Toast

TOST Q1 2025 Earnings

Reported May 8, 2025 at 4:12 PM ET · SEC Source

Q1 25 EPS

$0.09

MISS 51.64%

Est. $0.19

Q1 25 Revenue

$1.34B

MISS 0.38%

Est. $1.34B

vs S&P Since Q1 25

-53.6%

TRAILING MARKET

TOST -25.9% vs S&P +27.7%

Market Reaction

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… Read more 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
24/7 Wall St

TOST YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

TOST Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25

“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.”

— Aman Narang, Q1 2025 Earnings Press Release