PAR Technology Corporation (NYSE: PAR) reported robust financial results for the first quarter of 2025, indicative of solid growth in its subscription service revenue and overall Annual Recurring Revenue (ARR). The company achieved total revenues of $104 million, a 48% increase compared to $70 million in the same quarter of 2024, driven primarily by a notable 78% surge in subscription service revenue, which reached $68.4 million, inclusive of 20% organic growth.

The company’s total ARR increased to $282 million, representing a 52% year-over-year growth. This growth included an 18% increase in organic ARR. Sequentially, ARR grew by $10 million or 3.7% from the prior quarter on a constant currency basis.

PAR’s non-GAAP gross profit also showed significant improvement, with an increase of 86% year-over-year in total gross margin to $48 million. The gross margin percentage for subscription services rose to 69.1%, up from 65.7% in the previous year.

The adjusted EBITDA for the quarter stood at $4.5 million, marking an improvement of nearly $15 million compared to the same quarter last year. This amount demonstrates consistent operational leverage, reflecting the company’s strategy to enhance profitability through efficient scale.

In terms of operating expenses, total operating costs increased to $64 million from $52 million in Q1 2024, with a significant portion attributed to increases in sales and marketing as well as general and administrative expenses, largely driven by acquisitions. However, non-GAAP operating expenses as a percentage of total revenue improved substantially, showing a trajectory toward enhanced efficiency.

Net loss from continuing operations was reported at $25 million, or a loss of $0.61 per share, compared to a net loss of $20 million, or $0.69 per share, in the same period a year ago. However, the non-GAAP net loss significantly improved to approximately $250,000, or $0.01 loss per share, compared to a non-GAAP net loss of $14 million, or $0.47 loss per share for the prior year.

The company reported cash and cash equivalents of $92 million as of March 31, 2025, alongside $0.5 million in short-term investments and cash usage in operating activities from continuing operations amounting to $17 million for the quarter, compared to $24 million in the prior year.

Hardware revenue for the quarter was reported at $22 million, which was a 20% increase from $18 million a year ago. Additionally, professional services generated $13.6 million, marginally unchanged from the prior year’s figure of $13.5 million.

The company’s ability to sign multi-product deals is evident as 57% of new signed engagement deals were of this nature, a considerable increase from 16% year-over-year, highlighting a strategic focus on cross-selling across product lines. These metrics demonstrate PAR Technology’s ongoing emphasis on delivering integrated solutions to its customer base while enhancing operational efficiency and profitability. The results collectively define an upward trajectory for the company in the fast-evolving technology landscape of the food service industry.