Companies /Technology

Toast Inc - Class A

NYSE: TOST Software - Infrastructure
$35.17
▼ $1.80 (−4.87%) today
Markets closed · 6:40pm ET

Q1 2025 Earnings

Reported May 8, 2025, 4:12pm ET · SEC source
$0.09
Miss −51.64%
EPS · est. $0.19
$1.3B
Miss −0.38%
Revenue · est. $1.3B
−0.7%
Trailing market
TOST vs S&P since report
6 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
0+5%+10%+15%May 8May 9report 4:12pm ETearnings+0.0%+10.9%
0+5%+10%+15%May 8May 9earnings+0.0%+10.9%
TOST +10.9%S&P 500 +0.0%
0+5%+10%+15%May 8May 9report 4:12pm ETearnings+0.0%+10.9%
0+5%+10%+15%May 8May 9earnings+0.0%+10.9%
TOST +10.9%NASDAQ +0.0%
−8%0+8%+16%May 7May 16report 4:12pm ETearnings+4.6%+17.1%
−8%0+8%+16%May 7May 16earnings+4.6%+17.1%
TOST +17.1%S&P 500 +4.6%
−8%0+8%+16%May 7May 16report 4:12pm ETearnings+6.0%+17.1%
−8%0+8%+16%May 7May 16earnings+6.0%+17.1%
TOST +17.1%NASDAQ +6.0%
+11.43%
Day of report
+4.97%
Next session
+9.50%
One week
+5.85%
30 days

S&P 500 over the same 30 days: +6.56%.

Did TOST Beat Earnings? Q1 2025 Results

Toast posted a mixed but operationally compelling first quarter for 2025, swinging to GAAP profitability while falling short on both top and bottom lines versus Wall Street expectations. The company earned $0.09 per share, missing the $0.19 consensus estimate by 51.64%, while revenue of $1.34 billion came in just 0.38% below forecasts despite climbing 24.4% year over year. The headline miss, however, obscured a meaningful underlying story: adjusted EBITDA more than doubled to $133.00 million from $57.00 million a year ago, driven by sharp operating leverage as restructuring charges fell from $41.00 million to just $7.00 million. Platform scale expanded in tandem, with total restaurant locations growing 25% to roughly 140,000 and gross payment volume rising 22% to $42.20 billion. Strategic momentum was further validated by the signing of Applebee's, Toast's largest enterprise deal in company history. Encouraged by the trajectory, management raised full-year 2025 adjusted EBITDA guidance to $540.00 million to $560.00 million, with shares surging more than 12% in response to the report.

Key Takeaways
  • Added over 6,000 net new locations in Q1 2025
  • Total locations grew 25% YoY to approximately 140,000
  • ARR grew 31% YoY to $1.7 billion
  • GPV increased 22% YoY to $42.2 billion
  • Non-GAAP subscription services and financial technology solutions gross profit grew 37% YoY to $415 million
  • Restructuring expenses declined significantly from $41M to $7M YoY

“Toast kicked off the year with a fantastic first quarter - we added over 6,000 net new locations, grew our recurring gross profit streams 37%, and delivered $133 million in Adjusted EBITDA.”

Toast CEO, on the earnings call

Forward Guidance & Outlook

For Q2 2025, Toast expects non-GAAP subscription services and financial technology solutions gross profit of $435 million to $445 million (26-29% growth YoY) and Adjusted EBITDA of $130 million to $140 million. For full-year 2025, Toast raised guidance: non-GAAP subscription services and financial technology solutions gross profit is expected at $1,775 million to $1,795 million (25-27% growth, up from prior 23-25% growth guidance), and Adjusted EBITDA is expected at $540 million to $560 million (up from prior $510 million to $530 million).

TOST YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$400.0M$800.0M$1.2B$1.1B$1.3BRevenue$249.0M$346.0MGross Profit$15.5M$43.0MOperating Income$20.9M$56.0MNet Income
$0$400.0M$800.0M$1.2BRevenueGross ProfitOperating IncomeNet Income

TOST Revenue by Segment

Financial Technology Solutions$1.1B
Subscription Services$209.0M
Hardware and Professional Services$46.0M

Figures from SEC filings and company reports. Not investment advice.