TOST Q3 2025

Q4 2025 Q3 2025 Q2 2025 Q1 2025

Earnings

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 $… Read more 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.