Financial Data and Key Metrics Changes - The company achieved 34% top-line growth and 35% margins in Q3 2025, surpassing $2 billion in ARR for the first time, doubling from $1 billion in just two years [6][21] - Total fintech and subscription gross profit increased by 34% year-over-year, with adjusted EBITDA of $176 million and margins expanding by 5 percentage points to 35% [23][27] - GAAP operating income was $84 million, up from $34 million a year ago, with free cash flow growing to $153 million in Q3 [27][29] Business Line Data and Key Metrics Changes - SaaS ARR grew 28% year-over-year, driven by location growth and a mid-single-digit increase in SaaS ARPU [24] - Payments ARR increased by 31%, with fintech gross profit growing by 35% in Q3 compared to the previous year [24][25] - The company added approximately 7,500 net locations in Q3, ending the quarter with a total of 156,000 locations, a 23% increase from a year ago [24] Market Data and Key Metrics Changes - International SaaS ARPU increased by 20% year-over-year, indicating strong traction in international markets [12] - GPV (Gross Payment Volume) was $52 billion, growing 24% year-over-year, with GPV per location slightly up due to stronger same-store sales trends [24][25] Company Strategy and Development Direction - The company aims to double its market share in the core U.S. SMB business and expand into new verticals and geographies [7][9] - Key priorities include scaling locations, demonstrating growth in new markets, increasing customer adoption of the platform, and investing with discipline while expanding margins [9][18] - The company is focused on building a durable growth business that can scale to $5 billion and $10 billion in ARR over time [8][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain strong growth and expand adjusted EBITDA margins, with expectations for continued net adds in 2025 and 2026 [20][29] - The management noted that restaurants tend to be resilient even in challenging economic conditions, with customers performing well [55][56] Other Important Information - The company has secured partnerships with major brands like Uber and Nordstrom, enhancing its market presence [8][12] - The company is investing in AI-driven capabilities, such as Toast IQ, to improve customer experience and operational efficiency [15][16] Q&A Session Summary Question: About GPV per location performance - Management noted that GPV per location exceeded expectations in Q3, attributing part of the success to the platform's ability to help restaurants run more profitable businesses [34][35] Question: Concerns about competition and market share sustainability - Management highlighted that win rates against major competitors are up year-over-year, and they are on track to double market share in the core market [38][39] Question: Opportunities with consumer engagement - Management discussed the potential of their dense network of restaurants to enhance consumer experiences and drive new product offerings [47][50] Question: Performance during AWS outage - Management confirmed that the business held up well during the AWS outage, allowing customers to operate offline and process orders once the system was restored [65][68] Question: Sustainability of the take rate increase - Management expressed confidence in the ability to drive take rate up over time through targeted pricing moves and cost optimization [72][74] Question: Financial impact of Toast IQ adoption - Management emphasized that the focus is currently on driving adoption and customer value, with monetization strategies being explored for the future [80][83] Question: Confidence in increased net adds for 2026 - Management indicated that new TAMs (Total Addressable Markets) are expected to contribute significantly to net adds, alongside continued performance in the core business [92][94]