Shares of Toast, Inc. (TOST) are soaring 13.04% in early trading on Friday, building on the previous day's gains, as investors react enthusiastically to the restaurant technology company's impressive first-quarter 2025 results, raised full-year guidance, and a significant new partnership announcement.

Toast reported adjusted earnings of 9 cents per share for Q1 2025, matching analyst expectations and showing substantial improvement from the 15 cents per share loss in the same quarter last year. Revenue increased by 24.4% to $1.34 billion, aligning with projections. The company also posted a quarterly net income of $56 million, demonstrating its ability to generate profit in a competitive market. Key operational metrics were equally impressive, with Annual Recurring Revenue (ARR) growing 31% year-over-year to $1.7 billion, while the total number of locations increased by 25% to approximately 140,000.

Adding to investor enthusiasm, Toast raised its fiscal year 2025 adjusted EBITDA guidance to $540-$560 million, up from the previous forecast of $510-$530 million. The company also announced a significant agreement with Topgolf to implement Toast Enterprise Solutions across its U.S. venues, expanding its presence in the enterprise segment. Wall Street analysts have responded positively, with several firms, including KBW, Morgan Stanley, and Mizuho, raising their price targets for Toast. As the company continues to expand its platform and scale globally, the market appears increasingly optimistic about Toast's growth prospects in the restaurant technology sector.