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Jun 30, 2025
Toast Q2 2025 Earnings Report
Toast reported strong financial results for the second quarter ended June 30, 2025, with record net new locations, significant growth in recurring gross profit, and scaled Adjusted EBITDA.
Key Takeaways
Toast delivered a strong second quarter in 2025, marked by a record 8,500 net new locations, a 35% year-over-year growth in recurring gross profit, and Adjusted EBITDA reaching $161 million. The company also announced a strategic multi-year partnership with American Express and expanded its international presence by launching its first customer in Australia.
Toast added a record 8,500 net new locations in Q2 2025, demonstrating strong customer acquisition.
Annualized Recurring Run-rate (ARR) grew 31% year-over-year to $1.9 billion as of June 30, 2025.
Adjusted EBITDA significantly scaled to $161 million in Q2 2025, up from $92 million in Q2 2024.
Toast entered a strategic multi-year partnership with American Express and expanded internationally with its first customer in Australia.
Revenue by Segment
Forward Guidance
For Q3 2025, Toast expects Non-GAAP subscription services and financial technology solutions gross profit between $465 million and $475 million, and Adjusted EBITDA between $140 million and $150 million. For the full year 2025, the company anticipates Non-GAAP subscription services and financial technology solutions gross profit in the range of $1,815 million to $1,835 million, and Adjusted EBITDA between $565 million and $585 million.
Positive Outlook
- Expected Non-GAAP subscription services and financial technology solutions gross profit growth of 23-26% for Q3 2025 compared to Q3 2024.
- Increased full-year 2025 Non-GAAP subscription services and financial technology solutions gross profit guidance to $1,815 million - $1,835 million (28-29% growth).
- Raised full-year 2025 Adjusted EBITDA guidance to $565 million - $585 million.
- Continued strong performance in core U.S. restaurant business and new market segments.
- Expansion into new international markets like Australia and moving upmarket with larger chains.
Challenges Ahead
- Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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