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Mar 31, 2025
Toast Q1 2025 Earnings Report
Toast reported a profitable Q1 2025 with strong revenue growth, record ARR, and over 6,000 new restaurant locations added.
Key Takeaways
Toast delivered strong first-quarter performance driven by significant growth in ARR, profitability metrics, and expansion into enterprise accounts like Applebee’s and Topgolf.
Net income reached $56 million, a turnaround from a loss of $83 million last year.
Adjusted EBITDA more than doubled year-over-year to $133 million.
Annualized Recurring Run-Rate (ARR) rose 31% to $1.7 billion.
Toast added over 6,000 net new restaurant locations in Q1.
Revenue by Segment
Forward Guidance
Toast expects continued growth with robust ARR and profitability through 2025, driven by enterprise wins and expansion of new verticals.
Positive Outlook
- Q2 Non-GAAP gross profit guidance: $435M–$445M
- Q2 Adjusted EBITDA forecast: $130M–$140M
- FY2025 gross profit guidance raised to $1.775B–$1.795B
- FY2025 Adjusted EBITDA guidance increased to $540M–$560M
- Strong growth expected from Applebee’s and Topgolf deals
Challenges Ahead
- Macroeconomic risks could impact restaurant industry spend
- Stock-based comp remains a significant cost item
- Competition in POS and fintech for restaurants remains intense
- Hardware segment continues to operate at a loss
- International and retail verticals still early-stage
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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