TOST Q4 2025 Earnings

Call Details

• Call Title: Toast Q4 2025 Earnings Call
• Date: February 12, 2026 at 10:00 PM UTC
• Management Team:
  • Michael Senno (Senior Vice President of Finance)
  • Aman Narang (CEO and Co-founder)
  • Elena Gomez (Chief Financial Officer)

Call Summary

Financial Performance

• Recurring gross profit streams increased 33% for the full year 2025 on a reported basis.
• ARR was reported at over $2B and grew 26% year over year for 2025.
• Toast added over 30,000 net locations in 2025, ending the year with 164,000 locations.
• Full-year adjusted EBITDA was $633M and free cash flow was $608M for 2025.
• GAAP operating income was $292M for 2025 compared to $16M the prior year.
• Q4 recurring gross profit streams increased 28% year over year and added approximately 8,000 net locations in the quarter.
• Q4 SaaS gross margin expanded 300 basis points year over year to 80% and SaaS ARR grew 28% year over year.

Guidance

• Full-year 2026 recurring gross profit streams growth is guided to 20% to 22% year over year.
• Full-year 2026 adjusted EBITDA is guided to $775M to $795M, implying margins are slightly up year over year versus 2025.
• Q1 2026 guidance expects total FinTech and subscription gross profit growth of 22% to 24% year over year.
• Q1 2026 adjusted EBITDA is guided to $160M to $170M reflecting seasonal patterns.
• Guidance for 2026 incorporates approximately 150 basis points of negative impact from higher memory chip costs for hardware.
• The company reiterated a bias toward reinvesting potential upside into new TAMs, product and AI initiatives, and future growth bets.