PAR Technology Corp (PAR) Offered Cautious Guidance Despite Clear Positives

Laughing Water Capital, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter of 2025, Laughing Water Capital declined approximately -1% net of all expenses, bringing year-to-date returns to approximately -2.7%. The SP500TR and R2000 returned 12.4% and 8.1% respectively, in the quarter, and 14.8% and 10.4%, respectively, for YTD. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Laughing Water Capital highlighted stocks such as PAR Technology Corporation (NYSE:PAR). PAR Technology Corporation (NYSE:PAR) offers omnichannel cloud-based hardware and software solutions to the restaurant and retail industries. The one-month return of PAR Technology Corporation (NYSE:PAR) was -6.87%, and its shares lost 41.52% of their value over the last 52 weeks. On October 29, 2025, PAR Technology Corporation (NYSE:PAR) stock closed at $35.09 per share, with a market capitalization of $1.424 billion.

Laughing Water Capital stated the following regarding PAR Technology Corporation (NYSE:PAR) in its third quarter 2025 investor letter:

“PAR Technology Corporation (NYSE:PAR) – PAR is the leading player in enterprise software for enterprise scale quick serve restaurants. In the quarter the company reported a record backlog, noted that customer win rates remain very high, noted that multi-product wins are accelerating, indicated that 2H’25 should be very strong, and indicated they are pursuing 3 mega-tier one deals, 2 of which they hope to hear on by YE’25, and one that is likely Q1’26.

In addition to these clear positives, the company also offered cautious guidance around FY’25 revenue due to a combination of customers delaying the rollout of already contracted business due to macro uncertainty, and an internal decision to delay some business in order to divert resources toward winning the previously mentioned business with mega-tier one customers. None of this business has been lost. It has only been pushed out a bit, but the net of these long-term positives and near-term negatives has been a stock that declined more than 40%.

In my view, if the thesis is that PAR has the best product suite in a world where restaurants are increasingly software-centric, an easily explained temporary delay in revenue should not lead to blood in the streets. It is not as if a new competitor with a better product has emerged. It is not as if restaurant owners have decided that software is no longer the future. The thesis is still on track, and I expect that in the coming months PAR will win at least one of the mega-deals they are currently pursuing, further validating the thesis.”

In another article, we covered PAR Technology Corporation (NYSE:PAR) and shared Bristlemoon Global Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.