Companies /Technology

Toast Inc - Class A

NYSE: TOST Software - Infrastructure
$35.39
▼ $1.58 (−4.27%) today
Markets open · 4:01pm ET

Q3 2025 Earnings

Reported Nov 4, 2025, 4:11pm ET · SEC source
$0.16
Miss −31.45%
EPS · est. $0.23
$1.6B
Beat +2.95%
Revenue · est. $1.6B
−12.3%
Trailing market
TOST vs S&P since report
6 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−3%0+3%+6%Nov 4Nov 5report 4:11pm ETearnings+0.4%+5.6%
−3%0+3%+6%Nov 4Nov 5earnings+0.4%+5.6%
TOST +5.6%S&P 500 +0.4%
−3%0+3%+6%Nov 4Nov 5report 4:11pm ETearnings+0.7%+5.6%
−3%0+3%+6%Nov 4Nov 5earnings+0.7%+5.6%
TOST +5.6%NASDAQ +0.7%
−8%−4%0+4%Nov 3Nov 12report 4:11pm ETearnings+1.1%+1.3%
−8%−4%0+4%Nov 3Nov 12earnings+1.1%+1.3%
TOST +1.3%S&P 500 +1.1%
−8%−4%0+4%Nov 3Nov 12report 4:11pm ETearnings+0.3%+1.3%
−8%−4%0+4%Nov 3Nov 12earnings+0.3%+1.3%
TOST +1.3%NASDAQ +0.3%
+9.48%
Day of report
−6.77%
Next session
−1.74%
One week
−11.43%
30 days

S&P 500 over the same 30 days: +0.89%.

Did TOST Beat Earnings? Q3 2025 Results

Toast served up a mixed but ultimately encouraging third quarter of fiscal 2025, posting revenue of $1.63 billion, a 25.1% year-over-year gain that cleared the $1.59 billion consensus estimate by 2.95%, while adjusted EPS of $0.16 fell short of the $0.23 consensus by 31.45%, reflecting heavier investment in growth initiatives across the platform. The standout driver behind the quarter was the milestone crossing of $2.02 billion in annualized recurring revenue, up 30% year over year, powered by a 31% jump in payments ARR and a 28% rise in subscription ARR as the platform expanded to approximately 156,000 restaurant locations globally. Profitability also strengthened, with Adjusted EBITDA climbing 56% to $176 million and GAAP net income nearly doubling to $105 million. Despite the EPS shortfall, shares rose in after-hours trading as investors focused on the operational momentum and raised guidance, with management lifting full-year 2025 Adjusted EBITDA expectations to $610 million to $620 million, up from a prior range of $565 million to $585 million.

Key Takeaways
  • ARR grew 30% YoY to over $2.0 billion, with payments ARR up 31% and subscription ARR up 28%
  • Added approximately 7,500 net new locations in Q3 2025, bringing total to 156,000
  • GPV grew 24% YoY to $51.5 billion
  • Non-GAAP subscription services and financial technology solutions gross profit grew 34% YoY to $506 million
  • Adjusted EBITDA grew 56% YoY to $176 million

“Toast delivered another strong quarter - ARR grew 30% to over $2.0 billion, Adjusted EBITDA was $176 million, and we added approximately 7,500 net locations and now power 156,000 locations globally.”

Toast CEO, on the earnings call

Forward Guidance & Outlook

For Q4 2025, Toast expects non-GAAP subscription services and financial technology solutions gross profit of $480 million to $490 million (22-25% growth vs. Q4 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 of $1,865 million to $1,875 million (32% growth vs. 2024, up from 28-29% growth) and Adjusted EBITDA of $610 million to $620 million (raised from $565 million to $585 million).

TOST YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$500.0M$1.0B$1.5B$1.3B$1.6BRevenue$322.0M$432.0MGross Profit$34.0M$84.0MOperating Income$56.0M$105.0MNet Income
$0$500.0M$1.0B$1.5BRevenueGross ProfitOperating IncomeNet Income

TOST Revenue by Segment

Financial Technology Solutions$1.3B
Subscription Services$244.0M
Hardware and Professional Services$44.0M

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