PAR Technology (PAR) Traded Lower Due to a Drop in Annual Recurring Revenue

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 2.26% (gross) and 2.01% (net), compared to the Russell 2000 Growth Index’s 12.19% return. During the quarter, all asset classes except fixed income outside the U.S. posted positive returns. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, TimesSquare Capital U.S. Small Cap Growth Strategy 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 1.86%, and its shares lost 47.80% of their value over the last 52 weeks. On January 5, 2026, PAR Technology Corporation (NYSE:PAR) stock closed at $36.20 per share, with a market capitalization of $1.469 billion.

TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding PAR Technology Corporation (NYSE:PAR) in its third quarter 2025 investor letter:

“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that are growing their shares of corporate IT budgets. Recently, short-term market sentiment penalized the secular growth area of software in favor of either cyclical semiconductors or anything related to the future possibility of quantum computing. In this environment, our general preference for application software companies showing steady demand became a headwind to our relative performance. Another challenge was PAR Technology Corporation (NYSE:PAR) and its -43% showing. A designer of software and hardware for the hospitality industry, PAR reported revenue and earnings that were in line with expectations, although its rate of annual recurring revenue slipped. This also seemed to be a case of clients cautious in their economic outlook and moving slower to sign or implement new contracts with PAR. The price change seemed like an overreaction and the company was near to closing several deals, though we want to see how that progresses in future quarters.”

In another article, we covered PAR Technology Corporation (NYSE:PAR) and shared Wasatch Micro-Cap 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.