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Sep 30
Toast Q3 2025 Earnings Report
Toast reported strong financial results for the third quarter ended September 30, 2025, with significant growth in ARR, Adjusted EBITDA, and net new locations.
Key Takeaways
Toast delivered a robust third quarter, exceeding $2.0 billion in ARR and achieving $176 million in Adjusted EBITDA. The company expanded its reach by adding approximately 7,500 net new locations, bringing its total to 156,000 globally. This performance highlights Toast's continued leadership in the restaurant technology sector and its strategic investments in platform innovation and AI.
Annualized Recurring Run-rate (ARR) grew 30% year-over-year, surpassing $2.0 billion as of September 30, 2025.
Adjusted EBITDA reached $176 million in Q3 2025, demonstrating strong profitability.
Toast added approximately 7,500 net new locations, increasing its total to 156,000 locations globally.
GAAP net income was $105 million, a significant increase from $56 million in the prior year's quarter.
Toast
Toast
Toast Revenue by Segment
Revenue by Segment
Subscription services Revenue
CapyFin.comFinancial technology solutions Revenue
CapyFin.comHardware Revenue
CapyFin.com Forward Guidance
Toast provided an optimistic outlook for the fourth quarter and full year 2025, expecting continued growth in Non-GAAP subscription services and financial technology solutions gross profit and Adjusted EBITDA.
Positive Outlook
- Q4 2025 Non-GAAP subscription services and financial technology solutions gross profit expected to be between $480 million and $490 million (22-25% growth year-over-year).
- Q4 2025 Adjusted EBITDA expected to be between $140 million and $150 million.
- Full year 2025 Non-GAAP subscription services and financial technology solutions gross profit expected to be between $1,865 million and $1,875 million (32% growth year-over-year, up from previous guidance of 28-29%).
- Full year 2025 Adjusted EBITDA expected to be between $610 million and $620 million (up from previous guidance of $565 million to $585 million).
- Continued expansion of leadership across U.S. restaurants, scaling in new markets, and further expanding Total Addressable Market (TAM).
Challenges Ahead
- A reconciliation of forward-looking Non-GAAP measures to corresponding GAAP measures is not available without unreasonable effort.
- Inherent difficulty in accurately forecasting the occurrence and financial impact of various adjusting items for GAAP reconciliations.
- The company is unable to assess the probable significance of unavailable information, which could materially impact future GAAP financial results.
- Forward-looking statements are subject to certain risks, uncertainties, and other factors, many of which are outside Toast’s control.
- Actual results and outcomes may differ materially from what is expressed or forecast in forward-looking statements.
Revenue & Expenses
Visualization of income flow from segment revenue to net income