Overview

* Toast Q3 2025 revenue beats analyst expectations, net income rises yr/yr

* Company added 7,500 net new locations, boosting ARR by 30% to $2 bln

* Toast expands AI capabilities and strategic partnerships, indicating confidence in growth

Outlook

* Toast expects Q4 non-GAAP gross profit of $480 mln to $490 mln, up 22-25%

* Company projects Q4 adjusted EBITDA between $140 mln and $150 mln

* Toast revises full-year non-GAAP gross profit to $1,865 mln-$1,875 mln, up 32%

* Company raises full-year adjusted EBITDA forecast to $610 mln-$620 mln

Result Drivers

* ARR GROWTH - ARR increased 30% year over year to $2.0 bln, driven by expansion in locations and services

* NEW LOCATIONS - Added approximately 7,500 net new locations in Q3, contributing to ARR growth

* PRODUCT INNOVATION - Launches of Toast IQ and Toast Advertising are aiding revenue increase and efficiency

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $1.63 $1.58

Revenue bln bln (20

Analysts

)

Q3 Net $105 mln

Income

Q3 $2 bln

Annual

Recurrin

g

Revenue

Q3 Gross $432 mln

Profit

Q3 $348 mln

Operatin

g

Expenses

Q3 $84 mln

Operatin

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for Toast Inc ( TOST ) is $48.00, about 25.6% above its November 3 closing price of $35.72

* The stock recently traded at 49 times the next 12-month earnings vs. a P/E of 80 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)