PAR TECHNOLOGY CORPPAR

PAR TECHNOLOGY CORP Segments Disclosure

10-KFiled Feb 26, 20262 min read
Segment and Related Information
The Company operates in one segment. Our Chief Executive Officer, who serves as the Company's chief operating decision maker ("CODM"), uses aggregate financial information on a consolidated basis to allocate resources and assess performance. The CODM primarily uses net loss and operating loss to allocate resources and evaluate the Company's overall performance. The CODM uses these measures to compare results to prior periods and during our budgeting and forecasting process to assess profitability and enable decision making. Currently, our CODM does not regularly review or receive discrete asset information.

The following tables present revenues and significant segment expenses:

Year Ended December 31,
(in thousands)202520242023
Total revenues, net$455,547 $349,982 $276,714 
Less (add):
Subscription service cost of sales(1)
100,285 70,888 41,414 
Hardware cost of sales(1)
81,690 65,486 79,819 
Professional service cost of sales(1)
42,973 40,960 42,600 
Sales and marketing(1)
47,569 40,613 36,832 
General and administrative(1)
90,993 77,272 58,190 
Research and development(1)
77,463 64,107 55,701 
Depreciation and amortization35,610 29,455 25,156 
Stock-based compensation30,645 24,487 14,291 
Transaction costs3,682 8,454 2,273 
Amortization of identifiable intangible assets13,408 8,452 1,858 
Other segment items(2)
— (1,095)(9,700)
Operating loss$(68,771)$(79,097)$(71,720)
Other segment items(3)
(15,690)74,110 1,968 
Net loss$(84,461)$(4,987)$(69,752)

(1) These amounts exclude stock-based compensation expense, depreciation and amortization expense, and transaction costs, which are presented separately as additional significant segment expenses.
(2) Other segment items include adjustment to contingent consideration liability and gain on insurance proceeds. See the consolidated statements of operations for additional information on these amounts.
(3) Other segment items include other (expense) income, net; loss on extinguishment of debt; interest expense, net; (provision for) benefit from income taxes; and net income from discontinued operations. See the consolidated statements of operations for additional information on these amounts.
The following table presents revenues by geographic area based on the location of the customer:

Year Ended December 31,
(in thousands)202520242023
United States$378,772 $306,135 $253,115 
International76,775 43,847 23,599 
Total$455,547 $349,982 $276,714 

The following table presents long-lived assets, which consist of property, plant, and equipment, net and lease right-of-use assets, by geographic area based on the location of the assets:

December 31,
(in thousands)20252024
United States$15,369 $18,070 
International6,093 4,258 
Total$21,462 $22,328 

Customers accounting for 10% or more of the Company’s total revenues are summarized as follows:

Year Ended December 31,
202520242023
McDonald’s Corporation21 %15 %12 %
Yum! Brands, Inc.8 %9 %13 %
Dairy Queen7 %8 %11 %
All Others64 %68 %64 %
Total100 %100 %100 %
No other customer within “All Others” accounted for 10% or more of the Company’s total revenue for the years ended 2025, 2024, and 2023.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Mar 3, 2025
2023Feb 27, 2024
2022Mar 1, 2023
2021Mar 1, 2022
2020Mar 16, 2021
2019Mar 16, 2020
2018Mar 18, 2019
2017Mar 16, 2018
2016Apr 17, 2017
2015Mar 30, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesLeasesDebtCommitmentsStock CompensationNew StandardsPay vs Performance