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TOST Gears Up to Report Q3 Earnings: What's in the Offing?
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Key Takeaways
Toast will report third-quarter 2025 earnings on Nov. 4 after the closing bell.
Q3 profit from subscription and fintech units is expected to grow 23-26% year over year.
New markets, AI innovations and an American Express alliance are boosting Toast's expansion.
Toast Inc. ((TOST - Free Report) ) is slated to report third-quarter 2025 earnings on Nov. 4, after the closing bell.
The Zacks Consensus Estimate for revenues is pegged at $1.59 billion, indicating an increase of 22% from a year ago.
The Zacks Consensus Estimate for non-GAAP earnings per share is pegged at 24 cents. The company reported earnings of 7 cents per share in the year-ago quarter.
TOST’s earnings beat the Zacks Consensus Estimate in three of the last trailing four quarters, while lagging once, with the average surprise being 150.7%. The stock has gained 19.2% in the past year compared with the Zacks Internet-Software industry’s growth of 25.3%.
Image Source: Zacks Investment Research
Key Strategic Levers
Steady customer traction across Subscription services and Financial Technology solutions segments, driven by record additions of new locations, strong double-digit gains in recurring gross profit and continued margin improvement, is likely to have aided TOST’s third-quarter performance. It expects third-quarter non-GAAP gross profit from subscription services and financial technology solutions to range from $465 million to $475 million, implying 23–26% year-over-year growth.
Adjusted EBITDA is projected to be between $140 million and $150 million. Building on its robust strategies for 2025, the company prioritizes expanding market share in the U.S. restaurant industry, demonstrating growth in new regions, increasing platform usage with data and AI, and maintaining disciplined investments while enhancing profit margins. TOST reported 8,500 net locations in the second quarter of 2025. It ended the quarter with approximately 148,000 total customer locations worldwide, representing 24% year-over-year growth.
Management expects to achieve record net additions in the third quarter, and 2025 is now anticipated to surpass 2024’s full-year net increase. Toast aims to strengthen its global presence in restaurant technology and financial services by expanding within U.S. SMB restaurants and entering new international markets, supported by its launch in Australia and a new partnership with American Express ((AXP - Free Report) ) during the quarter. The Australia launch marks its fourth international market, entering new customer segments across enterprise, global and food and beverage retail.
The alliance with AXP aims to enhance the dining experience for restaurants and diners across Resy, Tock and Toast locations in the United States, while creating new revenue streams for the company. It will also explore additional benefits for guests and American Express Card Members, increasing visibility for restaurants, wineries, cafes and bars through the Local by Toast app. Furthermore, Toast is expanding its platform with new products such as Toast Go 3 and its AI engine, ToastIQ, emphasizing its continued focus on innovation. Recently, it announced a significant upgrade to its ToastIQ intelligence ecosystem, introducing a conversational AI assistant designed for restaurants and food and beverage businesses.
However, management anticipates higher tariff costs in the second half of 2025. Increased spending across core and new segments may have pressured margins despite efforts to promote long-term growth. A decline in Gross Payment Volume (GPV) per location is also a concern, as it indicates lower average transaction volumes. TOST’s overall GPV increased 23% year over year to $42 billion in the second quarter, but GPV per location fell 1%. Growing competition internationally and risks associated with enterprise rollouts pose headwinds.
Earnings Whispers for TOST
Our proven model does not predict an earnings beat for TOST this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
TOST has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three stocks you may want to consider, as our model shows that these have the right elements to post an earnings beat in this reporting cycle.
AMD is set to report third-quarter 2025 results on Nov. 4. The Zacks Consensus Estimate for AMD’s quarterly revenues and earnings is pegged at $8.72 billion and $1.17 per share, respectively.
Allient ((ALNT - Free Report) ) presently has an Earnings ESP of +8.00% and a Zacks Rank #3. ALNT is scheduled to report third-quarter 2025 results on Nov. 5. The Zacks Consensus Estimate for ALNT’s quarterly revenues and earnings is pegged at $134.7 million and 50 cents per share, respectively.
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TOST Gears Up to Report Q3 Earnings: What's in the Offing?
Key Takeaways
Toast Inc. ((TOST - Free Report) ) is slated to report third-quarter 2025 earnings on Nov. 4, after the closing bell.
The Zacks Consensus Estimate for revenues is pegged at $1.59 billion, indicating an increase of 22% from a year ago.
The Zacks Consensus Estimate for non-GAAP earnings per share is pegged at 24 cents. The company reported earnings of 7 cents per share in the year-ago quarter.
TOST’s earnings beat the Zacks Consensus Estimate in three of the last trailing four quarters, while lagging once, with the average surprise being 150.7%. The stock has gained 19.2% in the past year compared with the Zacks Internet-Software industry’s growth of 25.3%.
Image Source: Zacks Investment Research
Key Strategic Levers
Steady customer traction across Subscription services and Financial Technology solutions segments, driven by record additions of new locations, strong double-digit gains in recurring gross profit and continued margin improvement, is likely to have aided TOST’s third-quarter performance. It expects third-quarter non-GAAP gross profit from subscription services and financial technology solutions to range from $465 million to $475 million, implying 23–26% year-over-year growth.
Adjusted EBITDA is projected to be between $140 million and $150 million. Building on its robust strategies for 2025, the company prioritizes expanding market share in the U.S. restaurant industry, demonstrating growth in new regions, increasing platform usage with data and AI, and maintaining disciplined investments while enhancing profit margins. TOST reported 8,500 net locations in the second quarter of 2025. It ended the quarter with approximately 148,000 total customer locations worldwide, representing 24% year-over-year growth.
Management expects to achieve record net additions in the third quarter, and 2025 is now anticipated to surpass 2024’s full-year net increase. Toast aims to strengthen its global presence in restaurant technology and financial services by expanding within U.S. SMB restaurants and entering new international markets, supported by its launch in Australia and a new partnership with American Express ((AXP - Free Report) ) during the quarter. The Australia launch marks its fourth international market, entering new customer segments across enterprise, global and food and beverage retail.
Toast, Inc. Price and EPS Surprise
Toast, Inc. price-eps-surprise | Toast, Inc. Quote
The alliance with AXP aims to enhance the dining experience for restaurants and diners across Resy, Tock and Toast locations in the United States, while creating new revenue streams for the company. It will also explore additional benefits for guests and American Express Card Members, increasing visibility for restaurants, wineries, cafes and bars through the Local by Toast app. Furthermore, Toast is expanding its platform with new products such as Toast Go 3 and its AI engine, ToastIQ, emphasizing its continued focus on innovation. Recently, it announced a significant upgrade to its ToastIQ intelligence ecosystem, introducing a conversational AI assistant designed for restaurants and food and beverage businesses.
However, management anticipates higher tariff costs in the second half of 2025. Increased spending across core and new segments may have pressured margins despite efforts to promote long-term growth. A decline in Gross Payment Volume (GPV) per location is also a concern, as it indicates lower average transaction volumes. TOST’s overall GPV increased 23% year over year to $42 billion in the second quarter, but GPV per location fell 1%. Growing competition internationally and risks associated with enterprise rollouts pose headwinds.
Earnings Whispers for TOST
Our proven model does not predict an earnings beat for TOST this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
TOST has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three stocks you may want to consider, as our model shows that these have the right elements to post an earnings beat in this reporting cycle.
Advanced Micro Devices ((AMD - Free Report) ) currently has an Earnings ESP of +0.18% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
AMD is set to report third-quarter 2025 results on Nov. 4. The Zacks Consensus Estimate for AMD’s quarterly revenues and earnings is pegged at $8.72 billion and $1.17 per share, respectively.
Allient ((ALNT - Free Report) ) presently has an Earnings ESP of +8.00% and a Zacks Rank #3. ALNT is scheduled to report third-quarter 2025 results on Nov. 5. The Zacks Consensus Estimate for ALNT’s quarterly revenues and earnings is pegged at $134.7 million and 50 cents per share, respectively.