Toast (TOST) Q3 2025 Earnings
How Did TOST Stock React to Q3 2025 Earnings?
S&P 500 over the same 30 days: +0.89%.
Did TOST Beat Earnings? Q3 2025 Results
No. Toast reported Q3 2025 earnings of $0.16 a share on Nov 4, 2025, missing the $0.23 consensus estimate by 31.4%. Revenue was $1.6B against a $1.6B estimate.
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.
- 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
What Was Toast's Outlook in Q3 2025?
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
| Metric | Q3 2025 | Q3 2024 | Year over year |
|---|---|---|---|
| Revenue | $1.6B | $1.3B | +25.1% |
| Gross Profit | $432.0M | $322.0M | +34.2% |
| Operating Income | $84.0M | $34.0M | +147.1% |
| Net Income | $105.0M | $56.0M | +87.5% |
TOST Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.