Toast (TOST) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 results with 8,500 net new locations, bringing the total to 148,000, up 24% year-over-year, and processed $49.9B in GPV, up 23% year-over-year.

• Recurring gross profit grew 35% year-over-year, adjusted EBITDA reached $161M, and net income was $80M, up from $14M a year ago.

• ARR grew 31% year-over-year to $1.93B, with SaaS ARR up 30% and subscription revenue up 37%.

• Expanded into new segments and geographies, including Australia, and formed strategic partnerships with American Express and leading brands.

• Launched new products such as Toast Go 3 handheld and ToastIQ AI engine, and recognized as a technology provider to James Beard Award-winning restaurants.

Financial highlights

• Q2 2025 revenue was $1.55B, up 25% year-over-year; subscription services revenue grew 37% to $227M, and financial technology solutions revenue rose 25% to $1.28B.

• Gross profit for Q2 2025 was $392M, up from $286M in Q2 2024; gross margin improved to 25.3%.

• Adjusted EBITDA for Q2 2025 was $161M, up from $24M in Q2 2024, with a margin of 35%.

• Free cash flow was $208M in Q2 2025, up from $108M in Q2 2024, and $277M for the first half of 2025.

• GPV reached $49.9B in Q2 2025, with GPV per location down 1%.

Outlook and guidance

• Full-year 2025 guidance raised: expecting 28–29% growth in FinTech and subscription gross profit and $575M adjusted EBITDA (32% margin).

• Q3 2025 guidance: subscription and FinTech gross profit of $465M–$475M (23–26% growth YoY); adjusted EBITDA of $140M–$150M.

• Q4 margin expected to be lower due to payment seasonality and higher tariff expenses.

• Management expects seasonality to continue impacting financial technology solutions revenue, with stronger results in Q2 and Q3.

• Existing cash, equivalents, and available credit are expected to meet working capital needs for at least the next 12 months.