Tech firm Toast Q2 revenue beats expectations

Toast

05/08/2025 22:10

Overview

Toast Q2 2025 revenue of $1.55 bln beats analyst expectations, per LSEG data

Net income for Q2 2025 rises to $80 mln from $14 mln last year

ARR grows 31% yr/yr to $1.9 bln, reflecting robust expansion

Co enters strategic partnership with American Express to enhance hospitality

Outlook

Toast expects Q3 non-GAAP gross profit of $465 mln to $475 mln

Company anticipates Q3 adjusted EBITDA of $140 mln to $150 mln

Toast projects full-year gross profit of $1,815 mln to $1,835 mln

Company forecasts full-year adjusted EBITDA of $565 mln to $585 mln

Result Drivers

NEW LOCATIONS - Toast added a record 8,500 net new locations, boosting ARR by 31% to $1.9 bln

INTERNATIONAL EXPANSION - Launch of operations in Australia and growth in enterprise segments contributed to results

PRODUCT INNOVATION - Introduction of Toast Go 3 handheld device aimed at improving service efficiency

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.55 bln
$1.52 bln (19 Analysts)
Q2 Net Income
$80 mln
Q2 Annual Recurring Revenue
$1.90 bln
Q2 Gross Profit
$392 mln
Q2 Operating Expenses
$312 mln
Q2 Operating Income
$80 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 14 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Toast Inc is $46.00, about 7.2% below its August 4 closing price of $49.30

The stock recently traded at 81 times the next 12-month earnings vs. a P/E of 63 three months ago

Press Release: ID:nBw7DcN0Ya

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)