Toast Announces Fourth Quarter and Full Year 2025 Financial Results
BOSTON--( BUSINESS WIRE)--Toast (NYSE: TOST), the all-in-one digital technology platform built for hospitality, today reported financial results for the fourth quarter and full year ended December 31, 2025.
“2025 was a strong year for Toast, adding a record 30,000 net locations, growing recurring gross profit 1 33%, and delivering Adjusted EBITDA margins of 34%,” said Toast CEO Aman Narang. “Our results demonstrate the power of our focused strategy and consistent execution. We have momentum across the business — we’re scaling our core restaurant business, accelerating growth in new markets, increasing platform adoption, and investing with focus. We’re confident we’re building a platform that can serve many multiples of our current locations and scale to $5 billion and $10 billion in ARR over the next decade.”
Financial Highlights for the Fourth Quarter of 2025
Financial Highlights for the Full Year 2025
Percentages may not tie due to rounding. For more information on the non-GAAP financial measures and key metrics discussed in this press release, please see the sections titled “Non-GAAP Financial Measures” and “Key Business Metrics,” as well as the reconciliations of non-GAAP financial measures to their nearest comparable GAAP financial measures at the end of this press release.
Outlook 2
For the first quarter ending March 31, 2026, Toast expects to report:
For the full year ending December 31, 2026, Toast expects to report:
The outlook provided above constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks. See cautionary note regarding “Forward-looking Statements” in this press release.
Share Repurchase Program
On February 10, 2026, Toast’s Board of Directors authorized an increase of $500 million to Toast’s previously authorized share repurchase program for the repurchase of shares of the Company’s Class A common stock. The Company intends to opportunistically repurchase shares based on market conditions.
Recent Business Highlights
1 Toast considers Non-GAAP subscription services and financial technology solutions gross profit to be its recurring gross profit streams.
2 A reconciliation of these forward looking Non-GAAP measures to the corresponding GAAP measure is not available without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliations that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to the change in fair value of our warrant liability and stock-based compensation. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results.
*Indicates early development and early release features.
Conference Call Information
Toast will host a live conference call at 5:00 p.m. Eastern Time on Thursday, February 12, 2026. The live webcast of the conference call can be accessed through Toast’s investor relations website at http://investors.toasttab.com. A replay of the webcast will be available for a period of 90 days after the call.
Toast has used, and intends to continue to use, its Investor Relations website ( http://investors.toasttab.com), as well as the Toast Newsroom ( https://pos.toasttab.com/news), as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Information on or that can be accessed through Toast’s Investor Relations website, or that is contained in any website to which a hyperlink is provided herein is not part of this press release, and the inclusion of Toast’s Investor Relations website address, and any hyperlinks are only inactive textual references.
About Toast
Toast is a cloud-based, all-in-one digital technology platform purpose-built for the entire restaurant community. Toast provides a comprehensive platform of software as a service (SaaS) products and financial technology solutions that give restaurants everything they need to run their business across point of sale, payments, operations, digital ordering and delivery, marketing and loyalty, and team management. We serve as the restaurant operating system, connecting front of house and back of house operations across service models including dine-in, takeout, delivery, catering, and retail. Toast helps restaurants streamline operations, increase revenue and deliver amazing guest experiences. For more information, visit www.toasttab.com.
Forward-looking Statements
This press release contains “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statement and generally arise when Toast or its management is discussing its beliefs, estimates or expectations. Such statements generally include the words “believes,” “plans,” “intends,” “targets,” “may,” “could,” “should,” “will,” “expects,” “estimates,” “suggests,” “anticipates,” “outlook,” “continues,” or similar expressions. These statements are not historical facts or guarantees of future performance, but represent the beliefs of Toast and its management at the time the statements were made regarding future events which are subject to certain risks, uncertainties and other factors, many of which are outside Toast’s control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. Forward-looking statements include, without limitation, statements about expected financial positions or growth; results of operations and future operating results; cash flows; guidance on financial results for the first fiscal quarter and full year of 2026; the expectations of demand for Toast’s products and growth of its business; the growth rates in the markets in which Toast competes; Toast’s investments in technology and infrastructure; arrangements between Toast and its customers, including the planned and future implementation of the Toast platform at such customers’ locations; Toast’s business relationship with its partners; Toast’s ability to deliver innovative solutions; the intended benefits of Toast’s products and features; Toast’s ability to attract and retain customers; statements regarding Toast’s share repurchase program; financing plans; business strategy; operating plans; competitive positions; and growth opportunities for existing products and new markets.
The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in Toast’s filings with the Securities and Exchange Commission (“SEC”), including in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations’’ in Toast’s Annual Report on Form 10-K for the year ended December 31, 2024, Toast’s Annual Report on Form 10-K for the year ended December 31, 2025 that will be filed following this earnings release, and Toast’s subsequent SEC filings. Toast can give no assurance that the plans, intentions, expectations or strategies as reflected in or suggested by those forward-looking statements will be attained or achieved. The forward-looking statements in this release are based on information available to Toast as of the date hereof, and Toast disclaims any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing Toast’s views as of any date subsequent to the date of this press release.
TOAST, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in millions, except per share amounts)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Revenue:
Subscription services
$
256
$
200
$
936
$
706
Financial technology solutions
1,334
1,090
5,037
4,053
Hardware and professional services
43
48
180
201
Total revenue
1,633
1,338
6,153
4,960
Costs of revenue:
Subscription services
67
60
264
219
Financial technology solutions
1,036
852
3,891
3,175
Hardware and professional services
105
92
400
371
Amortization of acquired intangible assets
2
1
5
5
Total costs of revenue
1,210
1,005
4,560
3,770
Gross profit
423
333
1,593
1,190
Operating expenses:
Sales and marketing
153
130
571
470
Research and development
97
93
374
351
General and administrative
84
78
344
307
Restructuring expenses
4
—
12
46
Total operating expenses
338
301
1,301
1,174
Income from operations
85
32
292
16
Other income (expenses):
Interest income, net
15
13
51
42
Change in fair value of warrant liability
1
(11
)
3
(49
)
Other (expense) income, net
—
(1
)
—
13
Income before income taxes
101
33
346
22
Income tax expense
—
—
(4
)
(3
)
Net income
$
101
$
33
$
342
$
19
Net income per share attributable to common stockholders:
Basic
$
0.17
$
0.06
$
0.59
$
0.03
Diluted
$
0.16
$
0.05
$
0.56
$
0.03
Weighted-average shares used in computing net income per share:
Basic
588
569
582
559
Diluted
607
600
607
591
TOAST, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in millions, except for number of shares and par value)
December 31,
2025
2024
Assets:
Current Assets:
Cash and cash equivalents
$
1,353
$
903
Marketable securities
638
514
Accounts receivable, net
127
115
Inventories, net
114
118
Other current assets
437
325
Total current assets
2,669
1,975
Property and equipment, net
105
98
Operating lease right-of-use assets
27
25
Intangible assets, net
14
20
Goodwill
113
113
Restricted cash
71
59
Other non-current assets
146
118
Total non-current assets
476
433
Total assets
$
3,145
$
2,408
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
47
$
37
Deferred revenue
68
59
Accrued expenses and other current liabilities
854
715
Total current liabilities
969
811
Warrants to purchase common stock
19
22
Operating lease liabilities, non-current
20
24
Other long-term liabilities
13
6
Total liabilities
1,021
863
Stockholders’ Equity:
Preferred Stock - par value $0.000001; 100 million shares authorized, no shares issued or outstanding
—
—
Common stock, $0.000001 par value:
Class A - 7,000 million shares authorized; 523 million and 491 million issued and outstanding as of December 31, 2025 and 2024, respectively;
Class B - 700 million shares authorized; 66 million and 81 million issued and outstanding as of December 31, 2025 and 2024, respectively
—
—
Accumulated other comprehensive income (loss)
2
(1
)
Additional paid-in capital
3,384
3,150
Accumulated deficit
(1,262
)
(1,604
)
Total stockholders’ equity
2,124
1,545
Total liabilities and stockholders’ equity
$
3,145
$
2,408
TOAST, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in millions)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Cash flows from operating activities:
Net income
$
101
$
33
$
342
$
19
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
16
11
64
46
Stock-based compensation expense
56
60
242
253
Amortization of deferred contract acquisition costs
26
23
99
82
Change in fair value of warrant liability
(1
)
11
(3
)
49
Credit loss expense
25
20
91
70
Stock-based charitable contribution expense
—
—
6
5
Gain on warrant extinguishment
—
—
—
(14
)
Other non-cash items
4
1
11
(2
)
Changes in operating assets and liabilities:
Accounts receivable, net
(13
)
(18
)
(33
)
(72
)
Other current assets
(30
)
(4
)
(52
)
(15
)
Deferred contract acquisition costs
(38
)
(35
)
(147
)
(130
)
Inventories, net
(10
)
(12
)
4
—
Accounts payable
—
6
11
5
Accrued expenses and other current liabilities
44
55
21
48
Deferred revenue
—
—
6
23
Operating lease right-of-use assets and operating lease liabilities, net
—
(3
)
(6
)
(4
)
Other assets and liabilities
14
(1
)
5
(3
)
Net cash provided by operating activities
194
147
661
360
Cash flows from investing activities:
Capital expenditures
(16
)
(13
)
(53
)
(54
)
Purchases of marketable securities
(262
)
(120
)
(633
)
(473
)
Proceeds from the sale of marketable securities
43
46
178
126
Maturities of marketable securities
83
72
336
362
Net cash (used in) investing activities
(152
)
(15
)
(172
)
(39
)
Cash flows from financing activities:
Payments of issuance costs of the revolving credit facility
—
—
(3
)
—
Proceeds from issuance of common stock
3
15
81
99
Change in customer funds obligations, net
(13
)
(4
)
36
36
Warrant repurchase
—
—
—
(61
)
Repurchases of Class A common stock
(53
)
—
(107
)
(56
)
Net cash provided by (used in) financing activities
(63
)
11
7
18
Effect of exchange rate changes on cash and cash equivalents and restricted cash
(1
)
(2
)
2
(1
)
Net increase (decrease) in cash, cash equivalents, cash held on behalf of customers and restricted cash
(22
)
141
498
338
Cash, cash equivalents, cash held on behalf of customers and restricted cash at beginning of period
1,605
944
1,085
747
Cash, cash equivalents, cash held on behalf of customers and restricted cash at end of period
$
1,583
$
1,085
$
1,583
$
1,085
Reconciliation of cash, cash equivalents, cash held on behalf of customers and restricted cash
Cash and cash equivalents
$
1,353
$
903
$
1,353
$
903
Cash held on behalf of customers
159
123
159
123
Restricted cash
71
59
71
59
Total cash, cash equivalents, cash held on behalf of customers and restricted cash
$
1,583
$
1,085
$
1,583
$
1,085
Non-GAAP Financial Measures
In this press release, Toast refers to non-GAAP financial measures that are derived on the basis of methodologies other than in accordance with United States generally accepted accounting principles (“GAAP”). Toast uses certain non-GAAP financial measures, as described below, to understand and evaluate its core operating performance. These non-GAAP financial measures, which may be different than similarly-titled measures used by other companies, are presented to enhance investors’ overall understanding of Toast’s financial performance and should not be considered substitutes for, or superior to, the financial information prepared and presented in accordance with GAAP. Toast believes that these non-GAAP financial measures provide useful information about its financial performance, enhance the overall understanding of its past performance and future prospects, and allow for greater transparency with respect to important metrics used by Toast’s management for financial and operational decision-making.
In the tables below, Toast has provided reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP. These non-GAAP financial measures should not be considered substitutes for financial measures calculated in accordance with GAAP, and the financial results that Toast calculates and presents in the table in accordance with GAAP, as well as the corresponding reconciliations from those results, should be carefully evaluated.
The following are the non-GAAP financial measures referenced in this press release and presented in the tables below:
Adjusted EBITDA, Non-GAAP Subscription Services and Financial Technology Solutions Gross Profit, Non-GAAP Costs of Revenue, Non-GAAP Gross Profit, Non-GAAP Subscription Services Gross Profit, Non-GAAP Financial Technology Gross Profit, Non-GAAP Hardware and Professional Services Gross Profit, Non-GAAP Non-Payments Financial Technology Solutions Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses, and Free Cash Flow do not purport to represent profitability and liquidity measures as defined in accordance with GAAP. These measures are provided to investors and others to improve the quarter-to-quarter and year-to-year comparability of Toast’s financial results and to ensure that investors understand the information Toast uses to evaluate the performance of its businesses.
Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations since they do not include the impact of certain expenses and cash flows that are reflected in our Consolidated Statements of Operations and Consolidated Statements of Cash Flows. Thus, our Adjusted EBITDA, Non-GAAP Subscription Services and Financial Technology Solutions Gross Profit, Non-GAAP Costs of Revenue, Non-GAAP Gross Profit, Non-GAAP Subscription Services Gross Profit, Non-GAAP Financial Technology Gross Profit, Non-GAAP Hardware and Professional Services Gross Profit, Non-GAAP Non-Payments Financial Technology Solutions Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses, and Free Cash Flow should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.
Key Business Metrics
In addition, Toast also uses the following key business metrics to help it evaluate its business, identify trends affecting its business, formulate business plans, and make strategic decisions:
Locations
We define a live location, or Location, as a unique location that has used Toast Point of Sale to record transaction volumes above a minimum threshold, and has not been marked as a churned location as of the date of determination. A Location can use Toast payment services, which we refer to as a Toast Processing Location, or for select enterprise customers, not use Toast’s payment services, which we refer to as a Non-Toast Processing Location. Customers of legacy solutions provided by companies that we have acquired, that do not use Toast Point of Sale, are not included in our Location count.
Summary of Key Business Metrics and Non-GAAP Results
(unaudited)
Three Months Ended
December 31,
Year Ended December 31,
(dollars in billions)
2025
2024
% Growth
2025
2024
% Growth
Gross Payment Volume (GPV)
$
51.4
$
42.2
22
%
$
195.1
$
159.1
23
%
As of December 31,
(dollars in millions)
2025
2024
% Growth
Payments Annualized Recurring Run-Rate
$
986
$
794
24
%
Subscription Annualized Recurring Run-Rate
1,061
832
28
%
Total Annualized Recurring Run-Rate (ARR)
$
2,047
$
1,626
26
%
Adjusted EBITDA
Three Months Ended December 31,
Year Ended December 31,
(dollars in millions)
2025
2024
2025
2024
Net income
$
101
$
33
$
342
$
19
Stock-based compensation expense and related payroll tax
57
64
255
256
Depreciation and amortization
17
13
67
46
Interest income, net
(15
)
(13
)
(51
)
(42
)
Gain on warrant extinguishment
—
—
—
(14
)
Change in fair value of warrant liability
(1
)
11
(3
)
49
Termination of leases
—
3
1
5
Stock-based charitable contribution expense
—
—
6
5
Restructuring and restructuring-related expenses (1)
4
—
12
46
Income tax expense
—
—
4
3
Adjusted EBITDA
$
163
$
111
$
633
$
373
(1) Restructuring and restructuring-related expenses for the fiscal year ended December 31, 2025 and 2024 include $9 million and $32 million of severance benefits, $3 million and $12 million of stock-based compensation expense, and $— million and $2 million of accelerated amortization related to facilities.
Non-GAAP Subscription Services and Non-GAAP Financial Technology Solutions Gross Profit
Three Months Ended December 31,
Year Ended December 31,
(dollars in millions)
2025
2024
2025
2024
Gross profit (GAAP):
Subscription services
$
189
$
140
$
672
$
487
Financial technology solutions
298
238
1,146
878
Adjustments:
Stock-based compensation expense and related payroll tax
3
5
16
20
Depreciation and amortization
12
9
53
32
Non-GAAP subscription services and Non-GAAP financial technology solutions gross profit
$
502
$
392
$
1,887
$
1,417
Non-GAAP Costs of Revenue
Three Months Ended December 31,
Year Ended December 31,
(dollars in millions)
2025
2024
2025
2024
Costs of revenue
$
1,210
$
1,005
$
4,560
$
3,770
Stock-based compensation expense and related payroll tax
(8
)
(11
)
(38
)
(44
)
Depreciation and amortization
(14
)
(10
)
(59
)
(37
)
Non-GAAP costs of revenue
$
1,188
$
984
$
4,463
$
3,689
Non-GAAP Gross Profit
Three Months Ended December 31,
Year Ended December 31,
(dollars in millions)
2025
2024
2025
2024
Gross profit
$
423
$
333
$
1,593
$
1,190
Stock-based compensation expense and related payroll tax
8
11
38
44
Depreciation and amortization
14
10
59
37
Non-GAAP gross profit
$
445
$
354
$
1,690
$
1,271
Non-GAAP Subscription Services Gross Profit
Three Months Ended December 31,
Year Ended December 31,
(dollars in millions)
2025
2024
2025
2024
Subscription services gross profit
$
189
$
140
$
672
$
487
Stock-based compensation expense and related payroll tax
3
5
16
20
Depreciation and amortization
13
9
53
32
Non-GAAP subscription services gross profit
$
205
$
154
$
741
$
539
Non-GAAP Financial Technology Solutions Gross Profit
Three Months Ended December 31,
Year Ended December 31,
(dollars in millions)
2025
2024
2025
2024
Financial technology solutions gross profit
$
298
$
238
$
1,146
$
878
Stock-based compensation expense and related payroll tax
—
—
—
—
Depreciation and amortization
—
—
—
—
Non-GAAP financial technology solutions gross profit
$
298
$
238
$
1,146
$
878
Non-GAAP Hardware and Professional Services Gross Profit
Three Months Ended December 31,
Year Ended December 31,
(dollars in millions)
2025
2024
2025
2024
Hardware and professional services gross profit
$
(62
)
$
(44
)
$
(220
)
$
(170
)
Stock-based compensation expense and related payroll tax
5
6
22
23
Depreciation and amortization
—
—
1
2
Non-GAAP hardware and professional services gross profit
$
(57
)
$
(38
)
$
(197
)
$
(145
)
Non-GAAP Non-Payments Financial Technology Solutions Gross Profit
Three Months Ended December 31,
Year Ended December 31,
(dollars in millions)
2025
2024
2025
2024
Financial technology solutions gross profit
$
298
$
238
$
1,146
$
878
Payments financial technology solutions gross profit
(247
)
(195
)
(950
)
(726
)
Non-GAAP non-payments financial technology solutions gross profit
$
51
$
43
$
196
$
152
Non-GAAP Sales and Marketing Expenses
Three Months Ended December 31,
Year Ended December 31,
(dollars in millions)
2025
2024
2025
2024
Sales and marketing expenses
$
153
$
130
$
571
$
470
Stock-based compensation expense and related payroll tax
(14
)
(15
)
(60
)
(58
)
Depreciation and amortization
—
(1
)
(3
)
(3
)
Non-GAAP sales and marketing expenses
$
139
$
114
$
508
$
409
Non-GAAP Research and Development Expenses
Three Months Ended December 31,
Year Ended December 31,
(dollars in millions)
2025
2024
2025
2024
Research and development expenses
$
97
$
93
$
374
$
351
Stock-based compensation expense and related payroll tax
(21
)
(23
)
(94
)
(88
)
Depreciation and amortization
(2
)
(1
)
(3
)
(4
)
Non-GAAP research and development expenses
$
74
$
69
$
277
$
259
Non-GAAP General and Administrative Expenses
Three Months Ended December 31,
Year Ended December 31,
(dollars in millions)
2025
2024
2025
2024
General and administrative expenses
$
84
$
78
$
344
$
307
Stock-based compensation expense and related payroll tax
(14
)
(15
)
(63
)
(66
)
Depreciation and amortization
(1
)
(1
)
(2
)
(2
)
Termination of leases
—
(3
)
(1
)
(5
)
Stock-based charitable contribution expense
—
—
(6
)
(5
)
Non-GAAP general and administrative expenses
$
69
$
59
$
272
$
229
Free Cash Flow
Three Months Ended December 31,
Year Ended December 31,
(dollars in millions)
2025
2024
2025
2024
Net cash provided by operating activities
$
194
$
147
$
661
$
360
Capital expenditures
(16
)
(13
)
(53
)
(54
)
Free cash flow
$
178
$
134
$
608
$
306
Sums may not equal totals due to rounding.
TOST-FIN