Toast shares edge lower after missing Q1 estimates

Published 08/05/2025, 21:24
Toast shares edge lower after missing Q1 estimates

BOSTON - Toast Inc. (NYSE:TOST) reported first quarter revenue growth of 24% year-over-year, though earnings missed estimates, as the restaurant technology company raised its full-year outlook.

TOST shares fell slightly, by 0.8%, in after hours trading Thursday.

Toast posted Q1 revenue of $1.34 billion, up from $1.08 billion a year ago but slightly below analyst expectations of $1.35 billion. Adjusted earnings per share came in at $0.09, missing the $0.18 estimate.

However, Toast boosted its 2025 guidance, now expecting non-GAAP subscription services and financial technology solutions gross profit of $1.78-$1.80 billion, up from its prior outlook of $1.73-$1.76 billion. The company also raised its full-year adjusted EBITDA forecast to $540-$560 million from $510-$530 million previously.

"Toast kicked off the year with a fantastic first quarter - we added over 6,000 net new locations, grew our recurring gross profit streams 37%, and delivered $133 million in Adjusted EBITDA," said Toast CEO and Co-Founder Aman Narang.

The company reported annualized recurring revenue (ARR) of $1.7 billion as of March 31, up 31% YoY. Total (EPA:TTEF) locations increased 25% to approximately 140,000.

For Q2, Toast expects non-GAAP subscription services and financial technology solutions gross profit of $435-$445 million and adjusted EBITDA of $130-$140 million.

Toast also announced it signed an agreement with Applebee’s to implement its technology across U.S. locations, representing the company’s largest deal to date.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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