Shares of Toast, Inc. (TOST) are soaring 8.16% in pre-market trading on Friday, building on the previous day's 7.78% gain. The restaurant technology company's stock surge comes on the heels of impressive first-quarter 2025 financial 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.

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. This upward revision signals management's confidence in the company's growth trajectory. Furthermore, Toast announced a significant agreement with Topgolf to implement Toast Enterprise Solutions across its U.S. venues, expanding its presence in the enterprise segment.

The strong quarterly performance was underpinned by impressive operational metrics. Annual Recurring Revenue (ARR) grew 31% year-over-year to $1.7 billion, while the total number of locations increased by 25% to approximately 140,000. Gross Payment Volume (GPV) also saw a 22% year-over-year increase to $42.2 billion. In response to these positive developments, KBW raised its target price for Toast from $40 to $42, further boosting investor confidence. As Toast continues to expand its platform and scale globally, the market appears optimistic about the company's growth prospects in the restaurant technology sector.