Toast, Inc. (NYSE: TOST) reported fourth‑quarter and full‑year 2025 results on February 12, 2026. Revenue reached $1.63 billion, a 22% year‑over‑year increase, while earnings per share were $0.16, falling short of the consensus estimate of $0.24.
Adjusted EBITDA for the quarter was $163 million, giving a margin of 34% that matches the full‑year 2025 margin. The margin expansion reflects a higher mix of high‑margin subscription services and the continued scaling of the company’s AI‑driven platform.
For the first quarter of fiscal 2026, Toast guided to revenue of $1.63 billion and adjusted EBITDA of $160–$170 million. Full‑year 2026 guidance projects subscription services and financial technology gross profit of $2.27–$2.30 billion and adjusted EBITDA of $775–$795 million, indicating confidence in sustained growth despite higher hardware costs.
CEO Aman Narang said, '2025 was a strong year for Toast, adding a record 30,000 net locations, growing recurring gross profit 33%, and delivering Adjusted EBITDA margins of 34%.' He added, 'Our results demonstrate the power of our focused strategy and consistent execution.' Narang also noted, 'Our results showcase the strength of our business model in what was another outstanding year for Toast. Net adds increased every quarter versus a year ago, and we added a record 30,000 net locations in 2025, ending the year with 164,000 locations. ARR grew 26%, and our recurring gross profit streams increased 33% for the year, an incredible accomplishment at our scale with over $2 billion in ARR and $195 billion in payment volume in 2025. On top of strong top‑line momentum, we are efficiently scaling the business through disciplined capital allocation and ongoing cost management.'
The revenue growth was driven by continued expansion of the company’s restaurant‑technology platform, while the EPS miss was largely attributable to higher hardware costs and the impact of memory‑chip price increases, which the company expects to offset in the next quarter. Toast’s board approved a $500 million increase to its share‑repurchase program, underscoring confidence in its cash‑generating ability and commitment to shareholder value.
Toast’s guidance signals that management expects the momentum in subscription services and fintech to continue, but it also acknowledges the cost pressures that could temper profitability in the near term.
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