Toast Earnings Call Transcripts
Fiscal Year 2026
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Revised summary: In five years, the business rapidly expanded beyond the U.S. SMB restaurant market into international, enterprise, and retail sectors, maintaining strong profitability and higher ARPU. AI products like Toast IQ Grow drive growth, with new verticals expected to double ARR. Margin gains and disciplined investments support a long-term 40%+ margin outlook.
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Q2 2026 saw robust growth with recurring gross profit up 28%, record net location adds, and strong expansion in new markets. AI-driven products like Toast IQ Grow are scaling rapidly, and full-year guidance was raised for both profit and EBITDA.
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The meeting was held virtually, with a new board member introduced and three proposals presented: director elections, auditor ratification, and executive compensation approval. All proposals passed, and final results will be filed with the SEC.
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AI is central to future growth, driving both product innovation and internal efficiency, with Toast IQ Grow showing early success. Despite near-term hardware cost pressures, margin expansion and disciplined capital allocation remain priorities. New markets and consumer engagement are accelerating, supported by stable restaurant spending.
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Recurring gross profit streams grew 27% year-over-year, with strong SaaS and Fintech performance, expanding margins, and robust location growth. AI-driven products and international expansion are fueling momentum, and full-year guidance was raised on continued execution.
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Achieved significant market share and recurring profit growth, driven by expansion into enterprise, international, and retail markets. AI innovation is central to product differentiation and operational efficiency, while disciplined investments and margin focus support long-term profitability.
Fiscal Year 2025
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Recurring gross profit grew 33% and ARR reached $2B in 2025, with strong margin expansion and record net new locations. 2026 guidance calls for 20%-22% recurring gross profit growth and higher adjusted EBITDA, despite hardware cost headwinds.
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Strong 2025 results included surpassing $2 billion in recurring gross profit and expanding into new markets. Continued investment in innovation, sales capacity, and partnerships is expected to drive at least 20% recurring gross profit growth in 2026, with stable margins and a focus on long-term growth.
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Q3 2025 saw 34% top-line growth, 35% margins, and ARR surpassing $2 billion, with strong gains in both core and new markets. AI-driven products and international expansion fueled growth, while disciplined capital allocation supported margin expansion and robust cash flow.
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Strong Q2 performance included 31% gross profit growth and record net adds, with continued expansion in core, international, and new verticals. Product innovation, especially in AI, and disciplined investment support long-term growth, while market trends remain stable.
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Q2 2025 delivered record growth, with recurring gross profit up 35% and adjusted EBITDA at $161M. Expansion into new segments and geographies, strong ARPU, and innovative partnerships drove momentum, while full-year guidance was raised on continued execution.
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The meeting was held virtually, with outgoing board members recognized and three proposals—director elections, auditor ratification, and executive compensation—approved by shareholders. No questions were raised, and final results will be filed with the SEC.
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Market share has grown to 15% with strong productivity in core and new segments, while enterprise and international expansion are underway. AI-driven innovation and disciplined capital allocation support long-term growth, with flexible payment models and a focus on customer outcomes.
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Q1 2025 saw strong growth in locations, ARR, and profitability, with major enterprise wins and robust performance across all segments. Full-year guidance was raised, reflecting confidence in continued momentum despite macro uncertainties.
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Record growth in locations, ARR, and margins marked 2024, with strong expansion in retail, enterprise, and international markets. Strategic investments in AI, product innovation, and platform extensibility support long-term growth, while disciplined financial management targets margin expansion in 2025.
Fiscal Year 2024
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Record 2024 results with 28,000 net location adds, 34% recurring gross profit growth, and first full year of GAAP profitability. 2025 guidance targets 23%-25% recurring gross profit growth and $510-$530 million Adjusted EBITDA, with continued investment in core, enterprise, international, and retail segments.
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2024 was a reset year with a new CEO, restructure, and strong financial growth. Expansion into international and retail markets is underway, with positive early results. Subscription and fintech metrics are stable, and product innovation is driven by customer needs and data assets.
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Q3 saw strong growth with 7,000 net new locations, recurring gross profit up 35% year over year, and Adjusted EBITDA of $113 million. Guidance for Q4 and full year 2024 remains robust, with continued investments in product innovation, new markets, and margin expansion.
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The discussion highlighted ongoing market share gains, margin expansion, and disciplined capital allocation, with strong growth in retail and international markets. Pricing and upsell strategies are driving ARPU, while profitability improvements support long-term investments and shareholder returns.
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Q2 saw record net location adds and 29% growth in recurring gross profit streams, with adjusted EBITDA of $92 million and GAAP profitability achieved ahead of plan. Full-year guidance was raised, reflecting strong execution and continued investment despite a dynamic macro environment.