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BOSTON - Toast Inc. (NYSE:TOST) shares were down 9% after the restaurant technology platform reported second-quarter revenue that exceeded analyst expectations and raised its full-year guidance, while earnings missed estimates.
The company reported revenue of $1.55 billion for the second quarter, surpassing the consensus estimate of $1.52 billion and representing a 25% increase YoY. However, adjusted earnings per share came in at $0.13, falling short of the $0.22 analyst estimate.
Toast added a record 8,500 net new locations during the quarter, bringing its total to approximately 148,000 locations, a 24% increase from the previous year. The company’s gross payment volume increased 23% YoY to $49.9 billion, while annualized recurring run-rate grew 31% to $1.9 billion.
"I’m proud of the team for delivering another strong quarter - we added a record 8,500 net new locations, recurring gross profit grew 35% year over year, and Adjusted EBITDA scaled to $161 million," said Aman Narang, Toast CEO and Co-Founder.
The company raised its full-year outlook, now expecting non-GAAP subscription services and financial technology solutions gross profit between $1.815 billion and $1.835 billion, representing 28-29% growth compared to 2024, up from its previous guidance of 25-27% growth. Toast also increased its adjusted EBITDA forecast to between $565 million and $585 million, up from $540 million to $560 million.
For the third quarter, Toast expects non-GAAP subscription services and financial technology solutions gross profit of $465 million to $475 million and adjusted EBITDA between $140 million and $150 million.
The company also announced a strategic multi-year partnership with American Express (NYSE:AXP) aimed at helping drive more guests to restaurants and enhancing personalized hospitality experiences.
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