In This Article:
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Net Location Additions: Over 6,000 net locations added in Q1 2025.
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Total Locations: Approximately 140,000 locations, up 25% year over year.
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Adjusted EBITDA: $133 million, with margins expanding 13 percentage points year over year to 32%.
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GAAP Operating Income: $43 million.
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Annual Recurring Revenue (ARR): Grew 31% year over year.
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Recurring Gross Profit Streams: Increased 37% year over year.
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SaaS ARR Growth: 32% year over year.
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Subscription Revenue Growth: Increased 38% with gross profit growing 45%.
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Payments ARR Growth: 31% in Q1 2025.
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Gross Payment Volume (GPV): $42 billion, growing 22% year over year.
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Net Take Rate: 59 basis points, with Payments net take rate at 48 basis points.
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Free Cash Flow: $69 million.
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Share Repurchase: $17 million in shares repurchased in Q1 2025.
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Q2 2025 Guidance: Subscription and fintech gross profit growth expected in the 26% to 29% range year over year; adjusted EBITDA expected to be $130 million to $140 million.
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Full-Year 2025 Outlook: 26% growth in fintech and subscription gross profit; $550 million in adjusted EBITDA with a margin of 31%.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Toast Inc (NYSE:TOST) added over 6,000 net locations in Q1 2025, demonstrating strong growth momentum.
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Adjusted EBITDA grew to $133 million, with margins expanding 13 percentage points year over year to 32%.
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The company secured marquee wins with large enterprises like Applebee's and Topgolf, showcasing its ability to serve complex operations.
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Toast Inc (NYSE:TOST) is expanding its international presence and new market segments, with plans to cross 10,000 locations in these areas by the end of 2025.
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The introduction of AI-driven tools like sous chef and ToastIQ is expected to enhance customer experience and operational efficiency.
Negative Points
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The macroeconomic environment remains dynamic, posing potential challenges to consumer trends and business operations.
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GPV per location was down 3% year over year, indicating potential pressure on transaction volumes.
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The company faces competition from partners like DoorDash, which is expanding its own POS system offerings.
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Tariff-related hardware expenses are expected to be slightly higher, impacting cost structures.
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The company must balance pricing strategies carefully in a challenging macroeconomic environment to maintain customer satisfaction.
Q & A Highlights
Q: Can you discuss the payback periods for large enterprise wins like Applebee's and how they compare to overall payback periods? A: Elena Gomez, CFO: We're excited about Applebee's joining Toast. For enterprise deals, the paybacks are very attractive due to the large ARR booked. We manage the business on total payback periods and unit economics, focusing on growth. Enterprise deals have healthy LTV to CAC ratios, and churn tends to be lower, making it a healthy business for us.