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.)