Toast(US:TOST)2026-02-12 21:12Financial Performance - Annualized recurring run-rate (ARR) increased 26% year over year to over $2.0 billion as of December 31, 2025[6] - Fourth quarter net income was $101 million, compared to $33 million in Q4 2024, and Adjusted EBITDA was $163 million, up from $111 million in Q4 2024[6] - For the full year 2025, GAAP net income was $342 million, compared to $19 million in 2024[6] - Net income for the year ended December 31, 2025, was $342 million, significantly higher than $19 million in 2024, marking a year-over-year increase of 1694.7%[23] - Cash flows from operating activities for the year ended December 31, 2025, were $661 million, compared to $360 million in 2024, reflecting an increase of 83.6%[23] - Adjusted EBITDA for Q4 2025 was $163 million, compared to $111 million in Q4 2024, with total Adjusted EBITDA for the year at $633 million, up from $373 million in 2024[34] - Total Annualized Recurring Run-Rate (ARR) reached $2,047 million in 2025, a 26% increase from $1,626 million in 2024[34] Revenue and Profitability - GAAP subscription services and financial technology solutions gross profit was up 29% year over year to $487 million[6] - Subscription services gross profit for Q4 2025 was $189 million, up from $140 million in Q4 2024, with total gross profit for the year at $672 million, compared to $487 million in 2024[37] - Financial technology solutions gross profit for Q4 2025 was $298 million, an increase from $238 million in Q4 2024, with total gross profit for the year at $1,146 million, up from $878 million[38] Growth Metrics - Total locations increased 22% year over year to approximately 164,000[6] - Gross Payment Volume (GPV) increased 22% year over year to $51.4 billion in Q4 2025[6] - Payments Annualized Recurring Run-Rate (ARR) increased to $986 million in 2025, representing a 24% growth from $794 million in 2024, while Subscription ARR grew by 28% to $1,061 million from $832 million[34] - Gross Payment Volume (GPV) for Q4 2025 reached $51.4 billion, a 22% increase from $42.2 billion in Q4 2024, with total GPV for the year at $195.1 billion, up 23% from $159.1 billion in 2024[34] Assets and Equity - Total assets increased to $3,145 million in 2025, up from $2,408 million in 2024, representing a growth of 30.6%[21] - Total stockholders' equity rose to $2,124 million in 2025, up from $1,545 million in 2024, indicating a growth of 37.4%[21] - Cash and cash equivalents at the end of the period were $1,353 million in 2025, compared to $903 million in 2024, an increase of 49.8%[23] - The total cash, cash equivalents, cash held on behalf of customers, and restricted cash at the end of the period was $1,583 million in 2025, compared to $1,085 million in 2024, an increase of 46%[23] - The company’s accumulated deficit decreased to $(1,262) million in 2025 from $(1,604) million in 2024, showing an improvement of 21.4%[21] Expenses and Liabilities - The company reported a total current liabilities of $969 million in 2025, up from $811 million in 2024, which is an increase of 19.5%[21] - The company’s capital expenditures for the year ended December 31, 2025, were $53 million, slightly down from $54 million in 2024[23] - Research and development expenses for Q4 2025 were $97 million, slightly up from $93 million in Q4 2024, with total expenses for the year at $374 million, compared to $351 million in 2024[41] - General and administrative expenses for Q4 2025 were $84 million, compared to $78 million in Q4 2024, with total expenses for the year at $344 million, up from $307 million[42] Strategic Initiatives - Toast's Board of Directors authorized a $500 million increase to the share repurchase program[1] - Toast signed an agreement with MTY Food Group to roll out Toast across more than 1,000 Papa Murphy's US locations, expanding its existing relationship with MTY[12] Cash Flow - Free cash flow for Q4 2025 was $178 million, compared to $134 million in Q4 2024, with total free cash flow for the year at $608 million, up from $306 million[42] - Non-GAAP costs of revenue for Q4 2025 were $1,188 million, compared to $984 million in Q4 2024, with total costs for the year at $4,463 million, up from $3,689 million[36] - Non-GAAP subscription services and financial technology solutions gross profit is expected to be in the range of $505 million to $515 million for Q1 2026, representing 22-24% growth compared to Q1 2025[11]