Companies /Technology

Toast Inc - Class A

NYSE: TOST Software - Infrastructure
$35.18
▼ $1.80 (−4.86%) today
Markets closed · 6:05pm ET

Q2 2025 Earnings

Reported Aug 5, 2025, 4:12pm ET · SEC source
$0.13
Miss −41.78%
EPS · est. $0.22
$1.6B
Beat +2.07%
Revenue · est. $1.5B
−13.8%
Trailing market
TOST vs S&P since report
6 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−15%−10%−5%0Aug 5Aug 6report 4:12pm ETearnings+0.9%−8.7%
−15%−10%−5%0Aug 5Aug 6earnings+0.9%−8.7%
TOST −8.7%S&P 500 +0.9%
−15%−10%−5%0Aug 5Aug 6report 4:12pm ETearnings+1.4%−8.7%
−15%−10%−5%0Aug 5Aug 6earnings+1.4%−8.7%
TOST −8.7%NASDAQ +1.4%
−10%−5%0+5%Aug 4Aug 13report 4:12pm ETearnings+2.7%−5.8%
−10%−5%0+5%Aug 4Aug 13earnings+2.7%−5.8%
TOST −5.8%S&P 500 +2.7%
−10%−5%0+5%Aug 4Aug 13report 4:12pm ETearnings+3.7%−5.8%
−10%−5%0+5%Aug 4Aug 13earnings+3.7%−5.8%
TOST −5.8%NASDAQ +3.7%
−3.71%
Day of report
−0.72%
Next session
−3.50%
One week
−11.30%
30 days

S&P 500 over the same 30 days: +2.54%.

Did TOST Beat Earnings? Q2 2025 Results

Toast posted a mixed but fundamentally strong Q2 2025, with revenue of $1.55 billion growing 24.8% year over year and topping the $1.52 billion consensus by 2.07%, while GAAP diluted EPS of $0.13 fell well short of the $0.22 analyst estimate, a miss of 41.78%. The headline earnings gap was overshadowed by the operational momentum underneath, as the company added a record 8,500 net new locations in the quarter, pushing its total footprint to roughly 148,000 and driving annualized recurring run-rate to $1.93 billion, up 31% year over year. Adjusted EBITDA nearly doubled to $161 million from $92 million a year ago, and free cash flow climbed to $208 million, reflecting deepening operating leverage across the platform. A newly announced multi-year partnership with American Express, designed to connect dining guests across Resy, Tock, and Toast's restaurant network, underscored the company's push beyond pure payments. Management raised full-year Adjusted EBITDA guidance to $565 million to $585 million, up from the prior $540 million to $560 million range, signaling continued confidence in the growth trajectory.

Key Takeaways
  • Record 8,500 net new locations added in Q2 2025
  • Total locations grew 24% YoY to approximately 148,000
  • ARR grew 31% YoY to $1.9 billion
  • GPV increased 23% YoY to $49.9 billion
  • Recurring gross profit (Non-GAAP subscription services and fintech gross profit) grew 35% YoY
  • Enterprise, international, and food & beverage retail surpassed 10,000 live locations

“I'm proud of the team for delivering another strong quarter - we added a record 8,500 net new locations, recurring gross profit grew 35% year over year, and Adjusted EBITDA scaled to $161 million. Both our core U.S. restaurant business and our new market segments performed very well, with enterprise, international, and food and beverage retail passing 10,000 live locations. We are thrilled to welcome another 1,300+ unit chain to Toast as we continue to move upmarket and our international team has launched our first customer in Australia. We are also excited to announce the release of Toast Go® 3, our most powerful handheld yet, as well as a partnership with American Express aimed at delivering personalized experiences and expanding guest reach to help our customers provide better hospitality and grow. We're building a platform to help local businesses thrive and I've never been more confident in our ability to deliver on that ambition and lead this industry.”

Toast CEO, on the earnings call

Forward Guidance & Outlook

For Q3 2025, Toast expects non-GAAP subscription services and financial technology solutions gross profit of $465 million to $475 million (23-26% growth vs. Q3 2024) and Adjusted EBITDA of $140 million to $150 million. For full year 2025, the company raised guidance: non-GAAP subscription services and financial technology solutions gross profit is now expected at $1,815 million to $1,835 million (28-29% growth, up from prior 25-27%), and Adjusted EBITDA of $565 million to $585 million (raised from $540 million to $560 million).

TOST YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$500.0M$1.0B$1.5B$1.2B$1.6BRevenue$286.0M$392.0MGross Profit$5.0M$80.0MOperating Income$14.0M$80.0MNet Income
$0$500.0M$1.0B$1.5BRevenueGross ProfitOperating IncomeNet Income

TOST Revenue by Segment

Financial Technology Solutions$1.3B
Subscription Services$227.0M
Hardware and Professional Services$47.0M

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