Financial Data and Key Metrics Changes - In Q2 2025, the company reported a 31% growth in Annual Recurring Revenue (ARR) and a 35% increase in total FinTech and subscription gross profit year over year [25][27] - Adjusted EBITDA reached $161 million with margins expanding by 8 percentage points year over year to 35% [25][26] - GAAP operating income was $80 million, significantly up from $14 million a year ago [33] Business Line Data and Key Metrics Changes - The company added a record 8,500 net new locations, ending Q2 with 148,000 locations, a 24% increase from the previous year [27] - SaaS ARR grew by 30% year over year, driven by location growth and a 5% increase in SaaS ARPU [29] - Payments ARR increased by 32%, while FinTech gross profit grew by 30% in Q2 [30] Market Data and Key Metrics Changes - The company crossed 10,000 live locations across enterprise, food and beverage retail, and international markets [27][15] - Total Gross Payment Volume (GPV) was $50 billion, growing 23% year over year, with GPV per location down 1% [30] - The net take rate for FinTech was 57 basis points, and for Payments, it was 49 basis points, both showing a slight increase from the previous year [30] Company Strategy and Development Direction - The company aims to scale locations and market share in its core US restaurant business while expanding into new customer segments [11][12] - Key priorities include increasing customer adoption of the platform, driving differentiation through data and AI, and investing in high-priority areas while gradually expanding margins [11][12][23] - The partnership with American Express aims to enhance customer experiences and broaden the platform's capabilities [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth opportunities, citing strong execution and market share gains [9][23] - The company plans to continue investing in its core business and new segments, with expectations for sustained long-term growth [28][36] - Management acknowledged the impact of tariffs and seasonal dynamics on margins in the second half of the year [55][36] Other Important Information - The company launched in Australia, marking its fourth international market, and plans to leverage learnings from previous launches [10][18] - The introduction of Toast Go 3 and Toast IQ reflects the company's commitment to innovation and enhancing customer service [20][32] Q&A Session Summary Question: Can you provide context on retail ARPUs and product enhancements? - Management highlighted that retail ARPU is over $10,000, indicating strong growth potential and ongoing investments in sales capacity [41][42] Question: What are the trends in GPV per location? - Management noted that GPV trends have been largely flat, with a slight decrease in GPV per location, but expressed confidence in unit economics across segments [47][48] Question: Can you elaborate on the expected EBITDA for Q3? - Management indicated that increased investments and tariff expenses would impact margins, but emphasized the importance of these investments for long-term growth [54][55] Question: How does the Amex partnership enhance the business? - The partnership aims to create personalized dining experiences by integrating reservation listings and leveraging customer data [118] Question: What feedback has been received on the AI-powered assistant, SUSHAF? - Positive customer feedback has been received, with the product providing valuable insights and recommendations for restaurant operators [124]