Summary of Business and Significant Accounting Policies

3 Months Ended

Mar. 31, 2026

Summary of Business and Significant Accounting Policies

Nature of Business

The Company, through its consolidated subsidiaries, operates in one segment, Restaurant/Retail. Refer to "Note 12 — Segment and Related Information" for further detail on our segment. The Restaurant/Retail segment provides leading omnichannel cloud-based software and hardware solutions to the restaurant and retail industries.

Our product and service offerings include point-of-sale, customer engagement and loyalty, digital ordering and delivery, operational intelligence, payment processing, hardware, and related technologies, solutions, and services. We provide enterprise restaurants, franchisees, and other foodservice outlets with operational efficiencies through a data-driven network with integration capabilities from front- and back-of-house to customer fulfillment. Our subscription services are grouped into two product lines: Engagement Cloud and Operator Cloud. Engagement Cloud includes: PAR Engagement — a unified suite that combines Punchh and PAR Ordering solutions — for customer loyalty, engagement, and omnichannel digital ordering and delivery; Plexure, for international customer loyalty and engagement; PAR Retail, which provides customer loyalty and engagement solutions for convenience and fuel retailers; and Bridg, an identity resolution and shopper intelligence platform. Operator Cloud includes PAR POS and TASK for front-of-house, PAR Pay for payments, and PAR OPS — a suite of back-of-house solutions that combines Delaget and Data Central product offerings. The accompanying condensed consolidated financial statements include the Company's accounts and those of its consolidated subsidiaries. All intercompany transactions have been eliminated in consolidation.

Basis of Presentation

The accompanying financial statements of PAR Technology Corporation and its consolidated subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and the instructions to Form 10-Q and Regulation S-X pertaining to interim financial statements as promulgated by the SEC. In the opinion of management, the Company's financial statements include all normal and recurring adjustments necessary in order to make the financial statements not misleading and to provide a fair presentation of the Company's financial results for the interim period included in this Quarterly Report. Interim results are not necessarily indicative of results for the full year or any future periods. The information included in this Quarterly Report should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the “2025 Annual Report”).

The results of operations of the Company's Government segment are reported as discontinued operations in the condensed consolidated statements of operations for all periods presented. All results and information in the condensed consolidated financial statements are presented as continuing operations and exclude the Government segment unless otherwise noted specifically as discontinued operations.

Use of Estimates

The preparation of the financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to these estimates and assumptions include revenue recognition, stock-based compensation, the recognition and measurement of assets acquired and liabilities assumed in business combinations and asset acquisitions at fair value, identifiable intangible assets and goodwill, valuation allowances for receivables, and valuation of excess and obsolete inventories. Actual results could differ from those estimates.

Cash and Cash Equivalents and Cash Held on Behalf of Customers

Cash and cash equivalents and cash held on behalf of customers consist of the following:


(in thousands)	March 31, 2026		December 31, 2025
Cash and cash equivalents
Cash	$	75,211	$	77,405
Money market funds	2,021		2,160
Cash held on behalf of customers	13,552		14,120
Total cash and cash equivalents and cash held on behalf of customers	$	90,784	$	93,685

The Company maintained bank balances that, at times, exceeded the federally insured limit during the three months ended March 31, 2026. The Company did not experience losses relating to these deposits and management does not believe that the Company is exposed to any significant credit risk with respect to these amounts.

Other Current Assets and Other Assets

Other current assets consist of the following:


(in thousands)	March 31, 2026		December 31, 2025
Prepaid expenses	$	18,526	$	16,984
Current portion of deferred implementation costs	3,345		3,477
Current portion of deferred commissions	3,974		3,419
Income taxes receivable	2,586		3,409
Other	1,370		2,236
Total other current assets	$	29,801	$	29,525

Other assets consist of the following:


(in thousands)	March 31, 2026		December 31, 2025
Deferred implementation costs	$	2,214	$	2,578
Deferred commissions	6,180		5,591
Deferred taxes	1,600		1,592
Other	2,470		3,585
Total other assets	$	12,464	$	13,346

The following table summarizes amortization expense for deferred implementation costs and deferred commissions:


	Three Months Ended March 31,
(in thousands)	2026		2025
Amortization of deferred implementation costs	$	1,322	$	1,371
Amortization of deferred commissions	$	435	$	440

Other Long-Term Liabilities

Other long-term liabilities include deferred tax liabilities of $18.3 million and $18.4 million at March 31, 2026 and December 31, 2025, respectively.

Recently Adopted Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-04, Induced Conversions of Convertible Debt Instruments, which is intended to clarify the assessment of whether a transaction should be accounted for as an induced conversion or extinguishment of convertible debt. ASU 2024-04 became effective for fiscal years beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. The adoption of ASU 2024-04 did not have an impact on the Company's condensed consolidated financial statements or related disclosures. Refer to "Note 7 — Debt" for further information regarding the Company's convertible debt transactions.

Accounting Pronouncements Not Yet Adopted

There were no recent accounting pronouncements or changes in accounting pronouncements during the three months ended March 31, 2026 that are of significance or potential significance to the Company.