What Happened?
Shares of restaurant technology provider PAR Technology (NYSE:PAR) fell 3.3% in the morning session after investors continued to react to its recent third-quarter earnings report, where the company missed profit expectations even as it beat on revenue.
The software maker posted its results on November 6th, reporting earnings of $0.06 per share, which missed analysts' consensus estimates of $0.09. On a positive note, revenue for the quarter came in at $119.18 million, beating estimates of $112.23 million and rising 23% from the prior year's quarter. PAR Technology also reported a narrower net loss of $18.2 million compared to $19.8 million in the same period of the previous year. Adding to the pressure, BTIG Research lowered its price target on the stock to $60.00 from $65.00 following the earnings release.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy PAR Technology? Access our full analysis report here.
What Is The Market Telling Us
PAR Technology’s shares are quite volatile and have had 17 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 10 days ago when the stock gained 12.9% on the news that the company reported strong third-quarter 2025 financial results that surpassed analyst expectations.
The restaurant technology provider announced revenue of $119.2 million, up 23.2% year-on-year, which beat Wall Street estimates. More impressively, the company posted an adjusted profit of $0.06 per share, a significant surprise to analysts who had forecast a loss. While its Annual Recurring Revenue (ARR), a key metric for subscription businesses, slightly missed expectations, investors clearly focused on the strong revenue growth and the unexpected swing to profitability. The positive results demonstrated accelerating demand and improving operational leverage for the company's restaurant software and hardware solutions.
PAR Technology is down 47% since the beginning of the year, and at $37.88 per share, it is trading 53.3% below its 52-week high of $81.14 from November 2024. Investors who bought $1,000 worth of PAR Technology’s shares 5 years ago would now be looking at an investment worth $759.97.
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