7 Stocks Billion Dollar Hedge Fund Voss Capital Is Crazy About

2. PAR Technology (NYSE:PAR)

Value of Voss Capital’s 13F Position (6/30/2024): $71.4 million

PAR Technology (NYSE:PAR) markets cloud-based hardware and software products to restaurants and retailers. Among its offerings are an e-commerce platform and a point-of-sale product.

In the 12 months that ended in September 2024, its revenue came in at $454 million, versus $304.5 million in the 12 months that ended in September 2023.  However, in Q3, its net loss rose to $20.7 million versus a net loss of $19.2 million in the same period of 2023.  But its top line did jump 41% year-over-year last quarter to $96.8 million, while its organic annual recurring revenue rose about 25%  year-over-year.  Also noteworthy is that its adjusted EBITDA rose to $2.4 million in Q3 versus an adjusted EBITDA loss of $6.56 million in Q3 of 2023.

Analysts, on average, expect PAR Technology (NYSE:PAR) to generate earnings per share of 16 cents in 2025, versus a per share loss of 77 cents this year.

Voss predicted that PAR Technology (NYSE:PAR) would benefit from very strong demand for technology by restaurants. Moreover, Voss predicted that PAR Technology (NYSE:PAR) would become profitable, pleasing the market. Other catalysts for PAR Technology (NYSE:PAR), according to Voss, include an acceleration of its ARR growth and its Investor Day which it had planned to hold in the Fall.

Since May 24, PAR Technology (NYSE:PAR) has jumped 57%.

Greenhaven Road Capital stated the following regarding PAR Technology Corporation (NYSE:PAR) in its Q3 2024 investor letter:

“PAR Technology Corporation (NYSE:PAR) – We have owned restaurant technology provider PAR for approximately five years and began buying when the share price was in the $20s. Major accomplishments over the past five years include: 1) Improving the POS (point-of-sale) code base to improve stability, which laid the foundation for growth. 2) Executing five acquisitions that expanded the addressable market, product lines, and provided scale 3) Winning Burger King and Wendy’s as customers. These Tier 1 wins have led to the biggest RFP pipeline in the company’s history. 4) Divestiture of government business to become more of a “pure play” enterprise software company. 5) Growing the ARR/Share from $1.04 to $5.30 (as of June 30, 2024) with line of sight to >$8. 6) Inflecting to profitability (while not yet reported, I think it happened in Q3 of this year). This is a vertical market software company with accelerating growth and inflecting to profitability. The markets are bigger, the products are better, the customers are larger, and team is deeper. The future is far brighter than when we invested 5 years ago.”