Good day, and thank you for standing by. Welcome to the PAR Technology Corporation first quarter financial results. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question during this session, you will need to press star 11 on your telephone. You would then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Chris Byrnes. Senior Vice President, Investor Relations and Business Development. Please go ahead. Thanks, Antoine.

Good afternoon, everyone, and thank you for joining us today for PAR Technology Corporation’s 2026 First Quarter Financial Results Call. Earlier today, we released our financial results. The earnings release is available on the Investor Relations page of our website at partech.com, where you can also find the Q1 financials presentation as well as in our related Form 8-Ks furnished to the SEC. Before we begin, please be advised that our remarks today will contain forward-looking statements. These forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For additional information on these factors, again, refer to our earnings release and our other reports filed with the SEC. In addition, we will be discussing or providing certain non-GAAP financial measures today, which we believe will provide additional clarity regarding our ongoing performance. For a full reconciliation of the non-GAAP financial measures discussed in this call to the most comparable GAAP measure in accordance with SEC regulations, again, see our press release furnished as an exhibit to our Form 8-Ks filed this afternoon and our supplemental materials available on our website. Joining me on the call today is PAR Technology Corporation’s CEO, Savneet Singh, and Bryan A. Menar, PAR Technology Corporation’s Chief Financial Officer. I would now like to turn the call over to Savneet for the formal remarks portion of the call which will be followed by general Q&A. Savneet?

Thank you, Mr. Byrnes. I would like to start today with a core conviction. PAR Technology Corporation has fundamentally been miscast in the public market. Historically, we have been heads down, but starting today, for the first time, we will be providing additional forward-looking financial guidance along with our previously stated mid-teens ARR growth target, because we believe in the power of what we have built and how we are building to drive true shareholder value. Today, you will see that we are not focused on sleight-of-hand announcements, financial engineering, or AI-washing results. We are focused on execution, focused on the dollars and cents that are going to drive real value to our investors and to our customers. We fundamentally believe that our business is in an amazing position to capitalize on our future AI vision of PAR Intelligence. We have a strong foundation shielded from perceived AI market incursions, and the pipeline we have ahead of us is going to drive material upside to our financials. Now turning to our Q1 performance. Q1 marks a good start to the year, and a purposeful shift in PAR Technology Corporation’s operating strategy and execution. Our goals are clear: one, materially improve PAR Technology Corporation’s profitability via sustained operating leverage, and two, utilize PAR Intelligence to expand TAM and long-term growth. In Q1, we scaled our AI-first restaurant and retail platform, eliminated structural cost inefficiency, expanded recurring revenue, and delivered meaningful year-over-year improvement in profitability. Total revenue for the quarter was $124 million, representing 19% year-over-year growth driven primarily by strength across subscription services and hardware. Importantly, we improved adjusted EBITDA by nearly 2x year over year, reflecting tighter cost discipline and stronger operating leverage. This theme will continue throughout the year. OpEx will decline sequentially every quarter in 2026 while ARR, gross profit, and EBITDA all continue to grow simultaneously. In Q1, ARR reached $330 million, up 16% year over year with organic growth of over 11%. This performance reinforces the durability of our SaaS-based model and the increasing strategic value customers place on our omnichannel data-driven platform. Importantly, we continue to grow year over year while managing out the low-priced customers we referenced last quarter. While gross margin was impacted by hardware-related tariff and cost pressure, we are making real progress expanding profitability. Further, we are seeing improved success employing AI across G&A functions. OpEx as a percentage of revenue declined from 50% to 43% year over year, with Sales and Marketing at 9%, R&D at 16%, and G&A at 18%, respectively. As we scale and improve our fundamentals, our progress with AI has become an increasingly important driver of momentum, especially on the product side. PAR Technology Corporation serves multi-unit restaurant and retail operators competing in complex, margin-sensitive environments, and that is exactly where our Better Together and PAR Intelligence strategy is focused. Driving our competitive wins is not any single feature. It is the combined value of a core platform with expanded feature depth via Better Together integrations, as well as the premise of PAR Intelligence functioning as an agent harness that drives profitable actions. Together, we see our PAR Intelligence AI vision as an amplifier of our platform and future growth. In particular, we are more bullish than ever in our ability to drive sustained profitable growth through AI. Brands moving away from legacy solutions consistently tell us the same thing: fragmented technology stacks slow them down. When your core data lives in one platform like PAR Technology Corporation’s, you unlock the ability to deploy agents across the entire tech stack, not just with a single siloed product. Our multi-product enterprise deals are precisely possible because of the binding power of a modern point of sale tying together all the facets of the data tech stack. That is a structural advantage. Context equity is the cornerstone of winning in the AI era. Customers are signing near decade-long multi-product deals with PAR Technology Corporation precisely because they know the difference between an agentic platform based on deep workflows and shallow dashboarding. We believe these long-term contracts are a key proof point that we are becoming the trusted AI partner for our category. Let us dig into the Q1 performance in detail. On the Operator Cloud side, momentum was led by PAR POS and Data Central, with continued execution against the Burger King rollout and wins such as &pizza, Tijuana Flats, Charcoal Japan, and Pizza Factory. The PAR POS Burger King implementation is running at a sustained pace of over 400 sites per month, and we have a strong plan into more than 3,000 additional sites that will go live this year. We continue to work in lockstep with our most recent tier-one win, Papa John’s, as we kick off their dual POS and Data Central implementation plan late this year for all of their U.S.-based restaurants, and the full system will be live by 2027. We are seeing exciting pipeline traction in the pizza vertical, with this sector poised to be disrupted as the market is fragmented, lacking new entrants, and primarily run off legacy, custom-built tech stacks. PAR POS is the foundation of our platform, and we are quickly progressing with agentic OS capabilities. Across the portfolio, attach rates are the story, as nearly 90% of new Operator deals in Q1 were multi-product, yet the average customer still uses fewer than two of our core software solutions. PAR Technology Corporation is not reliant on home run tier-one deals to meaningfully drive growth. The continued expansion of multi-product cross-sell into existing accounts by itself provides meaningful runway. On the Engagement side, ARR growth is driven by cross-sell, upsell, and pricing actions, as well as the initial contribution from Bridge. In the quarter, Punch had a one-time strategic contraction that we previously called out on last quarter’s call. This offboarding of customers was necessary due to the materially unfavorable legacy pricing deals in place and the lack of pricing flexibility amongst a very small set of customers. In most cases, the pricing was an 80% discount from our standard subscription pricing. The proof point is that our organic ARPU in Engagement increased by 27% year over year. Another long-term benefit will be the reduced OpEx and more efficient gross margins over time. This represents another shift in our mentality from revenue at any cost to profitable growth. Excluding this, Punch had a solid growth quarter with a greater than 50% win rate on competitive deals. More than 80% of Engagement deals this quarter were multi-product, and the exciting thing is that it is becoming the norm. In Q1, PAR Ordering closed three brand new deals, all including multi-product attachment. The quality and scale of these wins matter. One of these wins is particularly notable. This was a competitive win taking share directly from the largest legacy ordering provider. It is a 70-plus unit brand driving meaningful ARR. That is exactly the profile we want: scale, intentional platform selection with the ability to sell in additional functionality, and meaningful economics. Another important example is the selection by Pizza Factory. This was an all-PAR full platform deal across 100-plus locations. Adding Ordering to our bag gives a strategic weapon versus POS- or loyalty-only players. Full platform plus pizza is a powerful combination and it is a strong validation of how well our solutions work together in a high-throughput, complex environment. We continue to see strong demand from brands migrating off legacy online ordering providers and standardizing on PAR Ordering. Moving to Retail. We continue to see strong momentum in our retail business in the fuel and convenience space, most notably with the success of Q1 launches of Stinker Stores, H&S Energy, and Parker’s. Pipeline for the remainder of the year remains strong, with several tier-one enterprise brands in active negotiation. In Q1, we released our Touchpoint self-checkout, including loyalty extension, and we are excited about the market opportunities as we expand our footprint inside the four walls of the C-store. On the AI front, PAR Intelligence is now live across nearly 1,700 retail sites, including enterprise-scale deployments at Parker’s Kitchen and Cumberland Farms. We are currently in discovery mode, using real-world operator data to refine our models and eliminate hallucinations. Our roadmap is aggressive. Following this initial scale-up, we will move into the action phase, introducing agentic program management and automated campaign creation—combining the agentic insights with the autonomous ability to act instantly—showcasing the power of AI orchestration, the agentic operating system, and our vertical software. Looking further ahead, we will add a strategy layer incorporating external signals like weather and market conditions to guide site-level management automatically. We are exceedingly confident that we will be the AI partner for our customers in this vertical. Overall, Q1 reflects continued progress in retail, and as we scale our customers, extend our product capabilities, and embed intelligence to the platform in ways that support ARR expansion and long-term value creation. Briefly on Hardware. Q1 was a remarkably strong quarter. We are ahead of plan, and the full year is tracking nicely. While tariffs continue to pressure margins at the edges, demand remains strong, and our PAR Wave terminal continues to serve as the enterprise standard during a major refresh cycle. Crucially, we are seeing continued partnership with Opsio and McDonald’s across both hardware and services sales. I also want to update you on our acquisition of Bridge, which is an integral part of the PAR Intelligence platform. Bridge is an identity resolution platform that enables multi-unit operators to unlock the value of first-party data by resolving identity across their entire transaction base, not just loyalty members. Today, most retailers only see a fraction of transactions through loyalty programs, which limits measurement, personalization, and ultimately monetization to a fraction of a retailer’s customer base. The value Bridge delivers to customers is best evidenced by our work with a large national retailer with over 15,000 sites, where our identity resolution supports a marketable base of 100 million customers and contributed to a reported 44% sales lift. Even in the brief time since we closed on the deal, we now have a strong pipeline across tier-one restaurants and other national retailers—existing PAR Technology Corporation customers. Bridge is crucial in our ability to drive AI outcomes for customers that we can monetize versus the basic dashboarding of our peers. Before turning the call over to Bryan for a deeper dive into the numbers, I want to emphasize the importance of PAR Intelligence for our customers. PAR Intelligence is not a new point solution, and it is not a generic AI tool. It is an agent harness that sits across and above the PAR Technology Corporation platform, unifying data, reasoning on real operator economics, and orchestrating outcomes across the business without adding additional headcount, hours, or manual effort. Traditional platforms stop at dashboards and alerts; PAR Intelligence moves from data to outcomes. PAR Intelligence unites data across point of sale, ordering, loyalty, payments, back office, retail, and third-party systems. All this is powered by something incredibly hard to replicate: PAR Technology Corporation’s ability to process more than 12 billion annual transactions and 640 million guest profiles in over 20 years as a data backbone of the largest restaurant and retail operations in the world. PAR Intelligence leverages enterprise-level context for its reasoning—unit P&L, labor constraints, menu performance, and guest interactions. It executes actions through agents, always within the defined rules of the operator. Adoption of PAR Intelligence is accelerating because the use cases are clear. The platform is moving from reporting what happened to recommending, and in some cases, automating what to do next. Customers like Parker’s Kitchen, a 100-plus unit C-store chain, are seeing immediate ROI, with Parker’s CEO highlighting, "Better outcomes are being driven by PAR’s agentic operating system." Because PAR Intelligence sits across and above the PAR Technology Corporation platform, it is ultimately enhancing value, thereby the stickiness of our beachhead products. Importantly, PAR Technology Corporation does not have the same pricing exposure as some of our SaaS peers who have a per-seat monetization construct that can be undercut by AI and has a potential impact on customer team sizes. PAR Technology Corporation overwhelmingly contracts on a per-store basis. The viability of this model is tied to enterprise site counts, which remain stable, versus customer staffing levels. AI is not a separate initiative for PAR Technology Corporation. It is an embedded capability that expands our platform value and supports long-term profitable growth. PAR Intelligence will not cannibalize existing per-site software revenue. Rather, the continued introduction of intelligence-driven capabilities serves as a fully incremental revenue stream. Our confidence here comes strictly from the deep engagement we have with our customers and their rapid early adoption of our first set of tools. With that, Bryan will dive into numbers in greater detail.

Thank you, Savneet, and good afternoon, everyone. Q1 marked a strong start executing to our 2026 operating plan. We continue to drive organic growth across our products and the verticals we serve, and our disciplined management of OpEx allowed the margin contribution to flow through to the bottom line. For the fifth quarter in a row, adjusted EBITDA has grown sequentially, with reported Q1 adjusted EBITDA of $8.9 million, a $4.4 million improvement compared to Q1 of the prior year, and we are well positioned for an accelerated trajectory as we continue to refine our operating model. Now to the financial details. Total revenues were $124 million for Q1 2026, an increase of 19% compared to the same period in 2025, including 15% subscription service revenue growth. Net loss from continuing operations for 2026 was $16 million, or a $0.39 loss per share, compared to a net loss from continuing operations of $25 million, or a $0.61 loss per share, reported for the same period in 2025. Non-GAAP net income for 2026 was $3.9 million, or $0.10 earnings per share, an improvement of $4.2 million compared to a non-GAAP net loss of $0.2 million, or a $0.01 loss per share, for the prior year. Adjusted EBITDA for 2026 was $8.9 million, an improvement of $1.9 million sequentially from Q4 2025 and $4.4 million compared to Q1 2025. Now for more details on revenue. Subscription service revenue was reported at $79 million, an increase of $10 million, or 15%, from the $68 million reported in the prior year, and represents 63% of total PAR Technology Corporation revenue. ARR exiting the quarter was $330 million, an increase of 16% from last year’s Q1, with Engagement Cloud up 20% and Operator Cloud up 12%. Total organic ARR was up 11% year over year. Sequentially, Q1 organic ARR was flat versus Q4 2025. The incremental ARR from our continued successful rollouts of tier-one Operator Cloud customers was offset by planned exits in Engagement Cloud. As we previously messaged, this quarter we managed planned exits for select legacy Engagement Cloud customers who were using a portion of our Engagement platform as a component of their solution. This has enabled us to increase ARPU and de-risk forward churn by exiting these low-priced, non-platform customers. As a result, organic Engagement Cloud ARPU increased 27% year over year. To connect overall ARR, please note at the end of Q1, we completed the acquisition of Bridge, which includes approximately $14 million of ARR. Hardware revenue in the quarter was $29 million, an increase of $7 million, or 34%, from the $22 million reported in the prior year. The increase was driven by both client refresh programs and partnership expansion with our legacy customer, as well as additional penetration of hardware attachment into our expanding software customer base. Professional service revenue was reported at $16 million, an increase of $3 million, or 19%, from the $14 million reported in the prior year. The increase was primarily driven by an increase in installation revenue associated with the rollouts of tier-one Operator Cloud customers. Now turning to margins. GAAP gross margin was $54.5 million, an increase of $6.2 million, or 13%, from the $48.3 million reported in the prior year. The increase was driven by subscription service, with gross margin dollars of $44 million, an increase of $4 million, or 11%, from the $40 million reported in the prior year. GAAP subscription service margin for the quarter was 56% compared to 58% reported in Q1 of the prior year. Excluding the amortization of intangible assets, stock-based compensation, and severance, non-GAAP subscription service margin for Q1 2026 was 66%, compared to 69% in Q1 2025. As we have discussed previously, our subscription service margin continues to reflect the impact of a fixed-profit contract we acquired from one of our 2024 acquisitions. The year-over-year decrease in margins reflects a shift in revenue mix driven by growth in this contract in 2025. Excluding margin related to this contract, which is not reflective of core operational performance, non-GAAP subscription service margin was 71% for the quarter, in line with what we have seen consistently in recent quarters. Hardware margin for the quarter was 22%, versus 25% in the prior year. The decrease was driven by a shift in hardware product mix and higher costs related to tariffs and increased demand in processor and memory chips. Pricing enhancement plans initiated in 2025 have partially mitigated these cost increases. We continued to expand the pricing plans in Q1 and will continue to evaluate our pricing strategy on a quarterly basis. We expect hardware margin percent to stabilize in the lower 20s moving forward. Professional service margin for the quarter was 28% compared to 25% reported in the prior year. The increase in margin year over year was primarily driven by improved margin as a result of reduced third-party spending and improved cost management. In regard to operating expenses, GAAP Sales and Marketing was $12 million, relatively flat from the $12 million reported in the prior year, as the benefits of cost reduction actions implemented during the quarter were largely offset by nonrecurring severance costs related to the restructuring events. GAAP G&A was $30.7 million, an increase of $21.4 million from the $9.3 million reported in the prior year. The increase was substantially driven by nonrecurring severance costs. GAAP R&D was $22 million, an increase of $2 million from the $20 million reported in the prior year. The increase reflects continuing investment in product development, including acceleration of PAR Intelligence innovation. Operating expenses excluding non-GAAP adjustments were $54 million, a modest increase of $2 million, or 4%, versus Q1 2025. Exiting Q1, non-GAAP OpEx as a percent of total revenue was 43.3%, a 650 basis point improvement from 49.8% in Q1 of the prior year, demonstrating our ability to scale efficiently and drive operating leverage. As mentioned in our prior earnings call, the realignment of our business teams into two verticals and the accelerated adoption of our operating AI toolset across our organization has enabled us to rethink the operating model within our OpEx teams. The realignment plan is two-pillared: simplify the organization and simplify the operations. We finalized the realignment plan at the beginning of Q2. The phasing of this plan will predominantly be in Q2, with the remaining transitions in Q3. Operational efficiencies and additional scale are already being realized. As such, we expect operating leverage to continue to improve throughout this year, driving continued expansion of adjusted EBITDA trajectory. Now to provide information on the company’s cash flow and balance sheet position. As of 03/31/2026, we had cash and cash equivalents of $77 million. For the three months ended March 31, cash used in operating activities from continuing operations was $17 million, unchanged from the prior year. Cash usage this quarter was primarily driven by seasonal net working capital needs, which included annual variable compensation of $13 million and a sequential increase in current receivables, driven by an $8 million increase in March billings versus December. In addition, as in prior demanding macroeconomic climates, we have strategically increased inventory $4 million to lock in pricing of chips and stabilize hardware margins for the year. As previously estimated, our DSO stabilized in Q1 and we are seeing meaningful improvement in Q2 as we execute our working capital improvement plan. We expect operating cash flow to improve meaningfully to positive quarterly operating cash flow for the remainder of the year, driven by continued profitability and the benefit from working capital with improved DSO and modest improvement in DIO. Said differently, our cash flow will receive a tailwind from working capital and continued profitability. Cash used in investing activities was $3 million for the three months ended March 31 versus $6 million for the prior year. Investing activities primarily included capital expenditures of $2 million for developed technology associated with our software platforms. Cash provided by financing activities was $18 million for the three months ended March 31 versus $11 million for the prior year. The financing activities primarily consisted of net proceeds from the 2031 notes of $257 million, of which $206 million was used to repurchase a portion of the 2027 notes and $33 million was used to repurchase shares of the company’s common stock. To recap our performance, Q1 marked meaningful profit improvement while continuing to grow the top line. This momentum is evident across the following key financial metrics: revenue grew 19.4% year over year; subscription services revenue up 15%; non-GAAP OpEx as a percent of total revenue improved 650 basis points from Q1 2025; and adjusted EBITDA was $8.9 million for the quarter, an improvement of $4.4 million from Q1 2025. Now let me share our expectations going forward. As Savneet mentioned, we are initiating formal financial guidance for the second quarter and full year of 2026. This reflects the increasing visibility we have into our business, the durability of the recurring revenue base, and our confidence in the operating model we have built. We are committed to providing guidance that reflects both our visibility into the business and the discipline we apply to our operating plan. For Q2 2026, we expect total revenue in the range of $122.5 million to $127.5 million and adjusted EBITDA in the range of $9.5 million to $11.5 million. For the full year 2026, we expect total revenue in the range of $500 million to $515 million and adjusted EBITDA in the range of $44 million to $47 million. A few points of context on our outlook. Our healthy backlog and pipeline provide us with strong visibility into revenue growth. On hardware, we expect continued momentum from tier-one rollouts and refresh activity, with margins stabilizing in the low 20s as our price actions continue to offset tariff and component cost pressures. On profitability, our adjusted EBITDA outlook reflects a meaningful step up from 2025, driven by both continued top-line growth and a structurally lower cost base. The reorganization we executed at the end of Q1 and early Q2, together with a simpler AI-enabled operating model, are expected to drive a step down in our organic operating expense run rate beginning in Q2 and continuing to the back half of the year. As a result, we expect adjusted EBITDA margins to expand sequentially from the Q1 starting point, with the full impact of our cost actions more meaningfully reflected in the second half. At the same time, we continue to invest in our highest return opportunities, most notably, PAR Intelligence and our agentic platform. But we are doing so within a disciplined framework that prioritizes durable, profitable growth. Our full year 2026 guidance also includes approximately $10 million in subscription service revenue from the recently completed acquisition of Bridge. The acquisition will have minimal impact on adjusted EBITDA. I will now turn the call back over to Savneet for closing remarks prior to moving to Q&A.

Thanks, Bryan. At PAR Technology Corporation, AI is not just a customer-facing strategy. Internally, AI is fundamentally transforming everything we do as a company. One example is our ability to rapidly enhance our procurement function and pinpoint areas of vendor waste, with millions of in-year savings. Crucially, AI is also enhancing our development velocity and we are now seeing this translate into tangible output across the business. In our Engagement platform alone, the roadmap we committed this year is five times larger than last year, and we are delivering roughly twice as many incremental noncommitted features quarter over quarter. Capacity simply did not exist before. At the same time, speed and productivity are improving. Time to ship is down more than 25%. In parallel, we are investing in what we call an agentic software factory. An internal platform designed to orchestrate planning, development, and testing through autonomous agents—effectively enabling end-to-end backlog execution and improving daily developer output by 20% without sacrificing quality. This is not just about adopting AI tools faster than others. It is about building a fundamentally different development engine—one that we believe will become a durable competitive advantage over time. PAR Technology Corporation’s strategic value lies in the fact that we power some of the most complex, high-volume restaurant and retail operations in the world—technology that is both mission-critical and deeply embedded. As the industry continues to consolidate around fewer, more capable platforms, we believe PAR Technology Corporation is uniquely positioned to be a long-term system of record for our customers. PAR Intelligence unlocks a fully agentic operating model for every multi-unit operator. Our in-year adoption target for PAR Intelligence is greater than 50,000 sites. Aligned to this is our progress towards the Rule of 40. This is the clearest external measure that we are building a business that can both grow and compound value over time. For us, it is not about optimizing a single quarter, or choosing growth at the expense of profitability, or vice versa. It is about steadily improving the underlying economics of the model. The progress you are seeing today reflects deliberate execution, not financial engineering, and we believe sustained improvement in Rule of 40 performance is a strong indicator that PAR Technology Corporation is becoming a more durable and higher-quality software company. This quarter does not mark the finish line, but it does mark progress. We believe the market has us miscast today, and we intend to let consistent execution, quarter by quarter, correct that. Over the coming quarters and years, we will prove that PAR Technology Corporation offers an irreplaceable solution to brands, PAR Technology Corporation is adapting to the times of AI, and PAR Technology Corporation will deliver transformative results. With that, Operator, we can open up the call for questions.

Thank you. At this time, we will conduct a question-and-answer session. As a reminder, to ask a question, you will need to press 11 on your telephone and wait for your name to be announced. To withdraw your question, please press 11 again. Please stand by while I compile the Q&A roster. Our first question comes from Mayank Tandon from Needham. Please go ahead.

Thank you. Good evening. Savneet, Bryan, and Chris. Good to hear from you, and congrats on the print and also the guidance framework. I think that is very helpful. Savneet, let me just start with your expectations on ARR. Could you just unpack the various levers you have? So thinking about ARR, how should we think about pricing, location growth, and then also have you reflected any tier-one wins in your expectations of the reacceleration in ARR growth over the balance of 2026?

Great question. We continue to target mid-teens ARR growth without the inclusion of any large mega deals in there. We continue to be conservative. Until those happen, we will not throw it into that target. In terms of levers of driving our growth, we really have two levers today: new site count and upsell into the base, i.e., ARPU. Where we are seeing really strong success is now being able to sell multi-product at the time of the initial sale, so more growth is being driven by the new customer motion, but that is primarily driven by the success of the co-sell/cross-sell motion that we have. At the same time, we are still upselling into our existing base, but I think it shows just how early we are in our TAM that new sales are still the majority of our revenue growth.

Got it. And then I have to get an AI question in, so let me ask you. You talked about the efficiencies with AI, but on the revenue side, as you launch PAR Intelligence, which I know is very recent, I am just curious, have you gotten any feedback from clients—what the interest level is? And is there a way to monetize this? Is that something we will see potentially in 2026, or is this more of a longer-term initiative to be able to drive revenue off this?

Let me answer the second part because I think it is an important one. We would not be putting so much emphasis on it if we did not think we can monetize it. I think we feel far more convicted this quarter than we did last quarter or the quarter before that given our engagement with customers, we think not only that they enjoy the product, but they will pay for it. The way we think about it is today’s products give them, call it, AI discovery—the ability to interact, chat, and pull reports. But tomorrow’s products will give them predictions, and the future products will give them automated actions, meaning, can you run your store on autopilot? As we get to that point, we will absolutely get to monetize it. We look at AI as an incremental revenue stream that will happen this year. We do not assume massive assumptions within our guidance, but the mandate to our product teams and to our general managers is that revenue must come this year. The reason we are so excited about it is we believe it is going to be an incremental lever of revenue growth, not replacement and certainly not something that will cannibalize the value of the core products we have today. That confidence candidly just comes with the fact that we launched our retail product as an example this quarter and we had 1,700 stores already up and running on it. When we launch a product, it is adopted so much faster and it makes the entire base stickier. So, long answer, but it is something we will monetize, and it is something we expect to start monetizing this year.

Great. Thank you so much.

Thanks, Mayank.

Thank you. Our next question comes from George Sutton from Craig-Hallum. Please go ahead.

Thank you. Savneet, you talked about an upcoming strategy layer. I wondered if you could just walk through what that might mean for you.

It is related to what we are doing on Drives, which is in our retail suite, but I think strategy will eventually stretch across everything we do. The way we think about AI today, as I mentioned, is you have a first wave of AI tools within enterprise software which is ostensibly giving you that ChatGPT-like experience on the front of the product. I think it moves from there to the predictability of your business—"This is going to happen; you want to do this"—and then it moves to actions and autopilot—"Hot dogs are running out; it will automatically go order those hot dogs for you." Where I think it is really exciting is this idea down the road where it becomes more of a strategic partner for you. It says, "There is a snowstorm coming next week; you want to load up on hot chocolate," or it takes into account weather, traffic patterns, competitive dynamics, and promotions and builds out a strategy layer. We are building that out today. As I mentioned, we are still testing other models. We are still working through hallucinations. But we will be in market this year with a strategy component for our customers. It is really becoming a partner to our customers that live every single day in that store.

Could you give us an update on the tier-one opportunities in your pipeline in terms of your level of confidence? Any sense of timing or move forward from the prior quarter?

We continue to make tremendous progress there. There have been some good movements as it relates to personnel at these organizations that I think look fairly upon PAR Technology Corporation. We expect to have the outcomes in the second half of this year, and we continue to feel pretty good about it. Tier-one deals are always 50/50, in my experience. What I think I am excited about is we feel very confident about the move in those organizations, but, as I said, what we are even feeling more confident about is the ability to drive more growth through pushing multi-product to the customer base outside of that. The revenue growth side of PAR Technology Corporation is what is exciting us as we turn the first quarter here.

Awesome. Thank you very much.

Thank you. Our next question comes from Stephen Hardy Sheldon from William Blair. Please go ahead.

Hey. Thanks, and I will echo: very good to see some formal guidance now. First, as we think about ARR, just any rough sense you can provide on the drag to ARR this quarter from offboarding those customers you mentioned? Was that predominantly around Punch, or was there any notable offboarding around other solutions? And then are you effectively through that process, or is there more to go in the coming quarters as we think about the ARR trajectory?

We are through it. Think about it as deals that were lapsing at the very end of last year or the beginning of this year—January or February. We are through it. You will not see that impact again. It was heavily levered towards Punch—one particularly large customer. As you can see, ARPU jumped 27%. That is not because we repriced the base at a 27% increase. It is because we removed multiple customers that were at 80% discounts. We are through it, and I think it is amazing we still grew in double digits given the impact of that. What is great is we do not have any more of that, and as I said, the growth motions are still moving forward really, really nicely.

Stephen, I will just add to that too. This acted like a pull-in of churn for us for this year. Over 60% of our churn for this year was in Q1, and so we were able to manage that out effectively, but we do not expect to have a higher rate of churn this year than we recently typically have.

Okay. Got it. That is good to hear. And then just, as a follow-up, it would be great to get an update on your overall traction with convenience stores on the retail side. It sounds like you have multiple tier-one opportunities there that you are going after. So curious how convenience store revenue has been trending and the outlook for expanding that monetization beyond the primary source right now, which I think is still just predominantly loyalty.

It is an optimal question. I would say we are very bullish on what is happening at C-store. Our loyalty product continues to grow. We have a strong tier-one pipeline, as I mentioned—multiple deals in negotiation, including within the major oil space. That is a business that, similar to Punch, we are the 800-pound gorilla where we have the best product, the best team, and the best outcomes. I think that will continue to grow at or above company rates. What is exciting is, for the first time, we have now expanded beyond that. We launched our Touchpoint product in Q1. Touchpoint, if you recall, we carved out the assets of a kiosk-like product about a year ago, and that brings loyalty in the store. Think of a screen in the store where you can engage loyalty, upsell, promotions, and so on. We will hopefully have our first customers on that this year. That will be an extension of loyalty, but more in the sense that it can also provide self-checkout. The really exciting part that I think we have discovered within retail is on the AI front where PAR Drive—our first product that is the agentic layer across C-store—already has 1,700 stores on it. We are using real data to refine that model, and I think we are going to have tremendous success pushing that through the retail side of the business. Our retail leadership is all-in on AI. We have rebuilt our product teams and engineering teams to be focused on it. I think you will see the retail side, if we are successful on this AI endeavor, grow at faster rates than the restaurant side.

Great. Thanks for taking my questions.

As a reminder, to ask a question, you will need to press 11 on your telephone and wait for your name to be announced. Our next question comes from Maxwell Michaelis from Lake Street Capital Markets. Please go ahead.

Hey, guys. A few from me. First, can we go to Punch—50% win rate, I think you mentioned in the quarter. What is resonating with the customer base right now when you go to market? And then also, can you share historically what Punch win rate has been?

Absolutely. The core reason we are winning has historically always been that Punch is the best product in the market. Obviously, I am subjective there, but I think objectively, through data, we are the largest product and continue to grow faster than market. That is not only the depth of the product, but the breadth of the product and what we can do with that product. Loyalty is a very robust initiative. It is millions and millions of profiles. If you are a large restaurant organization, or a retail organization for that matter, you are not going to go with something you have vibe-coded or a startup. You need something that has reliability, stability, and security that you need for that scale. We think we are the best in market, and we continue to take share. The other part is, as I mentioned on the call, this ability to sell ordering and payments alongside of it. It makes the product more seamless for our customers and gives them a single digital cockpit to manage their menus. It is a real unlock for our customers. What has been exciting about that is I think the ability to have a real ecommerce or online ordering product alongside Punch will help increase the win rates for both because it simplifies the journey for our customers. Again, in an AI world, I think you want your data for both those products in one place so that you can let agents run. I am pretty excited by the continued success there. Historically, win rates have been at, I would say, 35–40%. This is definitely a step up, and hopefully, that continues.

Perfect. And then last one for me. Obviously, you are going to be monetizing PAR Intelligence, but curious to know how you plan on pricing that when you go to your customers. Is that going to be subscription-based, or do you plan on instituting a usage-based model?

It is a great question. One of the cool things that I mentioned on the call that we realized is at PAR Technology Corporation we price on a per-site basis. We are not tied to the amount of humans using a product. In fact, it is one of the reasons I think our AI products could be even higher margin than our core products because as we deploy AI at the corporate level, you need less and less people to engage with it. Specifically, the first products we are thinking will be SaaS-like billing because that is what our customers are used to. That is how we can upsell and bundle it into the existing contracts that we have. The customers that we are engaging with today—the customers that are letting us test their data—we have communicated that that is how we will be pricing it. As we move to this world where we are the strategic recommendation engine for them or running their stores on autopilot, we could explore other forms also as we figure out what the cost model will be. Right now, we are thinking about it as a SaaS model.

Awesome. Thanks, guys.

Our next question comes from Andrew James Harte from BTIG. Please go ahead.

Hey. Thanks for the question. Can you hear me? Yeah. Thanks for the question. Just one from my end. Savneet, if you could just talk about how you feel the business is standing on better ground today than it was a few quarters ago, and what really gave you the confidence to provide quarterly guidance and annual guidance? Thank you.

I think we feel incredibly confident about our market positioning today. We are, I think, unquestionably the furthest ahead when it comes to AI within the restaurant and within the C-store. We printed a $9 million EBITDA quarter, and as Bryan mentioned, we think that is going to expand meaningfully for the rest of the year. As Bryan mentioned, we are going to be cash flow generating—operating cash flow—for the rest of the year, and that puts us in a position that we have never been before. Our products are winning at rates they never won before. Our agentic capabilities are far ahead of our peers. We have a cash flow engine that we can use to create shareholder value. As we sit today, that confidence comes from market positioning but also, candidly, the scale of the business, the ability to generate cash, and nothing feels better than winning—winning in our category. We feel incredibly strong about where we are today. It will all come down to our ability to deliver products to our customers in this AI world that we can monetize and show the value there, and that is why we feel so confident.

Thank you.

This concludes the question-and-answer session. I will now turn it over to Chris Byrnes for closing remarks.

Thanks, Antoine, and thanks to everyone joining us this afternoon. We look forward to updating you and speaking with you further in the coming weeks. Have a good night.

Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.