Toast(US:TOST)2025-11-04 23:14Financial Performance - As of September 30, 2025, approximately 156,000 Locations partnered with Toast, representing a 23% year-over-year increase, processing approximately $186 billion in gross payment volume (GPV) over the trailing 12 months [86]. - For the three months ended September 30, 2025, gross payment volume (GPV) reached $51.5 billion, a 24% increase from $41.7 billion in the same period of 2024 [90]. - Annualized Recurring Run-Rate (ARR) increased by 30% to $2,016 million for the nine months ended September 30, 2025, compared to $1,554 million in 2024 [90]. - Total revenue for the three months ended September 30, 2025, was $1,633 million, a 25% increase from $1,305 million in the same period of 2024 [96]. - Subscription services revenue for the three months ended September 30, 2025, was $244 million, up 29% from $189 million in 2024 [96]. - Financial technology solutions revenue increased by 26% to $1,345 million for the three months ended September 30, 2025, compared to $1,067 million in 2024 [96]. - For the three months ended September 30, 2025, net income was $105 million, compared to $56 million for the same period in 2024, representing an increase of 87.5% [111]. - Adjusted EBITDA for the three months ended September 30, 2025, was $176 million, up from $113 million in the same period of 2024, reflecting a growth of 55.8% [111]. - 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, indicating a growth of 150.0% [116]. - The net cash provided by operating activities for the nine months ended September 30, 2025, was $467 million, compared to $213 million in 2024, reflecting a growth of 119.7% [116]. Expenses and Costs - Total costs of revenue for the three months ended September 30, 2025, were $1,201 million, a 22% increase from $983 million in 2024 [98]. - Operating expenses for the three months ended September 30, 2025, totaled $348 million, reflecting a 21% increase from $288 million in 2024 [100]. - Sales and marketing expenses rose by 21% to $144 million for the three months ended September 30, 2025, compared to $119 million in 2024 [100]. Shareholder and Capital Information - The company repurchased approximately 2 million shares of Class A common stock for an aggregate amount of $54 million during the nine months ended September 30, 2025 [124]. - As of September 30, 2025, the total fully diluted share count was 629 million, including 587 million Class A and B common stock issued and outstanding [125]. - The company has 21 million options to purchase Class A and B common stock, 17 million unvested restricted stock units, 1 million warrants, and 3 million shares reserved for charitable donations [125]. - The available credit facility increased from $325 million to $346 million as of September 30, 2025, following an amendment to the credit facility [123]. Liquidity and Financial Position - Cash and cash equivalents as of September 30, 2025, totaled $1,357 million, an increase from $903 million as of December 31, 2024 [118]. - The company believes that existing cash and cash equivalents, along with available borrowing capacity, will be sufficient to meet working capital needs for at least the next 12 months [126]. - The company does not anticipate any material changes in liquidity or cash flows in the near term [122]. - There have been no material changes to expected working and other capital requirements since the last annual report [126]. Market and Credit Risk - The company is exposed to financial market risks, including changes in interest rates and foreign currency exchange rates, as well as credit risk on accounts receivable [127]. - The exposure to market and credit risk has not changed materially since the last annual report filed on February 26, 2025 [127]. Other Financial Metrics - The change in fair value of warrant liability for the three months ended September 30, 2025, was $7 million, compared to a loss of $1 million in the same period of 2024, indicating a significant change [103].