Toast (TOST) Q3 2025 earnings summary

Executive summary

• Achieved 34% top-line growth and 35% margins in Q3 2025, with ARR surpassing $2 billion, doubling from $1 billion in two years, and continued year-over-year growth in net location adds.

• Secured marquee wins with Nordstrom, TGI Fridays, Everbowl, and expanded partnership with Uber, while launching AI-driven products like Toast IQ and Toast Advertising.

• Net income for Q3 2025 was $105 million, up from $56 million in Q3 2024; Adjusted EBITDA reached $176 million (35% margin), both showing significant year-over-year growth.

• Strong momentum in core U.S. SMB and mid-market restaurant business, with international SaaS ARPU up 20% year-over-year and expansion into new verticals and geographies.

• Approximately 156,000 locations were live on the platform as of September 30, 2025, up 23% year-over-year.

Financial highlights

• ARR grew 30% year-over-year to $2.02 billion; total fintech and subscription gross profit increased 34% with a total take rate of 98 basis points, up 7 bps from last year.

• Adjusted EBITDA was $176 million for Q3, with margins expanding 5 percentage points year-over-year to 35%.

• GAAP operating income was $84 million, up from $34 million a year ago.

• Free cash flow reached $153 million in Q3 and $564 million on a trailing 12-month basis.

• Gross Payment Volume (GPV) was $52 billion, up 24% year-over-year; SaaS ARR grew 28%, Payments ARR increased 31%.

Outlook and guidance

• Q4 guidance: fintech and subscription gross profit to grow 22%-25% year-over-year; adjusted EBITDA expected at $140-$150 million.

• Raised full-year outlook: 32% growth in fintech and subscription gross profit and $615 million in adjusted EBITDA.

• For 2026, expect growth over 20% at multi-billion dollar scale, with margins flat to slightly up year-over-year.

• Management expects financial technology solutions revenue to remain a significant portion of the overall revenue mix, with seasonality continuing to impact results.

• Existing cash, cash equivalents, and available borrowing capacity are expected to be sufficient for at least the next 12 months.