PAR Technology 3Q26 Review: Net New Organic Intrigues; Maintain Neutral; PT to $19/sh ($18/sh prev)

PAR Technology delivered a beat-and-raise quarter, with the highlight being net new organic ARR. Ending ARR of $354.5M (+18% Y/Y) grew $16.5M Q/Q, all of it organic. Under PAR's methodology, inorganic ARR (Bridg) is fixed at its $14.4M value as of the March 24 acquisition date. Organic ARR grew 13.3% Y/Y, and organic net adds scaled from about -$1.5M in 1Q to about $8M in 2Q and $16.5M in 3Q. Growth is primarily coming from ARPU, not volume, as product integration makes bundles easier to sell and operators facing high rates, inflation and labor pressure consolidate vendors onto one platform. We reflect the solid results in our model, maintaining our Neutral rating and raising our PT to $19/sh ($18/sh previously). Management sees a strong first half of 2027 and room for organic ARR growth to improve from roughly 13%; Burger King POS is largely complete by year-end, Papa John's adds about $14M of ARR through end-2027, while Bridg laps in 1Q27 and hardware normalizes from about $133M in 2