# PAR TECHNOLOGY CORP (PAR) Informational only - not investment advice. CIK: 0000708821 SIC: 3578 Calculating & Accounting Machines (No Electronic Computers) SIC breadcrumb: [Manufacturing](/division/D/) > [Industrial And Commercial Machinery And Computer Equipment](/major-group/35/) > [SIC 3578 Calculating & Accounting Machines (No Electronic Computers)](/industry/3578/) Latest 10-K filed: 2026-02-26 SEC page: https://www.sec.gov/edgar/browse/?CIK=708821 Filing source: https://www.sec.gov/Archives/edgar/data/708821/000070882126000027/par-20251231.htm ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 455547000 | USD | 2025 | 2026-02-26 | | Net income | -84461000 | USD | 2025 | 2026-02-26 | | Assets | 1369144000 | USD | 2025 | 2026-02-26 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000708821.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | 232,605,000 | 201,246,000 | 187,232,000 | 213,786,000 | 282,876,000 | 262,347,000 | 276,714,000 | 349,982,000 | 455,547,000 | | Net income | 1,783,000 | -3,386,000 | -24,122,000 | -15,571,000 | -36,562,000 | -75,799,000 | -69,319,000 | -69,752,000 | -4,987,000 | -84,461,000 | | Operating income | 2,213,000 | -121,000 | -10,275,000 | -14,185,000 | -23,946,000 | -53,881,000 | -69,059,000 | -71,720,000 | -79,097,000 | -68,771,000 | | Gross profit | 46,200,000 | 51,011,000 | 37,519,000 | 37,411,000 | 39,325,000 | 62,121,000 | 81,717,000 | 89,446,000 | 146,124,000 | 198,026,000 | | Diluted EPS | 0.11 | -0.22 | -1.50 | -0.96 | -1.92 | -3.02 | -2.55 | -2.53 | -0.14 | -2.09 | | Operating cash flow | 10,996,000 | 314,000 | -3,849,000 | -16,129,000 | -20,243,000 | -53,156,000 | -43,070,000 | -17,075,000 | -25,246,000 | -27,158,000 | | Capital expenditures | 3,433,000 | 5,071,000 | 3,948,000 | 2,462,000 | 1,299,000 | 1,435,000 | 1,163,000 | 5,018,000 | 970,000 | 3,323,000 | | Assets | 124,511,000 | 114,624,000 | 94,681,000 | 189,612,000 | 343,749,000 | 888,149,000 | 854,858,000 | 802,606,000 | 1,380,727,000 | 1,369,144,000 | | Liabilities | 54,931,000 | 45,638,000 | 48,735,000 | 116,765,000 | 155,344,000 | 383,804,000 | 479,664,000 | 469,541,000 | 509,017,000 | 543,994,000 | | Stockholders' equity | 69,580,000 | 68,986,000 | 45,946,000 | 72,847,000 | 188,405,000 | 504,345,000 | 375,194,000 | 333,065,000 | 871,710,000 | 825,150,000 | | Cash and cash equivalents | 9,055,000 | 6,600,000 | 3,485,000 | 28,036,000 | 180,686,000 | 188,419,000 | 70,328,000 | 37,183,000 | 108,117,000 | 79,565,000 | | Free cash flow | 7,563,000 | -4,757,000 | -7,797,000 | -18,591,000 | -21,542,000 | -54,591,000 | -44,233,000 | -22,093,000 | -26,216,000 | -30,481,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | -1.46% | -11.99% | -8.32% | -17.10% | -26.80% | -26.42% | -25.21% | -1.42% | -18.54% | | Operating margin | | -0.05% | -5.11% | -7.58% | -11.20% | -19.05% | -26.32% | -25.92% | -22.60% | -15.10% | | Return on equity | 2.56% | -4.91% | -52.50% | -21.37% | -19.41% | -15.03% | -18.48% | -20.94% | -0.57% | -10.24% | | Return on assets | 1.43% | -2.95% | -25.48% | -8.21% | -10.64% | -8.53% | -8.11% | -8.69% | -0.36% | -6.17% | | Liabilities / equity | 0.79 | 0.66 | 1.06 | 1.60 | 0.82 | 0.76 | 1.28 | 1.41 | 0.58 | 0.66 | | Current ratio | 1.75 | 1.74 | 1.36 | 2.22 | 6.23 | 4.68 | 3.30 | 2.25 | 1.95 | 1.66 | ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-07. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000708821.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q2 | 2022-06-30 | | | -0.70 | reported discrete quarter | | 2022-Q3 | 2022-09-30 | | | -0.79 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | -0.58 | reported discrete quarter | | 2023-Q2 | 2023-03-31 | | -15,905,000 | | reported discrete quarter | | 2023-Q2 | 2023-06-30 | 100,544,000 | | -0.72 | reported discrete quarter | | 2023-Q3 | 2023-06-30 | | -19,702,000 | | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 107,134,000 | | -0.56 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 107,708,000 | -18,629,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 105,497,000 | -18,288,000 | -0.62 | reported discrete quarter | | 2024-Q2 | 2024-03-31 | | -18,288,000 | | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 78,150,000 | | 1.60 | reported discrete quarter | | 2024-Q3 | 2024-06-30 | | 54,190,000 | | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 96,754,000 | | -0.56 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 105,005,000 | -21,057,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 103,859,000 | -24,350,000 | -0.60 | reported discrete quarter | | 2025-Q2 | 2025-03-31 | | -24,350,000 | | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 112,404,000 | | -0.52 | reported discrete quarter | | 2025-Q3 | 2025-06-30 | | -21,040,000 | | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 119,183,000 | | -0.45 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 120,101,000 | -20,894,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 123,973,000 | -16,169,000 | -0.39 | reported discrete quarter | ## Macro Cross-References - [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit - [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity - [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy - [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food - [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy - [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter - [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index - [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate - [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate - [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio - [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed - [CE16OV](/indicator/CE16OV/): Employment Level - [ICSA](/indicator/ICSA/): Initial Claims - [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm - [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income - [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate - [M2SL](/indicator/M2SL/): M2 - [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance - [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States - [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States - [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States - [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States - [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States - [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized - [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized - [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks - [GDP](/indicator/GDP/): Gross Domestic Product - [GPDI](/indicator/GPDI/): Gross Private Domestic Investment - [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment - [PCEC](/indicator/PCEC/): Personal Consumption Expenditures - [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services - [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt - [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product - [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit - [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts - [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures - [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing - [USCONS](/indicator/USCONS/): All Employees, Construction - [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade - [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities - [USGOVT](/indicator/USGOVT/): All Employees, Government - [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private - [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods - [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft - [BUSINV](/indicator/BUSINV/): Total Business Inventories - [EXPGS](/indicator/EXPGS/): Exports of Goods and Services - [IMPGS](/indicator/IMPGS/): Imports of Goods and Services - [IR](/indicator/IR/): Import Price Index (End Use): All Commodities - [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/708821/000070882126000078/par-20260331.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-05-07 Report date: 2026-03-31 Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and the notes thereto included under "Part I, Item 1. Financial Statements (unaudited)" of this Quarterly Report and our audited consolidated financial statements and the notes thereto included under "Part II, Item 8. Financial Statements and Supplementary Data" of the 2025 Annual Report. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors, including those discussed under "Forward-Looking Statements". OVERVIEW Q1 2026 Operating Performance Highlights Organic - Year-over-year growth of 11.3% Total - Year-over-year growth of 16.4% GAAP - Year-over-year decrease of 220 basis points (bps) Non-GAAP - Year-over-year decrease of 350 bps Net Loss from Cont. Ops. Year-over-year improvement of $8.4 million Adjusted EBITDA Year-over-year improvement of $4.4 million Refer to "Key Performance Indicators and Non-GAAP Financial Measures" below for important information on key performance indicators and non-GAAP financial measures, including annual recurring revenue ("ARR"), non-GAAP subscription service gross margin percentage, and adjusted EBITDA. We use these key performance indicators and non-GAAP financial measures to evaluate our performance. 21 Table of Contents Macroeconomic Environment The tariff and supply chain environment remains complex and evolving. Beginning in the second quarter of 2025, the U.S. government implemented a series of significant new tariffs, including under the International Emergency Economic Powers Act ("IEEPA"), affecting imports from several countries where we source certain components and hardware products. Other countries responded with retaliatory actions or plans for retaliatory actions. On February 20, 2026, the U.S. Supreme Court held that IEEPA does not authorize the President to impose tariffs, though the administrative process for seeking refunds remains under development and subject to considerable uncertainty. Following the ruling, the administration announced a replacement, time-limited 10% global ad valorem tariff effective February 24, 2026, which has subsequently been subject to legal challenge. In March 2026, the U.S. Trade Representative was directed to initiate new investigations for the purpose of building the legal foundation for a second round of durable, country-specific tariffs. The resulting situation remains uncertain and fluid. Additionally, increased demand for hardware products and components from AI data center construction around the world continues to create uncertainty as to whether these products will be available or available in needed quantities and quality or at favorable or competitive prices. We continue to monitor macroeconomic trends and uncertainties in light of continuing changes to global trade policies and supply chain pressures, which may have adverse effects on our hardware revenue and hardware gross margin. As a result of these events, we anticipate increased supply chain challenges, commodity cost volatility, and consumer and economic uncertainty. Management continues to evaluate and implement mitigating actions, including potential supply chain resiliency movements, cost or pricing measures and alternative shipping practices, if needed, as the macroeconomic environment evolves. 22 Table of Contents RESULTS OF OPERATIONS Consolidated Results: Three Months Ended March 31, Percentage of total revenue Increase (decrease) (in thousands) 2026 2025 2026 2025 2026 vs 2025 Revenues, net: Subscription service $ 78,522  $ 68,410  63.3  % 65.9  % 14.8  % Hardware 29,254  21,843  23.6  % 21.0  % 33.9  % Professional service 16,197  13,606  13.1  % 13.1  % 19.0  % Total revenues, net $ 123,973  $ 103,859  100.0  % 100.0  % 19.4  % Gross margin: Subscription service $ 43,669  $ 39,510  35.2  % 38.0  % 10.5  % Hardware 6,326  5,375  5.1  % 5.2  % 17.7  % Professional service 4,506  3,457  3.6  % 3.3  % 30.3  % Total gross margin $ 54,501  $ 48,342  44.0  % 46.5  % 12.7  % Operating expenses: Sales and marketing $ 12,285  $ 11,782  9.9  % 11.3  % 4.3  % General and administrative 30,696  29,284  24.8  % 28.2  % 4.8  % Research and development 21,975  19,767  17.7  % 19.0  % 11.2  % Amortization of identifiable intangible assets 3,431  3,259  2.8  % 3.1  % 5.3  % Total operating expenses $ 68,387  $ 64,092  55.2  % 61.7  % 6.7  % Operating loss $ (13,886) $ (15,750) (11.2) % (15.2) % (11.8) % Other income (expense), net 827  (91) 0.7  % (0.1) % 200% Interest expense, net (1,932) (1,634) (1.6) % (1.6) % 18.2  % Gain (loss) on extinguishment of debt, net 380  (5,791) 0.3  % (5.6) % (106.6) % Loss from continuing operations before income taxes (14,611) (23,266) (11.8) % (22.4) % (37.2) % Provision for income taxes (1,558) (1,281) (1.3) % (1.2) % 21.6  % Net loss from continuing operations $ (16,169) $ (24,547) (13.0) % (23.6) % (34.1) % Net income from discontinued operations —  197  —  % 0.2  % (100.0) % Net loss $ (16,169) $ (24,350) (13.0) % (23.4) % (33.6) % 23 Table of Contents Revenues, Net Three Months Ended March 31, Percentage of total revenue Increase (decrease) (in thousands) 2026 2025 2026 2025 2026 vs 2025 Subscription service $ 78,522  $ 68,410  63.3  % 65.9  % 14.8  % Hardware 29,254  21,843  23.6  % 21.0  % 33.9  % Professional service 16,197  13,606  13.1  % 13.1  % 19.0  % Total revenues, net $ 123,973  $ 103,859  100.0  % 100.0  % 19.4  % For the three months ended March 31, 2026 compared to the three months ended March 31, 2025 Total revenues were $124.0 million for the three months ended March 31, 2026, an increase of $20.1 million or 19.4% compared to $103.9 million for the three months ended March 31, 2025. Subscription service revenues were $78.5 million for the three months ended March 31, 2026, an increase of $10.1 million or 14.8% compared to $68.4 million for the three months ended March 31, 2025. The increase was primarily driven by increased Engagement Cloud subscription service revenues of $6.2 million, primarily driven by growth in average revenue per site through cross-selling initiatives, upselling, and price increases. Operator Cloud subscription service revenues increased $3.9 million, primarily driven by growth in active sites. Hardware revenues were $29.3 million for the three months ended March 31, 2026, an increase of $7.4 million or 33.9% compared to $21.8 million for the three months ended March 31, 2025. The increase was primarily driven by increased revenues from sales of terminals of $3.8 million, peripherals (scanners, printers, and components) of $0.9 million, kiosks of $0.9 million, and an increase in international sales of $0.8 million. These increases were substantially driven by the timing of tier-one enterprise customer hardware refresh cycles and the onboarding of Operator Cloud customers purchasing hardware. Hardware revenues will continue to be affected by the timing of the aforementioned drivers. Professional service revenues were $16.2 million for the three months ended March 31, 2026, an increase of $2.6 million or 19.0% compared to $13.6 million for the three months ended March 31, 2025. The increase was primarily driven by a $2.3 million increase in installation revenues associated with the onboarding of Tier 1 Operator Cloud customers. Gross Margin Three Months Ended March 31, Gross Margin Percentage Increase (decrease) (in thousands) 2026 2025 2026 2025 2026 vs 2025 Subscription service $ 43,669  $ 39,510  55.6  % 57.8  % (220) bps Hardware 6,326  5,375  21.6  % 24.6  % (300)  bps Professional service 4,506  3,457  27.8  % 25.4  % 240  bps Total gross margin $ 54,501  $ 48,342  44.0  % 46.5  % (250) bps For the three months ended March 31, 2026 compared to the three months ended March 31, 2025 Total gross margin as a percentage of revenue for the three months ended March 31, 2026, decreased to 44.0% from 46.5% for the three months ended March 31, 2025. Subscription service margin as a percentage of subscription service revenue for the three months ended March 31, 2026, decreased to 55.6% from 57.8% for the three months ended March 31, 2025. The decrease primarily reflects a change in subscription service revenue mix, as product and service offerings with comparatively lower gross margins represented a greater proportion of revenue, consistent with the mix shift that began in the second quarter of 2025. 24 Table of Contents Hardware margin as a percentage of hardware revenue for the three months ended March 31, 2026, decreased to 21.6% from 24.6% for the three months ended March 31, 2025. The decrease was driven by a shift in hardware product mix and higher tariff-related costs compared to the prior year. While pricing adjustments initiated in the third quarter of 2025 have partially mitigated these cost increases, they have not fully offset the impact, resulting in continued margin compression. The Company plans to implement additional pricing actions and will continue to evaluate its pricing strategy on a quarterly basis. Professional service margin as a percentage of professional service revenue for the three months ended March 31, 2026, increased to 27.8% from 25.4% for the three months ended March 31, 2025. The increase was primarily driven by improved margins in our hardware service repair operations and field operations as a result of reduced third-party spending and improved cost management. Sales and Marketing Expense ("S&M") Three Months Ended March 31, Percentage of total revenue Increase (decrease) (in thousands) 2026 2025 2026 2025 2026 vs 2025 Sales and marketing $ 12,285  $ 11,782  9.9  % 11.3  % 4.3  % For the three months ended March 31, 2026 compared to the three months ended March 31, 2025 S&M expenses were $12.3 million for the three months ended March 31, 2026, an increase of $0.5 million or 4.3% compared to $11.8 million for the three months ended March 31, 2025. The increase was primarily driven by a $0.8 million increase in marketing expenses and a $0.3 million increase in severance costs related to non-recurring restructuring events, partially offset by a $0.4 million decrease in recurring compensation costs and a $0.2 million decrease in contracted services. General and Administrative Expense ("G&A") Three Months Ended March 31, Percentage of total revenue Increase (decrease) (in thousands) 2026 2025 2026 2025 2026 vs 2025 General and administrative $ 30,696  $ 29,284  24.8  % 28.2  % 4.8  % For the three months ended March 31, 2026 compared to the three months ended March 31, 2025 G&A expenses were $30.7 million for the three months ended March 31, 2026, an increase of $1.4 million or 4.8% compared to $29.3 million for the three months ended March 31, 2025. The increase was primarily driven by a $1.2 million increase in severance costs related to non-recurring restructuring events. Research and Development Expenses ("R&D") Three Months Ended March 31, Percentage of total revenue Increase (decrease) (in thousands) 2026 2025 2026 2025 2026 vs 2025 Research and development $ 21,975  $ 19,767  17.7  % 19.0  % 11.2  % For the three months ended March 31, 2026 compared to the three months ended March 31, 2025 R&D expenses were $22.0 million for the three months ended March 31, 2026, an increase of $2.2 milli [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A Extracted from Item 7 to the first post-MD&A boundary after HTML sanitization. Confidence: high Item 7.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our audited consolidated financial statements and the notes thereto included under "Part II, Item 8. Financial Statements and Supplementary Data" of this Annual Report. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors, including those discussed under "Forward-Looking Statements" above and "Part I, Item 1A. Risk Factors" above. The following section generally discusses year-over-year comparisons between 2025 and 2024. Discussions related to year-over-year comparisons between 2024 and 2023 are included in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on March 3, 2025. 2025 Operating Performance Highlights Organic - Year-over-year growth of 15.0% Total - Year-over-year growth of 15.7% GAAP - Year-over-year improvement of 120 basis points (bps) Non-GAAP - Year-over-year improvement of 90 basis points (bps) Net Loss from Cont. Ops. Year-over-year improvement of $5.3 million Adjusted EBITDA Year-over-year improvement of $29.3 million Refer to "Key Performance Indicators and Non-GAAP Financial Measures" below for important information on key performance indicators, such as annual recurring revenue (ARR), and non-GAAP financial measures, including non-GAAP subscription service gross margin percentage and adjusted EBITDA. We use these key performance indicators and non-GAAP financial measures to evaluate our performance. 25 Table of Contents Macroeconomic Environment The tariff and supply chain environment is complex and evolving. Beginning in the second quarter of 2025, the U.S. government implemented a series of significant new tariffs, including on imports from several countries where we source certain components and hardware products. Other countries have responded with retaliatory actions or plans for retaliatory actions. There has been significant uncertainty resulting from the implementation, termination, and conditional pause of these tariffs and the situation remains fluid, including because of the U.S. Supreme Court's decision that the International Emergency Economic Powers Act does not authorize the President to impose tariffs. Additionally, increased demand for hardware products and components from AI data center construction around the world has created uncertainty as to whether these products will be available or available in needed quantities and quality or at favorable or competitive prices. We continue to monitor macroeconomic trends and uncertainties in light of continuing changes to global trade policies and supply chain pressures, which may have adverse effects on our hardware revenue and hardware gross margin. As a result of these events, we anticipate increased supply chain challenges, commodity cost volatility, and consumer and economic uncertainty. Management continues to evaluate and implement mitigating actions, including potential supply chain resiliency movements, cost or pricing measures and alternative shipping practices, if needed, as the macroeconomic environment evolves. On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was signed into law. The Act contains changes to U.S. federal tax law, including reinstatement of immediate expensing of domestic research and development expenditures, and has multiple effective dates. The enacted legislation did not have a material impact on our annual effective tax rate for the fiscal year ended December 31, 2025, and resulted in a decrease to taxes payable. We will continue to evaluate all applicable provisions of the legislation and their impact on our consolidated financial statements for the fiscal year ended December 31, 2026 and beyond. COMPONENTS OF RESULTS OF OPERATIONS Revenues Subscription Service Consists of revenue from software-as-a-service ("SaaS") solutions, related software support, managed platform development services, and transaction-based payment processing services. Hardware Consists of revenue from the sale of point-of-sale terminals and tablets, wireless headsets, drive-thru systems, kitchen display systems, kiosks, printers, payment devices, and other in-store peripherals. Professional Service Consists of revenue from hardware support, installations and implementations, and on-site and technical support. Cost of Sales Subscription Service Consists of expenses directly related to the delivery of our software, including customer support and infrastructure management personnel costs, hosting and cloud infrastructure costs, amortization of capitalized and acquired developed technology, third-party software licensing fees, and payment processing fees. Hardware Consists of expenses directly related to the production, procurement, and delivery of hardware products sold to customers, including manufacturing and procurement personnel costs, freight charges, excess and obsolete inventory expenses, and allocated overhead. 26 Table of Contents Professional Service Consists of the personnel costs of our deployment team associated with delivering these services and costs related to hardware repairs and advanced exchange contracts. Operating Expenses Sales and Marketing Consists of employee-related costs incurred for personnel that support sales and marketing activities, as well as general marketing and event costs. General and Administrative Consists of employee-related costs incurred for management and administrative functions, including finance, legal, human resources, and information technology. General and administrative expenses also include costs related to fees paid for certain professional services and software, insurance, and occupancy costs, as well as bad debt expense and depreciation expense. Research and Development Consists of uncapitalized engineering and product development personnel costs associated with improvements to our platform and the development of new product offerings and expenses associated with the use of third-party software directly related to the development of our products and services. Amortization of Identifiable Intangible Assets Consists of amortization expense related to acquired intangible assets including customer relationships, non-competition agreements, and trade names. Adjustment to Contingent Consideration Liability Reflects a reduction to the fair market value of the contingent consideration liability related to the acquisition of MENU Technologies A.G. in July 2022 (the “MENU Acquisition”). Gain on Insurance Proceeds Consists of insurance proceeds from the settlement of legacy insurance claims. Other Non-Operating Expenses Interest expense, net Consists of interest incurred on the 2026 Notes, 2027 Notes, and 2030 Notes, as well as on the credit facility with Blue Owl Capital Corporation as administrative agent and collateral agent and Blue Owl Credit Advisors, LLC as lead arranger and bookrunner (the "Credit Facility") prior to its repayment in January 2025 and on the 4.500% Convertible Senior Notes due 2024 (the "2024 Notes") prior to the induced conversion in October 2023, offset by interest earned from cash held in money market accounts and on our marketable securities. Loss on extinguishment of debt Represents the loss on inducement of our 2024 Notes and partial inducement of our 2026 Notes, and the loss related to the early repayment of the Credit Facility. Other (expense) income, net Consists of foreign currency transaction gains and losses and other miscellaneous non-operating income and expenses. 27 Table of Contents (Provision for) Benefit from Income Taxes Consists of U.S. federal and state income tax, international income taxes in various foreign jurisdictions, and interest and penalties related to income taxes. Our effective tax rate fluctuates from period to period due to changes in the mix of income and losses in jurisdictions with a wide range of tax rates, the effect of acquisitions, changes resulting from the amount of recorded valuation allowance, and permanent differences between GAAP and local tax laws. Refer to "Note 13 – Income Taxes" of the notes to consolidated financial statements in "Part II, Item 8. Financial Statements and Supplementary Data" of this Annual Report for additional information about our income taxes and effective tax rate. RESULTS OF OPERATIONS Results of operations for the years ended December 31, 2025, 2024, and 2023 were as follows: Consolidated Results Year Ended December 31, Percentage of total revenue Increase (decrease) (in thousands) 2025 2024 2023 2025 2024 2023 2025 vs 2024 2024 vs 2023 Revenues, net: Subscription service $ 291,170  $ 207,422  $ 122,597  63.9  % 59.3  % 44.3  % 40.4  % 69.2  % Hardware 106,410  87,040  103,391  23.4  % 24.9  % 37.4  % 22.3  % (15.8) % Professional service 57,967  55,520  50,726  12.7  % 15.9  % 18.3  % 4.4  % 9.5  % Total revenues, net $ 455,547  $ 349,982  $ 276,714  100.0  % 100.0  % 100.0  % 30.2  % 26.5  % Gross margin Subscription service 159,143  110,903  58,862  34.9  % 31.7  % 21.3  % 43.5  % 88.4  % Hardware 24,366  21,117  23,072  5.3  % 6.0  % 8.3  % 15.4  % (8.5) % Professional service 14,517  14,104  7,512  3.2  % 4.0  % 2.7  % 2.9  % 87.8  % Total gross margin 198,026  146,124  89,446  43.5  % 41.8  % 32.3  % 35.5  % 63.4  % Operating expenses: Sales and marketing 48,911  41,708  38,513  10.7  % 11.9  % 13.9  % 17.3  % 8.3  % General and administrative 122,707  108,898  72,139  26.9  % 31.1  % 26.1  % 12.7  % 51.0  % Research and development 81,771  67,258  58,356  18.0  % 19.2  % 21.1  % 21.6  % 15.3  % Amortization of identifiable intangible assets 13,408  8,452  1,858  2.9  % 2.4  % 0.7  % 58.6  % 200 % Adjustment to contingent consideration liability —  (600) (9,200) —  % (0.2) % (3.3) % (100.0) % (93.5) % Gain on insurance proceeds —  (495) (500) —  % (0.1) % (0.2) % (100.0) % (1.0) % Total operating expenses 266,797  225,221  161,166  58.6  % 64.4  % 58.2  % 18.5  % 39.7  % Operating loss (68,771) (79,097) (71,720) (15.1) % (22.6) % (25.9) % (13.1) % 10.3  % Other (expense) income, net (1,118) 1,146  (485) (0.2) % 0.3  % (0.2) % (197.6) % (200)% Loss on extinguishment of debt (5,791) (6,560) (635) (1.3) % (1.9) % (0.2) % (11.7) % 200 % Interest expense, net (6,055) (10,167) (6,931) (1.3) % (2.9) % (2.5) % (40.4) % 46.7  % Loss from continuing operations before income taxes (81,735) (94,678) (79,771) (17.9) % (27.1) % (28.8) % (13.7) % 18.7  %  (Provision for) benefit from income taxes (2,923) 4,768  (1,848) (0.6) % 1.4  % (0.7) % (161.3) % (200)% Net loss from continuing operations $ (84,658) $ (89,910) $ (81,619) (18.6) % (25.7) % (29.5) % (5.8) % 10.2  % Net income from discontinued operations 197  84,923  11,867  —  % 24.3  % 4.3  % (99.8) % 200 % Net loss $ (84,461) $ (4,987) $ (69,752) (18.5) % (1.4) % (25.2) % 200 % (92.9) % Historical results from our Government segment are reported as discontinued operations. Refer to "Note 4 - Discontinued Operations" within "Item 8. Financial Statements and Supplementary Data" for additional information. 28 Table of Contents Revenues, Net Year Ended December 31, Percentage of total revenue Increase (decrease) (in thousands) 2025 2024 2023 2025 2024 2023 2025 vs 2024 2024 vs 2023 Revenues, net: Subscription service $ 291,170  $ 207,422  $ 122,597  63.9  % 59.3  % 44.3  % 40.4  % 69.2  % Hardware 106,410  87,040  103,391  23.4  % 24.9  % 37.4  % 22.3  % (15.8) % Professional service 57,967  55,520  50,726  12.7  % 15.9  % 18.3  % 4.4  % 9.5  % Total revenues, net $ 455,547  $ 349,982  $ 276,714  100.0  % 100.0  % 100.0  % 30.2  % 26.5  % For the Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 Total revenues were $455.5 million for the year ended December 31, 2025, an increase of $105.6 million or 30.2% compared to $350.0 million for the year ended December 31, 2024. Subscription service revenues were $291.2 million for the year ended December 31, 2025, an increase of $83.7 million or 40.4% compared to $207.4 million for the year ended December 31, 2024. The increase was driven by increased Engagement Cloud subscription service revenues of $53.8 million, of which $31.2 million was attributable to inorganic revenue growth due to the inclusion of approximately six additional months of revenue from the Plexure product line and two additional months of revenue from the existing PAR Retail business in the current period, and from customer contracts acquired in the GoSkip Asset Acquisition (now integrated into the PAR Retail product line). The residual increase of $22.6 million from Engagement Cloud subscription services was driven by organic growth in both active sites and average revenue per site through cross-selling initiatives, upselling, and price increases. Operator Cloud subscription service revenues increased $29.9 million, of which $20.3 million was attributable to inorganic revenue growth contributed by the Delaget product line and the inclusion of approximately six additional months of revenue from the TASK product line in the current period. The residual increase of $9.6 million from Operator Cloud subscription services was primarily driven by organic growth in active sites. Hardware revenues were $106.4 million for the year ended December 31, 2025, an increase of $19.4 million or 22.3% compared to $87.0 million for the year ended December 31, 2024. The increase was substantially driven by increased revenues from sales of peripherals (scanners, printers, and components) of $5.0 million, terminals of $4.9 million, kiosks of $2.4 million, kitchen display systems of $2.1 million, and an increase in international sales of $3.4 million. These increases were substantially driven by the timing of tier-one enterprise customer hardware refresh cycles and the onboarding of Operator Cloud customers purchasing hardware. Hardware revenues will continue to be affected by the timing of the aforementioned drivers. Professional service revenues were $58.0 million for the year ended December 31, 2025, an increase of $2.4 million or 4.4% compared to $55.5 million for the year ended December 31, 2024. The increase was substantially driven by a $4.1 million increase in hardware repair services and field operations, partially offset by a $1.6 million decrease in implementation revenues as a result of offering discounts and incentives on SaaS implementations to facilitate the adoption of our recurring subscription service revenue streams. 29 Table of Contents Gross Margin Year Ended December 31, Gross Margin Percentage Increase (decrease) (in thousands) 2025 2024 2023 2025 2024 2023 2025 vs 2024 2024 vs 2023 Gross margin Subscription service $ 159,143  $ 110,903  $ 58,862  54.7  % 53.5  % 48.0  % 120 bps 550 bps Hardware 24,366  21,117  23,072  22.9  % 24.3  % 22.3  % (140) bps 200 bps Professional service 14,517  14,104  7,512  25.0  % 25.4  % 14.8  % (40) bps 1,060 bps Total gross margin $ 198,026  $ 146,124  $ 89,446  43.5  % 41.8  % 32.3  % 170 bps 950 bps For the Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 Total gross margin as a percentage of revenue for the year ended December 31, 2025, increased to 43.5% as compared to 41.8% for the year ended December 31, 2024. Subscription service margin as a percentage of subscription service revenue for the year ended December 31, 2025, increased to 54.7% as compared to 53.5% for the year ended December 31, 2024. The increase was substantially driven by operating efficiencies in hosting and customer support costs relative to the growth in subscription service revenues for both Engagement Cloud and Operator Cloud, as well as improved margin contributions stemming from post-acquisition operations of the Delaget product line and the inclusion of approximately two additional months of PAR Retail product line results in the current period. These improvements were partially offset by an impairment loss recorded in the current period related to the write-off of capitalized software development costs for the PAR Clear product. Hardware margin as a percentage of hardware revenue for the year ended December 31, 2025, decreased to 22.9% as compared to 24.3% for the year ended December 31, 2024. The decrease was primarily driven by increased supply chain costs resulting from recently implemented U.S. tariff policies, partially offset by a year-over-year reduction in compensation expense as we aligned our hardware-related workforce with organizational priorities. The Company began implementing pricing adjustments during the third quarter of 2025 to mitigate the impact of tariffs in future periods. Professional service margin as a percentage of professional service revenue for the year ended December 31, 2025, was relatively unchanged at 25.0% as compared to 25.4% for the year ended December 31, 2024. Sales and Marketing Expenses ("S&M") Year Ended December 31, Percentage of total revenue Increase (decrease) (in thousands) 2025 2024 2023 2025 2024 2023 2025 vs 2024 2024 vs 2023 Sales and marketing $ 48,911  $ 41,708  $ 38,513  10.7  % 11.9  % 13.9  % 17.3  % 8.3  % For the Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 S&M expenses were $48.9 million for the year ended December 31, 2025, an increase of $7.2 million or 17.3% compared to $41.7 million for the year ended December 31, 2024. The increase was substantially driven by a $6.7 million increase in inorganic S&M expense stemming from post-acquisition operations of the Delaget product line and the inclusion of approximately six additional months of TASK Group S&M expense and two additional months of PAR Retail S&M expense in the current period. Organic S&M expense increased by $0.5 million, primarily driven by an increase in commission expense due to year-over-year sales growth. 30 Table of Contents General and Administrative Expenses ("G&A") Year Ended December 31, Percentage of total revenue Increase (decrease) (in thousands) 2025 2024 2023 2025 2024 2023 2025 vs 2024 2024 vs 2023 General and administrative $ 122,707  $ 108,898  $ 72,139  26.9  % 31.1  % 26.1  % 12.7  % 51.0  % For the Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 G&A expenses were $122.7 million for the year ended December 31, 2025, an increase of $13.8 million or 12.7% compared to $108.9 million for the year ended December 31, 2024. The increase was substantially driven by a $10.8 million increase in inorganic G&A expense stemming from post-acquisition operations of the Delaget product line and the inclusion of approximately six additional months of TASK Group G&A expense and two additional months of PAR Retail G&A expense in the current period. The residual $3.0 million increase was primarily driven by certain non-cash or non-recurring expenses consisting of a $4.4 million increase in stock-based compensation expense and a $3.7 million litigation expense in the current period, partially offset by a $4.8 million decrease in costs related to transaction due diligence and integration and a $0.3 million decrease in severance costs related to non-recurring restructuring events. Research and Development Expenses ("R&D") Year Ended December 31, Percentage of total revenue Increase (decrease) (in thousands) 2025 2024 2023 2025 2024 2023 2025 vs 2024 2024 vs 2023 Research and development $ 81,771  $ 67,258  $ 58,356  18.0  % 19.2  % 21.1  % 21.6  % 15.3  % For the Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 R&D expenses were $81.8 million for the year ended December 31, 2025, an increase of $14.5 million or 21.6% compared to $67.3 million for the year ended December 31, 2024. The increase was substantially driven by a $9.5 million increase in inorganic R&D expense stemming from post-acquisition operations of the Delaget product line, the inclusion of approximately six additional months of TASK Group R&D expense and two additional months of PAR Retail R&D expense in the current period, and R&D expense resulting from the integration of assets acquired in the GoSkip Asset Acquisition. Organic R&D expense increased by $5.0 million, primarily driven by an increase in development costs as we continue to invest in improving and diversifying our product and service offerings. Other Operating Expenses: Amortization of Intangible Assets / Contingent Consideration / Insurance Proceeds Year Ended December 31, Percentage of total revenue Increase (decrease) (in thousands) 2025 2024 2023 2025 2024 2023 2025 vs 2024 2024 vs 2023 Amortization of identifiable intangible assets $ 13,408  $ 8,452  $ 1,858  2.9  % 2.4  % 0.7  % 58.6  % 200 % Adjustment to contingent consideration liability $ —  $ (600) $ (9,200) —  % (0.2) % (3.3) % N/A (93.5) % Gain on insurance proceeds $ —  $ (495) $ (500) —  % (0.1) % (0.2) % N/A (1.0) % For the Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 Amortization of identifiable intangible assets was $13.4 million for the year ended December 31, 2025, an increase of $5.0 million as compared to $8.5 million for the year ended December 31, 2024. The increase was driven by an increase in amortizable intangible assets stemming from the Stuzo Acquisition, the TASK Group Acquisition, the Delaget Acquisition, and the GoSkip Asset Acquisition. Included in operating expenses for the year ended December 31, 2024 was a $0.6 million reduction to the 31 Table of Contents fair value of the contingent consideration liability for certain post-closing revenue focused milestones from the MENU Acquisition. There was no comparable adjustment to contingent consideration liability for the year ended December 31, 2025. Included in operating expenses for the year ended December 31, 2024 was $0.5 million in insurance proceeds received from the settlement of a legacy insurance claim. There was no comparable gain for the year ended December 31, 2025. Other (Expense) Income, Net Year Ended December 31, Percentage of total revenue Increase (decrease) (in thousands) 2025 2024 2023 2025 2024 2023 2025 vs 2024 2024 vs 2023 Other (expense) income, net $ (1,118) $ 1,146  $ (485) (0.2) % 0.3  % (0.2) % (197.6) % (200)% For the Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 Other expense, net was $1.1 million for the year ended December 31, 2025, a change of $2.3 million as compared to other income, net of $1.1 million for the year ended December 31, 2024. The change was substantially driven by foreign currency transaction fluctuations, with net foreign currency losses recognized in the current period compared to net gains in the prior period. Loss on Extinguishment of Debt Year Ended December 31, Percentage of total revenue Increase (decrease) (in thousands) 2025 2024 2023 2025 2024 2023 2025 vs 2024 2024 vs 2023 Loss on extinguishment of debt $ (5,791) $ (6,560) $ (635) (1.3) % (1.9) % (0.2) % (11.7) % 200 % For the Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 Loss on extinguishment of debt was $5.8 million for the year ended December 31, 2025 related to the early repayment of the Credit Facility. Loss on extinguishment of debt was $6.6 million for the year ended December 31, 2024 related to the induced conversion of a portion of the 2026 Notes. Interest Expense, Net Year Ended December 31, Percentage of total revenue Increase (decrease) (in thousands) 2025 2024 2023 2025 2024 2023 2025 vs 2024 2024 vs 2023 Interest expense, net $ (6,055) $ (10,167) $ (6,931) (1.3) % (2.9) % (2.5) % (40.4) % 46.7  % For the Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 Interest expense, net was $6.1 million for the year ended December 31, 2025, a decrease of $4.1 million or 40.4% as compared to $10.2 million for the year ended December 31, 2024. The decrease was primarily driven by the replacement of the Credit Facility with the 2030 Notes, which bear a lower interest rate. 32 Table of Contents Taxes Year Ended December 31, Percentage of total revenue Increase (decrease) (in thousands) 2025 2024 2023 2025 2024 2023 2025 vs 2024 2024 vs 2023  (Provision for) benefit from income taxes $ (2,923) $ 4,768  $ (1,848) (0.6) % 1.4  % (0.7) % (161.3) % (200)% For the Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 The provision for income taxes was $2.9 million for the year ended December 31, 2025, a change of $7.7 million as compared to a benefit from income taxes of $4.8 million for the year ended December 31, 2024. The change was primarily due to the absence of the benefit recorded in the prior year, resulting from a reduction of the Company's valuation allowance following the establishment of deferred tax liabilities in connection with the Stuzo Acquisition and Delaget Acquisition. The provision recorded during the year ended December 31, 2025 primarily related to foreign income tax expense. Net Income from Discontinued Operations Year Ended December 31, Percentage of total revenue Increase (decrease) (in thousands) 2025 2024 2023 2025 2024 2023 2025 vs 2024 2024 vs 2023 Net income from discontinued operations $ 197  $ 84,923  $ 11,867  —  % 24.3  % 4.3  % (99.8) % 200 % For the Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 Net income from discontinued operations was $0.2 million for the year ended December 31, 2025, a decrease of $84.7 million as compared to $84.9 million for the year ended December 31, 2024. During the year ended December 31, 2025, a $0.2 million gain from the divestiture of RRC was recognized as a result of a favorable net working capital settlement. During the year ended December 31, 2024, an $81.2 million gain on sale of PGSC and RRC was recognized. The residual amount represents PGSC and RRC operating income, offset by a provision for income taxes relating to the gain on sale of PGSC and RRC. Key Performance Indicators and Non-GAAP Financial Measures: We monitor certain key performance indicators and non-GAAP financial measures in the evaluation and management of our business; certain key performance indicators and non-GAAP financial measures are provided in this Annual Report because we believe they are useful in facilitating period-to-period comparisons of our business performance. Key performance indicators and non-GAAP financial measures do not reflect and should be viewed independently of our financial performance determined in accordance with GAAP. Key performance indicators and non-GAAP financial measures are not forecasts or indicators of future or expected results and should not have undue reliance placed upon them by investors. Key Performance Indicators Within this Annual Report, the Company makes reference to annual recurring revenue, or ARR, and active sites, which are both key performance indicators. The Company utilizes ARR and active sites as key performance indicators of the scale of our subscription services for both new and existing customers. ARR is the annualized revenue from our subscription services, which includes subscription fees for our SaaS solutions and related support, managed platform development services, and transaction-based fees for payment processing services. We generally calculate ARR by annualizing the monthly recurring revenue for all active sites as of the last day of each month for the respective reporting period. ARR is an operating measure, it does not reflect our revenue determined in accordance with GAAP, and ARR should be viewed independently of, and not combined with or substituted for, our revenue and other financial information determined in accordance with GAAP. Further, ARR is not a forecast of future revenue and investors should not place undue reliance on ARR as an indicator of our future or expected results. Our reported ARR is based on a constant currency, using the exchange rates established at the beginning of the year and consistently applied throughout the period and to comparative 33 Table of Contents periods presented. The table below presents our ARR on a constant currency basis, calculated using the exchange rates set at the beginning of 2025. Using the exchange rates established during the prior period, Engagement Cloud ARR and Operator Cloud ARR as of December 31, 2024 were $2.9 million and $0.6 million higher, respectively, than the constant currency ARR reported below. There was no impact to ARR as of December 31, 2023 as the exchange rate effects only began with the TASK Group Acquisition in 2024. Active sites represent locations active on our subscription services as of the last day of the respective reporting period. Our key performance indicators ARR and active sites are presented as two subscription service product lines: •Engagement Cloud consisting of PAR Engagement (Punchh and PAR Ordering), PAR Retail (including GoSkip), and Plexure product offerings. •Operator Cloud consisting of PAR POS, PAR Pay, PAR OPS (Data Central and Delaget) and TASK product offerings. Annual Recurring Revenue As of December 31, Increase (decrease) (in thousands) 2025 2024 2023 2025 vs 2024 2024 vs 2023 Engagement Cloud: Organic $ 183,311  $ 156,248  $ 63,784  17.3  % 145.0  % Inorganic* 2,100  —  —  N/A N/A Total Engagement Cloud 185,411  156,248  63,784  18.7  % 145.0  % Operator Cloud: Organic 129,964  116,224  73,119  11.8  % 59.0  % Total Operator Cloud 129,964  116,224  73,119  11.8  % 59.0  % Total $ 315,375  $ 272,472  $ 136,903  15.7  % 99.0  % *Inorganic Engagement Cloud ARR represents GoSkip ARR only as of December 31, 2025. Revaluing our ending ARR as of December 31, 2025 using exchange rates determined at the beginning of 2026, our Engagement Cloud ARR would be $186.7 million and Operator Cloud ARR would be $130.5 million. Active Sites Year Ended December 31, Increase (decrease) (in thousands) 2025 2024 2023 2025 vs 2024 2024 vs 2023 Engagement Cloud: Organic 121.2  119.7  70.8  1.3  % 68.9  % Inorganic* 0.6  —  —  N/A N/A Total Engagement Cloud 121.8  119.7  70.8  1.8  % 68.9  % Operator Cloud: Organic 60.1  54.8  25.3  9.8  % 116.4  % Total Operator Cloud 60.1  54.8  25.3  9.8  % 116.4  % *Inorganic Engagement Cloud active sites includes GoSkip active sites only as of December 31, 2025. 34 Table of Contents Non-GAAP Financial Measures In addition to disclosing financial results in accordance with GAAP, this Annual Report contains references to the non-GAAP financial measures below. We believe these non-GAAP financial measures provide investors with useful supplemental information about our operating performance, enable comparison of financial trends and results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business and measuring our performance. Our non-GAAP financial measures reflect adjustments based on one or more of the following items below. The income tax effect of the below adjustments, with the exception of non-recurring income taxes, were not tax-effected due to the valuation allowance on all of our net deferred tax assets. Our non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations from these results should be carefully evaluated. Additionally, these measures may not be comparable to similarly titled measures disclosed by other companies. Non-GAAP Measure or Adjustment Definition Usefulness to management and investors Non-GAAP subscription service gross margin percentage Represents subscription service gross margin percentage adjusted to exclude amortization from acquired and internally developed software, stock-based compensation, severance, and impairment of capitalized software development costs. We believe that non-GAAP subscription service gross margin percentage and adjusted EBITDA provide useful perspectives with respect to the Company's core operating performance and ongoing cash earnings by adjusting for certain non-cash and non-recurring charges that may not be indicative of our financial performance. Adjusted EBITDA Represents net loss before income taxes, interest expense, and depreciation and amortization adjusted to exclude discontinued operations, stock-based compensation, contingent consideration, transaction costs, gain on insurance proceeds, severance, impairment loss, litigation expense, loss on extinguishment of debt, and other expense (income), net. Non-GAAP diluted net income (loss) per share Represents net loss per share excluding amortization of acquired intangible assets, non-recurring income taxes, non-cash interest, discontinued operations, stock-based compensation, contingent consideration, transaction costs, gain on insurance proceeds, severance, impairment loss, litigation expense, loss on extinguishment of debt, and other expense (income), net. We believe that adjusting our diluted net loss per share to remove non-cash and non-recurring charges provides a useful perspective with respect to the Company's operating performance as well as comparisons to past and competitor operating results. Stock-based compensation Consists of non-cash charges related to our employee equity incentive plans. We exclude stock-based compensation because management does not view these non-cash charges as part of our core operating performance. This adjustment facilitates a useful evaluation of our current operating performance as well as comparisons to past and competitor operating results. Contingent consideration Adjustment reflects a non-cash reduction to the fair market value of the contingent consideration liability related to the MENU Acquisition. We exclude changes to the fair market value of our contingent consideration liability because management does not view these non-cash, non-recurring charges as part of our core operating performance. This adjustment facilitates a useful evaluation of our current operating performance as well as comparisons to past and competitor operating results. 35 Table of Contents Non-GAAP Measure or Adjustment Definition Usefulness to management and investors Transaction costs Adjustment reflects non-recurring professional fees incurred in transaction due diligence and integration, including costs incurred in the acquisitions of Stuzo, TASK Group, and Delaget. We exclude professional fees incurred in corporate development and integration because management does not view these non-recurring charges, which are inconsistent in size and are significantly impacted by the timing and valuation of our transactions, as part of our core operating performance. This adjustment facilitates a useful evaluation of our current operating performance, comparisons to past and competitor operating results, and additional means to evaluate expense trends. Gain on insurance proceeds Adjustment reflects the gain on insurance proceeds due to the settlement of legacy claims. We exclude these non-recurring adjustments because management does not view these costs as part of our core operating performance. These adjustments facilitate a useful evaluation of our current operating performance as well as comparisons to past and competitor operating results. Severance Adjustment reflects severance tied to non-recurring restructuring events included in cost of sales, sales and marketing expense, general and administrative expense, and research and development expense. Litigation expense Adjustment reflects non-recurring legal fees incurred in connection with certain litigation matters and the release of a loss contingency and settlement expenses for certain legal matters. Loss on extinguishment of debt Adjustment reflects loss on extinguishment of debt related to the conversion of the 2024 Notes and a portion of the 2026 Notes, and related to the early repayment of the Credit Facility. Discontinued operations Adjustment reflects income from discontinued operations related to the divestiture of our Government segment. Impairment loss Adjustment reflects impairment loss related to the discontinuance of the Brink POS trademark and the write-off of capitalized software development costs related to the PAR Clear product. Other expense (income), net Adjustment reflects foreign currency transaction gains and losses and other non-recurring income and expenses recorded in other (expense) income, net in the accompanying statements of operations. Non-recurring income taxes Adjustment reflects a partial release of our deferred tax asset valuation allowance resulting from the Stuzo Acquisition and Delaget Acquisition. We exclude these non-cash and non-recurring adjustments for purposes of calculating non-GAAP diluted net income (loss) per share because management does not view these costs as part of our core operating performance. These adjustments facilitate a useful evaluation of our current operating performance, comparisons to past and competitor operating results, and additional means to evaluate expense trends. Non-cash interest Adjustment reflects non-cash amortization of issuance costs and discount related to the Company's long-term debt. Acquired intangible assets amortization Adjustment reflects amortization expense of acquired developed technology included within cost of sales and amortization expense of other acquired intangible assets. 36 Table of Contents The tables below provide reconciliations between net loss and adjusted EBITDA, diluted net loss per share and non-GAAP diluted net income (loss) per share, and subscription service gross margin percentage and non-GAAP subscription service gross margin percentage. Amounts presented in the reconciliations and other tables presented herein may not sum due to rounding. (in thousands) Year Ended December 31, Reconciliation of Net Loss to Adjusted EBITDA 2025 2024 2023 Net loss $ (84,461) $ (4,987) $ (69,752) Discontinued operations (197) (84,923) (11,867) Net loss from continuing operations (84,658) (89,910) (81,619) Provision for (benefit from) income taxes 2,923  (4,768) 1,848  Interest expense, net 6,055  10,167  6,931  Depreciation and amortization 49,018  37,907  27,014  Stock-based compensation 30,645  24,487  14,291  Contingent consideration —  (600) (9,200) Litigation expense 3,749  —  (808) Transaction costs 3,682  8,454  2,273  Gain on insurance proceeds —  (495) (500) Severance 1,089  2,769  253  Loss on extinguishment of debt 5,791  6,560  635  Impairment loss 3,555  225  —  Other expense (income), net 1,118  (1,146) 485  Adjusted EBITDA $ 22,967  $ (6,350) $ (38,397) (in thousands, except per share amounts) Year Ended December 31, Reconciliation between GAAP and Non-GAAP diluted net income (loss) per share 2025 2024 2023 Diluted net loss per share $ (2.09) $ (0.14) $ (2.53) Discontinued operations —  (2.49) (0.43) Diluted net loss per share from continuing operations (2.09) (2.63) (2.96) Non-recurring income taxes —  (0.19) —  Non-cash interest 0.06  0.07  0.08  Acquired intangible assets amortization 0.96  0.84  0.66  Stock-based compensation 0.76  0.72  0.52  Contingent consideration —  (0.02) (0.33) Litigation expense 0.09  —  (0.03) Transaction costs 0.09  0.25  0.08  Gain on insurance proceeds —  (0.01) (0.02) Severance 0.03  0.08  0.01  Loss on extinguishment of debt 0.14  0.19  0.02  Impairment loss 0.09  0.01  —  Other expense (income), net 0.03  (0.03) 0.02  Non-GAAP diluted net income (loss) per share $ 0.15  $ (0.73) $ (1.96) Diluted weighted average shares outstanding 40,473  34,155  27,552  37 Table of Contents (in thousands) Year Ended December 31, Reconciliation between GAAP and Non-GAAP Subscription Service Gross Margin Percentage 2025 2024 2023 Subscription Service Gross Margin Percentage 54.7  % 53.5  % 48.0  % Subscription Service Gross Margin $ 159,143  $ 110,903  $ 58,862  Depreciation and amortization 31,115  25,312  22,373  Stock-based compensation 628  282  317  Severance —  152  —  Impairment loss 3,555  —  —  Non-GAAP Subscription Service Gross Margin $ 194,441  $ 136,649  $ 81,552  Non-GAAP Subscription Service Gross Margin Percentage 66.8  % 65.9  % 66.4  % LIQUIDITY AND CAPITAL RESOURCES Our primary sources of liquidity are cash and cash equivalents. As of December 31, 2025, we had cash and cash equivalents of $79.6 million. Cash and cash equivalents consist of highly liquid investments with maturities of 90 days or less, including money market funds. Cash used in operating activities was $27.2 million for the year ended December 31, 2025, compared to $25.2 million for the year ended December 31, 2024. The increase in cash used in operating activities of $1.9 million was due to additional net working capital requirements substantially driven by an increase in accounts receivable resulting from revenue growth. Cash used in investing activities was $13.1 million for the year ended December 31, 2025, compared to $180.1 million for the year ended December 31, 2024. Cash used in investing activities for the year ended December 31, 2025 included $4.3 million of cash consideration paid in connection with the GoSkip Asset Acquisition, capital expenditures of $3.3 million for fixed assets, and capital expenditures of $5.6 million for developed technology costs associated with our software platforms. The greater amount of cash used in investing activities during the year ended December 31, 2024 was largely driven by $309.4 million of cash consideration paid in connection with the Stuzo Acquisition, the TASK Group Acquisition, and the Delaget Acquisition (net of cash acquired), partially offset by $96.1 million of cash consideration received in connection with the disposition of PGSC and RRC and $36.7 million of proceeds from net sales of short-term held-to-maturity investments. Cash provided by financing activities was $12.3 million for the year ended December 31, 2025, compared to $278.5 million for the year ended December 31, 2024. Cash provided by financing activities during the year ended December 31, 2025 primarily consisted of the net proceeds from the sale of the 2030 Notes of $111.1 million (net of issuance costs), partially offset by the repayment in full of $93.6 million principal amount outstanding under the Credit Facility plus accrued interest and prepayment premium. Cash provided by financing activities during the year ended December 31, 2024 primarily consisted of a private placement of common stock of $194.5 million (net of issuance costs) and $87.3 million (net of issuance costs) from the Credit Facility. We do not have any off-balance sheet arrangements or obligations. We expect our available cash and cash equivalents will be sufficient to meet our operating needs for at least the next 12 months. Over the next 12 months our total contractual obligations are $77.2 million, consisting of purchase commitments for normal operations (purchase of inventory, software licensing, use of external labor, and third-party cloud services) of $48.6 million, interest payments of $6.1 million and principal payments of $20.0 million related to long-term debt, and facility lease obligations of $2.4 million. We expect to fund such commitments with cash provided by operating activities and our sources of liquidity. Our non-current contractual obligations are $413.1 million, consisting of purchase commitments for normal operations (purchase of inventory, software licensing, use of external labor, and third-party cloud services) of $16.7 million, interest payments of $9.1 million and principal payments of $380.0 million related to long-term debt, and facility leases of $7.4 million. Refer to "Note 5 – Leases" and “Note 10 – Debt” of the notes to consolidated financial statements in "Part II, Item 8. Financial Statements and Supplementary Data" of this Annual Report for additional information. We expect to fund such commitments with cash provided by operating activities, our sources of liquidity, and if necessary, equity, equity-linked, or debt financing arrangements. 38 Table of Contents After period end, the Company acquired approximately $17.1 million aggregate principal amount of its remaining outstanding 2026 Notes (the "Additional Exchanged Notes") in exchange for 485,186 shares of the Company's common stock, plus approximately $134,000 in cash for accrued and unpaid interest on the Additional Exchanged Notes to, but excluding, the closing date (the "Additional Notes Exchange"). Following the Additional Notes Exchange, an aggregate of approximately $2.9 million principal amount of the 2026 Notes remained outstanding. Refer to "Note 17 – Subsequent Events" of the notes to consolidated financial statements in "Part II, Item 8. Financial Statements and Supplementary Data" of this Annual Report for additional information. Our actual cash needs will depend on many factors, including our rate of revenue growth, growth of our SaaS revenues, the timing and extent of spending to support our product development and acquisition integration efforts, the timing of introductions of new products and enhancements to existing products, market acceptance of our products, and the factors described above in Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Annual Report and our other filings with the SEC. From time to time, we may seek to raise additional capital through equity, equity-linked, and debt financing arrangements. In addition, our board of directors and management regularly evaluate our business, strategy, and financial plans and prospects. As part of this evaluation, the board of directors and management periodically consider strategic alternatives to maximize value for our shareholders, including strategic transactions such as an acquisition, or a sale or spin-off of non-strategic company assets or businesses. We cannot provide assurance that any additional financing or strategic alternatives will be available to us on acceptable terms or at all. CRITICAL ACCOUNTING POLICIES AND ESTIMATES Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which requires the use of estimates, assumptions, judgments, and subjective interpretations of accounting principles that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosures. We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently applied. Valuations based on estimates are reviewed for reasonableness and adequacy on a consistent basis. However, because these estimates are inherently uncertain, actual results could differ. Our estimates are also subject to uncertainties, including those associated with market conditions, risks, and trends. Refer to "Item 1A. Risk Factors" of this Annual Report for additional information. The accounting policies and estimates summarized below are those that we consider critical, due to the significant judgments and assumptions involved and their potential impact on our financial condition and results of operations. Refer to “Note 1 – Summary of Business and Significant Accounting Policies” of the notes to consolidated financial statements in "Part II, Item 8. Financial Statements and Supplementary Data" of this Annual Report for additional information regarding our accounting policies and other disclosures required by GAAP. Revenue Recognition The Company's revenue is derived from three types of revenue: hardware sales, subscription services, and professional services, which may be sold separately or bundled together in a single contract. ASC Topic 606, Revenue from Contracts with Customers, requires the Company to distinguish and measure performance obligations under customer contracts. Contract consideration is allocated to all performance obligations within the arrangement or contract. Assessing whether products and services constitute distinct performance obligations that should be recognized separately or combined may require judgment. Performance obligations that are determined not to be distinct are combined with other performance obligations until the combined unit is determined to be distinct and that combined unit is then recognized as revenue over time or at a point in time depending on when control is transferred. The Company evaluated the potential performance obligations and evaluated whether each performance obligation met the ASC Topic 606 criteria to be considered a distinct performance obligation. The primary method used to estimate a stand-alone selling price is the price that the Company charges for the particular good or service sold by the Company separately under similar circumstances to similar customers. Assessing the stand-alone selling price for each distinct performance obligation may involve significant judgment. Key pricing factors taken into consideration include our discounting policies, transaction size and volume, target customer demographic, price lists, as well as both historical and current sales and contract prices. 39 Table of Contents For certain arrangements, particularly those involving managed platform development services and transaction-based payment processing, we must determine whether we are acting as a principal or an agent. This assessment is based on our level of control over the services before they are transferred to the customer, our pricing discretion, and our responsibility for fulfillment. Where we conclude that we are the principal, we recognize revenue on a gross basis; otherwise, revenue is recorded net of certain pass-through costs. Accounts Receivable – Current Expected Credit Losses The Company maintains a provision for accounts receivables that it does not expect to collect. In accordance with ASC Topic 326, Financial Instruments - Credit Losses, the Company accrues its estimated losses from uncollectible accounts receivable to the provision based upon recent historical experience, the length of time the receivable has been outstanding, other specific information as it becomes available, and reasonable and supportable forecasts not already reflected in the historical loss information. Provisions for current expected credit losses are charged to current operating expenses. Actual losses are charged against the provision when incurred. Inventories The Company’s inventories are valued at the lower of cost and net realizable value, with cost determined using the weighted average cost method. The Company uses certain estimates and judgments and considers several factors including hardware demand, changes in customer requirements, and changes in technology to provide for excess and obsolescence reserves to properly value inventory. Capitalized Software Development Costs We capitalize certain costs related to the development of our platform and other software applications for internal use in accordance with ASC Topic 350-40, Intangibles - Goodwill and Other - Internal - Use Software. We begin to capitalize our costs to develop software when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed and the software will be used as intended. We stop capitalizing these costs when the software is substantially complete and ready for its intended use, including the completion of all significant testing. These costs are amortized on a straight-line basis over the estimated useful life of the related asset, generally estimated to be three to seven years. We also capitalize costs related to specific upgrades and enhancements when it is probable the expenditure will result in additional functionality and expense costs incurred for maintenance and minor upgrades and enhancements. Costs incurred prior to meeting these criteria together with costs incurred for training and maintenance are expensed as incurred and recorded within research and development expenses in our consolidated statements of operations. We exercise judgment in determining the point at which various projects may be capitalized, in assessing the ongoing value of the capitalized costs and in determining the estimated useful lives over which the costs are amortized. To the extent that we change the manner in which we develop and test new features and functionalities related to our platform, assess the ongoing value of capitalized assets or determine the estimated useful lives over which the costs are amortized, the amount of internal-use software development costs we capitalize and amortize could change in future periods. Accounting for Business Combinations We account for acquired businesses in accordance with ASC Topic 805, Business Combinations, which requires that assets acquired and liabilities assumed be recorded at their respective fair values on the date of acquisition. The fair value of the consideration paid is assigned to the underlying net assets of the acquired business based on their respective fair values. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded to goodwill. Intangible assets are amortized over the expected life of the asset. Fair value determinations and useful life estimates are based on, among other factors, estimates of expected future cash flows from revenues of the intangible assets acquired, estimates of appropriate discount rates used to present value expected future cash flows, estimated useful lives of the intangible assets acquired and other factors. Although we believe the assumptions and estimates we have made have been reasonable and appropriate, they are based, in part, on historical experience, information obtained from the management of the acquired companies, and future expectations. For these and other reasons, actual results may vary significantly from estimated results. 40 Table of Contents Discontinued Operations In determining whether a group of assets disposed of (or is to be disposed of) should be presented as a discontinued operation, the Company analyzes whether the group of assets disposed of represented a component of the entity; that is, whether it had historic operations and cash flows that were discrete both operationally and for financial reporting purposes. In addition, the Company considers whether the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results. The assets and liabilities of a discontinued operation, other than goodwill, are measured at the lower of carrying amount or fair value, less cost to sell. When a portion of a reporting unit that constitutes a business is to be disposed of, the goodwill associated with that business is included in the carrying amount of the business based on the relative fair values of the business to be disposed of and the portion of the reporting unit that will be retained. Interest is allocated to discontinued operations if the interest is directly attributable to the discontinued operations or is interest on debt that is required to be repaid as a result of the disposal. Stock-Based Compensation The Company records stock-based compensation for employee stock options, restricted stock awards, and restricted stock units using a straight-line method over the vesting period, based on the fair value at the grant date. The fair value of stock options is determined using the Black-Scholes valuation model, which incorporates assumptions as to the fair value of stock price, volatility, the expected life of options or awards, a risk-free interest rate, and dividend yield. In valuing stock options, significant judgment is required in determining the expected volatility of the Company's common stock and the expected life that individuals will hold their stock options prior to exercising. Expected volatility is based on the historical and implied volatility of the Company's common stock. The expected life of stock options is derived from the historical actual term of stock option grants and an estimate of future exercises during the remaining contractual period of the stock option. While volatility and estimated life are assumptions that do not bear the risk of change subsequent to the grant date of stock options, these assumptions may be difficult to measure, as they represent future expectations based on historical experience. Further, expected volatility and the expected life of stock options may change in the future, which could substantially change the grant-date fair value of future awards and, ultimately, the expense the Company records. Impairment of Long-Lived Assets The Company evaluates the accounting and reporting for the impairment of long-lived assets in accordance with the reporting requirements of ASC Topic 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets. The Company will recognize impairment of long-lived assets or asset groups if the net book value of such assets exceeds the estimated future undiscounted cash flows attributable to such assets. If the carrying value of a long-lived asset or asset group is considered impaired, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset or asset group for assets to be held and used, or the amount by which the carrying value exceeds the fair market value less cost to sell for assets to be sold. Goodwill Fair values of the reporting unit are estimated using a weighted methodology considering the output from both the income and market approaches. The income approach incorporates the use of a discounted cash flow (DCF) analysis. A number of significant assumptions and estimates are involved in the application of the DCF model to forecast operating cash flows, including revenue growth, operating income margin and discount rate. The market approach incorporates the use of the quoted price and public company methods utilizing public market data for our company and comparable companies. Under GAAP, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of the reporting unit is greater than its carrying amount. If, after assessing the totality of events or circumstances, the Company determines it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, there is no need to perform any further testing. However, if the Company concludes otherwise, then it is required to perform a quantitative impairment test by calculating the fair value of the reporting unit and comparing the fair value with the carrying amount of the reporting unit. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded based on that difference. 41 Table of Contents Recent Accounting Pronouncements Not Yet Adopted Refer to “Note 1 – Summary of Business and Significant Accounting Policies” of the notes to consolidated financial statements in "Part II, Item 8. Financial Statements and Supplementary Data" of this Annual Report for details.