 300 basis points to 21.6% of hardware revenue in 2026, from 24.6% in 2025, attributed to a shift in hardware product mix and higher tariff-related costs. - **Professional Service Gross Margin**: Increased by 240 basis points to 27.8% of professional service revenue in 2026, up from 25.4% in 2025, due to better margins in hardware service repair and field operations, resulting from reduced third-party spending and enhanced cost management. #### Operating Expenses - **Sales and Marketing**: Increased by 4.3% to $12.285 million in 2026, from $11.782 million in 2025, mainly due to a $0.8 million increase in marketing expenses and a $0.3 million increase in severance costs, partially offset by decreases in recurring compensation and contracted services. - **General and Administrative**: Increased by 4.8% to $30.696 million in 2026, from $29.284 million in 2025, primarily driven by a $1.2 million increase in severance costs related to non-recurring restructuring events. - **Research and Development**: Increased by 11.2% to $21.975 million in 2026, from $19.767 million in 2025, mainly due to a $0.8 million increase in outsourced development costs, a $0.6 million increase in recurring compensation costs, and a $0.6 million increase in severance costs. - **Amortization of Identifiable Intangible Assets**: Remained relatively stable at $3.431 million in 2026, compared to $3.259 million in 2025. #### Other Financial Items - **Other Income (Expense), Net**: Shifted to an income of $0.827 million in 2026, from an expense of - $0.091 million in 2025, primarily due to foreign currency fluctuations. - **Interest Expense, Net**: Increased to - $1.932 million in 2026, from - $1.634 million in 2025. - **Gain (Loss) on Extinguishment of Debt, Net**: Recorded a gain of $0.380 million in 2026, compared to a loss of - $5.791 million in 2025, with the 2026 gain resulting from a $3.9 million gain on the repurchase of 2027 Notes, partially offset by a - $3.5 million loss on the induced conversion of 2026 Notes. - **Provision for Income Taxes**: Increased to - $1.558 million in 2026, from - $1.281 million in 2025. - **Net Income from Discontinued Operations**: Was $0 in 2026, down from $0.197 million in 2025. #### Key Performance Indicators (KPIs) - **Annual Recurring Revenue (ARR)**: Total ARR grew by 16.4% to $330.094 million as of March 31, 2026, from $283.626 million as of March 31, 2025. - **Engagement Cloud ARR**: Increased by 19.6% to $198.303 million, including $14.383 million from the Bridg Asset Acquisition. - **Operator Cloud ARR**: Increased by 11.9% to $131.791 million. - **Active Sites**: Total Engagement Cloud active sites increased by 15.3% to 139.0 thousand, including 34.0 thousand from the Bridg Asset Acquisition. Total Operator Cloud active sites increased by 2.2% to 60.3 thousand. #### Cash Flow - **Net Cash Used in Operating Activities**: Decreased to - $16.644 million for the three months ended March 31, 2026, from - $17.171 million in the prior year, primarily due to improved core operational profitability, partially offset by increased inventory investment. - **Net Cash Used in Investing Activities**: Decreased to - $2.965 million in 2026, from - $5.677 million in 2025, including $2.369 million for developed technology and $0.321 million for fixed assets in 2026. - **Net Cash Provided by Financing Activities**: Increased to $17.809 million in 2026, from $10.736 million in 2025, mainly due to $257.050 million in proceeds from 2031 Notes, partially offset by $206.170 million to repurchase 2027 Notes and - $33.125 million for common stock repurchases. #### Future Outlook and Strategy PAR Technology Corporation anticipates ongoing supply chain challenges, commodity cost volatility, and consumer and economic uncertainty due to macroeconomic trends and global trade policies. The company plans to implement additional pricing actions and will continuously evaluate its pricing strategy quarterly to mitigate these impacts. Management believes existing cash, cash equivalents, and expected cash flows from operations will be sufficient to cover contractual obligations over the next 12 months, with potential for equity or debt financing for non-current obligations. ### Related Stocks - [PAR.US](https://longbridge.com/en/quote/PAR.US.md) ## Related News & Research - [Major Investor Quietly Makes a Bold Move Into Par Technology Stock](https://longbridge.com/en/news/286847986.md) - [Stephens Investment Management Group LLC Increases Stock Position in PAR Technology Corporation $PAR](https://longbridge.com/en/news/286746769.md) - [ONWARD Medical to Announce First Quarter 2026 Results on May 26, 2026 | ONWRY Stock News](https://longbridge.com/en/news/286858298.md) - [The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance | HD Stock News](https://longbridge.com/en/news/286890512.md) - [Royce Small-Cap Trust (NYSE: RVT) as of Apr 30, 2026 | RVT Stock News](https://longbridge.com/en/news/287103750.md)