- PAR has a significant signed order backlog, which will lead to potential revenue generation and supports higher annual recurring revenues.
- Uncertainty over the restaurant business outlook and the weakness in Drive-Thru Communications product can continue to pressurize operating margin in the short term.
- Its free cash flow was negative in FY2020; however, the company deleveraged the balance sheet after an equity infusion in late 2020.
- Despite revenue growth, concerns over the operating margin can keep the stock price range-bound.
For further details see:
Margin Concern Can Curtail PAR Technology's Upside