Toast(US:TOST)2025-11-04 21:11Financial Performance - ARR increased 30% year over year to over $2.0 billion as of September 30, 2025[7] - Gross Payment Volume (GPV) increased 24% year over year to $51.5 billion[7] - Adjusted EBITDA was $176 million in Q3 2025, compared to $113 million in Q3 2024[7] - Net income for the three months ended September 30, 2025, was $105 million, compared to $56 million for the same period in 2024, reflecting an increase of 87.5%[22] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $467 million, significantly higher than $213 million for the same period in 2024, marking a 119.3% increase[22] - Cash and cash equivalents rose to $1,605 million at the end of the period, compared to $944 million at the end of the previous year, an increase of 69.8%[22] - Adjusted EBITDA for the full year 2025 is projected to be in the range of $610 million to $620 million, up from previous guidance[9] - Net income for the nine months ended September 30, 2025, was $241 million, a turnaround from a net loss of $13 million in the same period of 2024[33] - Free cash flow for the nine months ended September 30, 2025, was $430 million, significantly higher than $172 million in the same period of 2024[39] Growth Metrics - Total locations increased 23% year over year to approximately 156,000[7] - GAAP subscription services and financial technology solutions gross profit grew 34% year over year to $490 million[7] - Non-GAAP subscription services and financial technology solutions gross profit expected in the range of $1,865 million to $1,875 million for the full year 2025, representing 32% growth compared to 2024[6] - Total Annualized Recurring Run-Rate (ARR) increased to $2,016 million in 2025, up 30% from $1,554 million in 2024[33] - Payments Annualized Recurring Run-Rate rose to $1,014 million, reflecting a 31% growth compared to $774 million in 2024[33] - Subscription Annualized Recurring Run-Rate reached $1,002 million, a 28% increase from $780 million in the previous year[33] Strategic Initiatives - Toast launched Toast IQ, an AI assistant for restaurants, and partnered with The Coca-Cola Company to enhance beverage sales[14] - Toast signed large-scale operators like Nordstrom and TGI Fridays to its platform, expanding its market presence[14] - A multi-year strategic partnership with Uber Technologies, Inc. was announced to enhance digital ordering operations for restaurants[14] - The company continues to focus on enhancing its product offerings and expanding market presence through strategic initiatives and potential acquisitions[23] Asset and Liability Overview - Total assets increased to $2,971 million as of September 30, 2025, up from $2,408 million at December 31, 2024, representing a growth of 23.4%[20] - Total liabilities increased to $957 million as of September 30, 2025, from $863 million at December 31, 2024, a rise of 10.9%[20] - The company reported a total stockholders' equity of $2,014 million, up from $1,545 million, indicating a growth of 30.4%[20] Operational Metrics - The number of live locations using Toast Point of Sale increased, contributing to the overall growth in transaction volumes[30] - Adjusted EBITDA for the nine months ended September 30, 2025, was not specified but is a key metric used to evaluate core operating performance[25] - Non-GAAP Subscription Services Gross Profit for Q3 2025 was $192 million, up from $146 million in Q3 2024[35] - Non-GAAP Financial Technology Solutions Gross Profit for Q3 2025 was $313 million, compared to $232 million in Q3 2024[36] - Sales and marketing expenses for Q3 2025 totaled $128 million, an increase from $105 million in Q3 2024[39]