Core Insights - Toast reported strong growth in Q4 2025, with SaaS ARR and subscription revenue each increasing by 28% year-over-year, and a SaaS net retention rate of 109% driven by upsell and location expansion [1][3][4] Financial Performance - Adjusted EBITDA for 2025 was $633 million, with free cash flow of $608 million, and GAAP operating income rose to $292 million from $16 million the previous year [3] - Recurring gross profit streams increased by 28% in Q4, with total monetization reaching 98 basis points, up 5 basis points from the previous year [2][3] - Payments ARR grew by 24% and fintech gross profit increased by 25% in Q4, with GPV at $51 billion, up 22% year-over-year [7] Growth and Expansion - The company added approximately 30,000 net locations in 2025, ending the year with 164,000 locations and an ARR of over $2 billion [3][6] - Toast's strategic priorities for 2026 include gaining market share in core U.S. SMB and mid-market restaurant businesses, expanding into new markets, and increasing customer adoption of its platform [10][11] AI and Product Innovation - Toast highlighted the rapid adoption of its AI-driven tool, Toast IQ, which has been used by over half of its locations, generating over 1 million queries [6][14] - The company plans to launch a drive-thru product in 2026 and expand its retail capabilities through partnerships, including with Instacart [11][13] 2026 Outlook - For 2026, Toast expects recurring gross profit growth of 20% to 22% and adjusted EBITDA between $775 million and $795 million, despite anticipated cost pressures from tariffs and memory chip prices [5][16] - The company guided for Q1 2026 total fintech and subscription gross profit growth of 22% to 24% year-over-year [17] Capital Allocation - Toast has repurchased approximately 8 million shares for $235 million since initiating its buyback authorization, with an additional $500 million increase to the share repurchase authorization approved [18]