Toast, Inc. Reports Strong Q1 2025 Growth

Toast, Inc. Class A ( (TOST) ) has released its Q1 earnings. Here is a breakdown of the information Toast, Inc. Class A presented to its investors.

Toast, Inc. is a cloud-based digital technology platform designed for the restaurant industry, offering a comprehensive suite of software and financial technology solutions to streamline operations and enhance customer experiences. In its first quarter of 2025, Toast reported significant growth, securing its largest deal with Applebee’s and adding over 6,000 new locations, which contributed to a 31% increase in its annualized recurring run-rate (ARR) to $1.7 billion. The company achieved a net income of $56 million and an adjusted EBITDA of $133 million, marking a strong start to the year.

Key financial highlights included a 31% year-over-year increase in ARR, a 25% rise in total locations to approximately 140,000, and a 22% growth in gross payment volume to $42.2 billion. Toast’s GAAP subscription services and financial technology solutions gross profit rose by 35% to $394 million, while non-GAAP figures showed a 37% increase to $415 million. The company also reported a positive shift from a GAAP loss from operations of $56 million in Q1 2024 to a GAAP income of $43 million in Q1 2025.

Strategically, Toast launched ToastIQ, an intelligence engine aimed at enhancing revenue and operational efficiency for its clients. The company also expanded its enterprise solutions by signing agreements with major brands like Applebee’s and Topgolf, further solidifying its position in the market. Additionally, Toast renewed its credit facility, increasing it to $350 million, which supports its growth initiatives.

Looking ahead, Toast anticipates continued growth in the second quarter and full year of 2025, with expectations of non-GAAP subscription services and financial technology solutions gross profit ranging from $435 million to $445 million for Q2, and $1,775 million to $1,795 million for the full year. Adjusted EBITDA is projected to be between $130 million and $140 million for Q2, and $540 million to $560 million for the full year, reflecting the company’s optimistic outlook on its strategic expansions and financial performance.