Olo Inc. Reports 21.6% Revenue Growth in Q2 2025, Announces $2 Billion Merger with Thoma Bravo

Olo Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $85.7 million, a 21.6% increase from $70.5 million in the same period last year. The platform revenue, which constitutes the majority of the company's income, rose by 20.9% to $84.1 million, driven by increased transaction volumes through its Olo Pay solution and higher order revenue. However, the company recorded a net income of $1.6 million, down from $5.7 million in the prior year, reflecting a loss from operations of $2.7 million compared to an income of $1.0 million in Q2 2024.

In the first half of 2025, Olo's total revenue reached $166.4 million, up 21.4% from $137.0 million in the first half of 2024. The increase was attributed to a 20.7% rise in platform revenue, which amounted to $163.4 million, alongside an 83.5% increase in professional services revenue. Despite the revenue growth, the company's gross profit margin decreased to 53.0% from 56.3% year-over-year, primarily due to higher transaction processing costs associated with Olo Pay and increased amortization of capitalized software.

Olo's operational metrics showed positive trends, with the number of active locations increasing to approximately 89,000 as of June 30, 2025, up from 82,000 a year earlier. The average revenue per unit also improved to approximately $955, compared to $852 in the previous year. The company reported a dollar-based net revenue retention rate of 114%, indicating strong customer loyalty and expansion within its existing customer base.

Strategically, Olo announced a significant merger agreement with Thoma Bravo, a private equity firm, valued at approximately $2 billion. Under the terms of the agreement, Olo shareholders will receive $10.25 per share in cash. The merger is expected to close by the end of 2025, pending regulatory approvals and stockholder consent. This acquisition is anticipated to enhance Olo's operational capabilities and market position in the restaurant technology sector.

Looking ahead, Olo's management expressed optimism about future growth, emphasizing plans to expand its product offerings and customer base. The company aims to leverage its existing relationships with restaurant brands to drive further adoption of its modules and enhance its digital commerce solutions. However, management also acknowledged potential risks, including market competition and economic conditions that could impact customer spending and operational costs.