Overview

* Toast Q2 2025 revenue of $1.55 bln beats analyst expectations, per LSEG data

* Net income for Q2 2025 rises to $80 mln from $14 mln last year

* ARR grows 31% yr/yr to $1.9 bln, reflecting robust expansion

* Co enters strategic partnership with American Express to enhance hospitality

Outlook

* Toast expects Q3 non-GAAP gross profit of $465 mln to $475 mln

* Company anticipates Q3 adjusted EBITDA of $140 mln to $150 mln

* Toast projects full-year gross profit of $1,815 mln to $1,835 mln

* Company forecasts full-year adjusted EBITDA of $565 mln to $585 mln

Result Drivers

* NEW LOCATIONS - Toast added a record 8,500 net new locations, boosting ARR by 31% to $1.9 bln

* INTERNATIONAL EXPANSION - Launch of operations in Australia and growth in enterprise segments contributed to results

* PRODUCT INNOVATION - Introduction of Toast Go 3 handheld device aimed at improving service efficiency

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $1.55 $1.52

Revenue bln bln (19

Analysts

)

Q2 Net $80 mln

Income

Q2 $1.90

Annual bln

Recurrin

g

Revenue

Q2 Gross $392 mln

Profit

Q2 $312 mln

Operatin

g

Expenses

Q2 $80 mln

Operatin

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 14 "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 $46.00, about 7.2% below its August 4 closing price of $49.30

* The stock recently traded at 81 times the next 12-month earnings vs. a P/E of 63 three months ago

Press Release:

(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.)