Shares of Toast, Inc. (TOST) are surging 8.16% in pre-market trading on Friday, following the restaurant technology company's impressive first-quarter 2025 financial results and raised guidance. The strong performance and strategic moves have sparked investor enthusiasm, building on the 7.78% gain seen in Thursday's regular trading session.

Toast reported adjusted earnings of 9 cents per share for the quarter ended March 31, matching analyst expectations and marking a significant improvement from the 15 cents per share loss in the same quarter last year. Revenue rose 24.4% to $1.34 billion, aligning with projections. The company demonstrated robust growth across key metrics, with Annual Recurring Revenue (ARR) reaching $1.7 billion, up 31% year-over-year. Total Locations increased 25% to approximately 140,000, while Gross Payment Volume (GPV) grew 22% to $42.2 billion.

Adding to the positive sentiment, Toast raised its fiscal year 2025 adjusted EBITDA guidance to $540 million-$560 million from the previous $510 million-$530 million. This upward revision reflects the company's confidence in its growth trajectory and operational efficiency. Furthermore, Toast announced a new agreement with Topgolf to implement Toast Enterprise Solutions across its venues in the United States, showcasing the company's expanding reach in the hospitality sector.

Wall Street maintains a bullish outlook on Toast, with the current average analyst rating at "buy". Following the earnings report, KBW raised its target price for Toast from $40 to $42, further bolstering investor confidence. As Toast continues to innovate and expand its platform, investors appear optimistic about the company's potential for sustained growth in the restaurant technology sector.