Shares of Toast, Inc. (TOST) jumped 5.50% in after-hours trading on Wednesday following the restaurant technology platform's impressive third-quarter earnings report that beat analyst expectations and raised full-year guidance.

Toast reported earnings per share of $0.16, surpassing the analyst estimate of $0.15. Revenue for the quarter came in at $1.633 billion, exceeding the expected $1.583 billion. The company's strong performance was driven by significant growth in key metrics:

• Annualized recurring revenue (ARR) grew 30% year-over-year to over $2.0 billion
• Added approximately 7,500 net new locations, bringing the total to 156,000 globally
• Adjusted EBITDA reached $176 million, showcasing improving profitability

Toast CEO Aman Narang commented on the results, stating, "Toast delivered another strong quarter — ARR grew 30% to over $2.0 billion, Adjusted EBITDA was $176 million, and we added approximately 7,500 net locations and now power 156,000 locations globally."

Adding to investor optimism, Toast raised its full-year 2025 guidance. The company now projects non-GAAP subscription services and financial technology solutions gross profit between $1,865 million and $1,875 million, representing a 32% increase. Toast also expects adjusted EBITDA for the year to be between $610 million and $620 million.

The strong quarterly results and improved outlook, coupled with recent business developments such as the expansion of Toast's AI capabilities, have fueled investor confidence in the company's growth trajectory, leading to the significant after-hours stock price surge.