Toast (TOST) Company Report

Toast projects a strong 2025, with recurring gross profit expected to grow at 32% and adjusted EBITDA margins expanding by more than 600 basis points.
For 2026, the company forecasts net location adds to grow, recurring gross profit to increase above 20%, and margins to be flat to slightly up, reflecting strategic investments in new verticals.
Strategic priorities include doubling market share in the core business and expanding into new markets (enterprise, international, food and beverage retail), funded by the core business's 40% margins.
The company also noted stable GPV per location trends and an improving net payments take rate, attributed to pricing, COGS optimization, and digital product advancements.

1 day ago

Transcript

Toast Projects Strong 2025 Performance and Outlines 2026 Growth Strategy

TOST

Guidance Update

New Projects/Investments

Revenue Acceleration/Inflection

Toast expects a strong 2025, with recurring gross profit projected to grow 32% at a 33% margin, and emerging businesses surpassing $100 million in ARR.
For 2026, the company anticipates recurring gross profit growth of at least 20% and margins to be flat to slightly up, fueled by strategic investments in new verticals including enterprise, international, and food and beverage retail.
The company aims to double its market share in the core business, maintaining U.S. SMB net adds in a similar range in 2026 as in 2025, supported by increased sales rep capacity and product innovation like Toast IQ.
Net payments take rate has consistently increased year-over-year in 2025, driven by pricing strategies, cost optimization, and the expansion of digital products such as surcharging.

1 day ago

Transcript

Toast Discusses Strong 2025 Performance and 2026 Investment Strategy at UBS Conference

TOST

Guidance Update

New Projects/Investments

Revenue Acceleration/Inflection

Toast achieved significant milestones in 2025, including crossing a $2 billion revenue milestone, delivering 32% recurring gross profit growth at a 33% margin, and expanding adjusted EBITDA margins by more than 600 bps.
For 2026, Toast anticipates net location adds to grow compared to 2025, recurring gross profit to increase by a minimum of 20%, and margins to be flat to slightly up, reflecting strategic investments in new verticals and core business expansion.
The company's net payments take rate has shown year-over-year improvement in Q3 and Q4 2025, attributed to surgical pricing, cost optimization efforts, and advancements in digital products.
Toast is confidently investing in new market segments like enterprise, international, and food and beverage retail, applying its proven playbook and leveraging strong win rates and sales productivity in its core business to drive future growth.

1 day ago

Transcript

Toast Reports Strong Q3 2025 Results, Exceeds $2 Billion in ARR

TOST

Earnings

Guidance Update

Revenue Acceleration/Inflection

Toast reported strong Q3 2025 results, including 34% top-line growth and 35% adjusted EBITDA margins, which expanded 5 percentage points year-over-year.
The company achieved a significant milestone, surpassing $2 billion in Annual Recurring Revenue (ARR) for the first time, with both payments and SaaS ARR each exceeding $1 billion.
Total fintech and subscription gross profit, representing recurring gross profit streams, increased 34% year-over-year, driven by a total take rate of 98 basis points, up 7 basis points from a year ago.
Toast added approximately 7,500 net locations in Q3, bringing the total to 156,000 locations, a 23% increase year-over-year, and anticipates increased net adds in both 2025 and 2026.
New market segments (enterprise, international, and food and beverage retail) are on pace to collectively reach $100 million in ARR this year and are expected to be significant drivers of future net adds and market share expansion.

Nov 4, 2025, 10:00 PM

Transcript

Toast Reports Strong Q3 2025 Results, Exceeds $2 Billion ARR, and Raises Full-Year Outlook

TOST

Earnings

Guidance Update

New Projects/Investments

Toast reported strong Q3 2025 results, with ARR crossing $2 billion and growing 30% year-over-year, while total fintech and subscription gross profit increased 34%. Adjusted EBITDA reached $176 million, with margins expanding to 35%.
The company added approximately 7,500 net locations in Q3, bringing the total to 156,000 locations, a 23% increase year-over-year. International SaaS ARPU is up 20% year-over-year, and new AI-driven products like Toast IQ and Toast Advertising are seeing significant adoption and impact.
Toast raised its full-year 2025 outlook, now expecting 32% growth in fintech and subscription gross profit and $615 million in adjusted EBITDA at the midpoint. The company also anticipates sustaining over 20% growth in 2026 with stable to slightly increased margins.
Year-to-date through Q3 2025, Toast repurchased 1.5 million shares for $54 million.

Nov 4, 2025, 10:00 PM

Transcript

Toast Reports Strong Q3 2025 Results, Exceeds $2 Billion ARR

TOST

Earnings

Guidance Update

Revenue Acceleration/Inflection

Toast delivered strong Q3 2025 results, achieving 34% top-line growth and 35% margins, and for the first time, surpassed $2 billion in ARR.
Total fintech and subscription gross profit, which are recurring gross profit streams, increased 34% year-over-year, while adjusted EBITDA reached $176 million with a 35% margin.
The company added approximately 7,500 net locations in Q3, bringing the total to 156,000 locations, a 23% increase from a year ago.
Toast raised its full-year 2025 outlook, now expecting 32% growth in fintech and subscription gross profit and $615 million in adjusted EBITDA at the midpoint.
Strategic growth areas, including enterprise, international, and food and beverage retail, are collectively on pace to reach $100 million in ARR this year, and the new AI assistant, Toast IQ, has been used by over 25,000 restaurants more than 235,000 times since early October.

Nov 4, 2025, 10:00 PM

Transcript

Toast Announces Third Quarter 2025 Financial Results

TOST

Earnings

Guidance Update

Product Launch

Toast reported strong financial results for Q3 2025, with Annualized Recurring Run-rate (ARR) growing 30% to over $2.0 billion as of September 30, 2025, and Adjusted EBITDA reaching $176 million.
The company added approximately 7,500 net new Locations in Q3 2025, bringing the total to approximately 156,000 locations globally, and Gross Payment Volume (GPV) increased 24% year over year to $51.5 billion.
GAAP net income for Q3 2025 was $105 million, compared to $56 million in Q3 2024.
Toast provided an outlook for Q4 2025, expecting Adjusted EBITDA in the range of $140 million to $150 million. For the full year 2025, Adjusted EBITDA is projected to be between $610 million and $620 million.
Recent business highlights include the launch of Toast IQ and Toast Advertising, a strategic global partnership with Uber Technologies, Inc., and securing large-scale operators such as Nordstrom and TGI Fridays.

Nov 4, 2025, 9:11 PM

8-K

Toast Launches Conversational AI Assistant, Toast IQ

TOST

Product Launch

New Projects/Investments

Toast (NYSE: TOST) has expanded its Toast IQ intelligence ecosystem with a conversational AI assistant for restaurants and food and beverage retailers, leveraging real-time and historical data from approximately 148,000 customer locations.
The new AI assistant provides personalized recommendations, allows users to ask complex business questions, and enables direct actions like updating menus or editing shifts within a single conversational interface.
Toast is collaborating with The Coca-Cola Company to create an exclusive AI-powered feature within Toast IQ designed to optimize menus and improve beverage sales.
Toast IQ is currently available to all U.S. customers on iOS and Android via the Toast Now mobile app and Toast Web, with future plans for international availability and expanded capabilities.

Oct 29, 2025, 12:00 PM

Press Release

Toast Reports Strong Q2 2025 Results and Raises Full-Year Guidance

TOST

Earnings

Guidance Update

New Projects/Investments

Toast reported strong Q2 2025 results, with recurring gross profits growing 35% year-over-year and Adjusted EBITDA reaching $161 million.
The company added a record 8,500 net new locations, bringing the total to 148,000 locations. New customer segments, including enterprise, international, and food & beverage retail, now account for over 10,000 live locations and are on track to exceed $100 million in ARR collectively by year-end.
Toast raised its full-year 2025 guidance, now expecting 29% growth in FinTech and subscription gross profit and $575 million in Adjusted EBITDA at the midpoint.
Strategic developments include the launch in Australia as its fourth international market and a new partnership with American Express to enhance diner experiences.

Aug 6, 2025, 12:20 AM

Toast Inc. Financial Performance and S&P 500 Outlook

TOST

Revenue Acceleration/Inflection

Earnings

New Projects/Investments

Toast Inc. has a market capitalization of $27 billion and is being considered for potential S&P 500 inclusion by year-end due to achieving consecutive quarters of GAAP profitability.
The company has demonstrated strong financial performance, with revenue growing at a 50% CAGR over the last five years and profit margins increasing for five consecutive years.
Operating margins have significantly improved from negative 4% at the end of 2023 to 3.7% and continue to rise.
Toast is expanding its market reach through large enterprise deals with clients like Marriott and Applebee's, suggesting a potentially larger Total Addressable Market (TAM) than currently estimated.

Jul 22, 2025, 5:14 PM

CNBC Television

Earnings Transcripts

Quarterly earnings call transcripts for Toast.

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