Analysts Expect Breakeven For PAR Technology Corporation (NYSE:PAR) Before Long

We feel now is a pretty good time to analyse PAR Technology Corporation's (NYSE:PAR) business as it appears the company may be on the cusp of a considerable accomplishment. PAR Technology Corporation, together with its subsidiaries, provides omnichannel cloud-based hardware and software solutions to the restaurant and retail industries worldwide. The US$2.7b market-cap company announced a latest loss of US$90m on 31 December 2024 for its most recent financial year result. Many investors are wondering about the rate at which PAR Technology will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for PAR Technology

PAR Technology is bordering on breakeven, according to the 6 American Electronic analysts. They expect the company to post a final loss in 2026, before turning a profit of US$28m in 2027. So, the company is predicted to breakeven approximately 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 77%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving PAR Technology's growth isn’t the focus of this broad overview, but, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one issue worth mentioning. PAR Technology currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in PAR Technology's case is 42%. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on PAR Technology, so if you are interested in understanding the company at a deeper level, take a look at PAR Technology's company page on Simply Wall St. We've also put together a list of important factors you should look at:

1. Valuation: What is PAR Technology worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether PAR Technology is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on PAR Technology’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.