Toast(TOST) - 2025 Q2 - Quarterly Results

Toast Second Quarter 2025 Financial Results Financial and Business Highlights Toast achieved record net new locations, 35% YoY recurring gross profit growth, and $161 million Adjusted EBITDA, alongside international expansion and new product launches - CEO Aman Narang highlighted a strong quarter with a record 8,500 net new locations, 35% YoY growth in recurring gross profit, and Adjusted EBITDA of $161 million[3] Q2 2025 Key Performance Indicators (YoY Growth) | Metric | Q2 2025 Value | YoY Growth | | :--- | :--- | :--- | | Annualized Recurring Run-Rate (ARR) | $1.9 billion | 31% | | Total Locations | ~148,000 | 24% | | Gross Payment Volume (GPV) | $49.9 billion | 23% | | GAAP Recurring Gross Profit¹ | $447 million | 35% | | Non-GAAP Recurring Gross Profit¹ | $464 million | 35% | | GAAP Net Income | $80 million | 471% | | Adjusted EBITDA | $161 million | 75% | | Free Cash Flow | $208 million | 93% | - The company expanded its international presence by launching its first customer in Australia and introduced the new Toast Go® 3 handheld POS device[3][15] - A strategic partnership was announced with American Express to enhance guest experiences and expand reach for restaurants on the Toast, Resy, and Tock networks[15] Business Outlook Toast raised its full-year 2025 guidance, projecting Non-GAAP recurring gross profit of $1,815-$1,835 million and Adjusted EBITDA of $565-$585 million Q3 2025 Outlook | Metric | Q3 2025 Range | YoY Growth | | :--- | :--- | :--- | | Non-GAAP subscription services and financial technology solutions gross profit | $465 million - $475 million | 23% - 26% | | Adjusted EBITDA | $140 million - $150 million | N/A | Full Year 2025 Outlook (Updated) | Metric | Full Year 2025 Range | YoY Growth | Previous Guidance | | :--- | :--- | :--- | :--- | | Non-GAAP subscription services and financial technology solutions gross profit | $1,815 million - $1,835 million | 28% - 29% | 25% - 27% growth | | Adjusted EBITDA | $565 million - $585 million | N/A | $540 million - $560 million | Consolidated Financial Statements The statements show Q2 2025 revenue growth to $1.55 billion, net income of $80 million, total assets of $2.77 billion, and $223 million in operating cash flow Condensed Consolidated Statements of Operations Q2 2025 total revenue grew 25% to $1.55 billion, with gross profit up 37% to $392 million, and net income reaching $80 million Q2 2025 Statement of Operations Highlights (in millions) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | $1,550 | $1,242 | +25% | | Gross Profit | $392 | $286 | +37% | | Income from Operations | $80 | $5 | +1500% | | Net Income | $80 | $14 | +471% | | Diluted EPS | $0.13 | $0.02 | +550% | Condensed Consolidated Balance Sheets Total assets increased to $2.77 billion, driven by $1.19 billion in cash, with total liabilities at $949 million and equity at $1.82 billion Balance Sheet Summary (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $1,194 | $903 | | Total current assets | $2,317 | $1,975 | | Total assets | $2,767 | $2,408 | | Liabilities & Equity | | | | Total current liabilities | $894 | $811 | | Total liabilities | $949 | $863 | | Total stockholders' equity | $1,818 | $1,545 | Condensed Consolidated Statements of Cash Flows Q2 2025 net cash from operating activities rose to $223 million, resulting in Free Cash Flow of $208 million after capital expenditures Cash Flow Highlights (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $223 | $124 | | Capital expenditures | $(15) | $(16) | | Free Cash Flow | $208 | $108 | Key Business Metrics and Non-GAAP Reconciliations This section defines key business metrics like GPV and ARR, and reconciles GAAP to non-GAAP measures such as Adjusted EBITDA and Non-GAAP Gross Profit Key Business Metrics Q2 2025 saw strong growth in key metrics, with GPV up 23% to $49.9 billion and total ARR increasing 31% to $1.93 billion - Key metrics are used to evaluate the business, including GPV for total dollars processed, ARR for subscription and payment services scale, and Locations for unique sites[31][32][33] Key Metrics Performance | Metric | Q2 2025 Value | Q2 2024 Value | YoY Growth | | :--- | :--- | :--- | :--- | | Gross Payment Volume (GPV) | $49.9 billion | $40.5 billion | 23% | | Total ARR | $1,928 million | $1,473 million | 31% | Reconciliation of GAAP to Non-GAAP Measures Non-GAAP results show Q2 2025 Adjusted EBITDA at $161 million, Non-GAAP Recurring Gross Profit at $464 million, and Free Cash Flow at $208 million Adjusted EBITDA Reconciliation (in millions) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income (loss) | $80 | $14 | | Stock-based compensation & related tax | $64 | $70 | | Depreciation and amortization | $16 | $11 | | Other adjustments | $(0) | $7 | | Adjusted EBITDA | $161 | $92 | Non-GAAP Recurring Gross Profit¹ Reconciliation (in millions) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Subscription services gross profit (GAAP) | $163 | $113 | | Financial technology solutions gross profit (GAAP) | $284 | $217 | | Adjustments (Stock-based comp, D&A) | $17 | $14 | | Non-GAAP Recurring Gross Profit | $464 | $344 | Free Cash Flow Reconciliation (in millions) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $223 | $124 | | Capital expenditures | $(15) | $(16) | | Free Cash Flow | $208 | $108 |