Toast, Inc. Reports 24% Revenue Growth and Net Income Turnaround in Q1 2025

Toast, Inc. reported a significant increase in financial performance for the first quarter of 2025, with total revenue reaching $1.337 billion, a 24% increase from $1.075 billion in the same period last year. The growth was primarily driven by a 38% rise in subscription services revenue, which totaled $209 million, and a 24% increase in financial technology solutions revenue, amounting to $1.082 billion. The company also achieved a net income of $56 million, compared to a net loss of $83 million in the first quarter of 2024, marking a substantial turnaround in profitability.

The company's balance sheet showed total assets of $2.564 billion as of March 31, 2025, up from $2.408 billion at the end of 2024. Current assets increased to $2.122 billion, driven by higher cash and cash equivalents, which rose to $1.005 billion from $903 million. Total stockholders' equity also improved, reaching $1.673 billion, compared to $1.545 billion at the end of the previous fiscal year. This positive shift in financial metrics reflects Toast's strategic focus on expanding its customer base and enhancing product adoption.

Operationally, Toast reported approximately 140,000 active locations on its platform, a 25% increase year-over-year, processing around $167 billion in gross payment volume over the trailing twelve months. The company noted that its financial technology solutions revenue is expected to continue growing, supported by the increasing number of locations utilizing its services. Additionally, Toast's employee headcount remained stable, with no significant changes reported during the quarter.

In terms of strategic developments, Toast continued to implement its restructuring plan initiated in February 2024, which aimed to enhance operational efficiency. The company incurred $7 million in restructuring expenses during the first quarter of 2025, significantly lower than the $41 million recorded in the same period last year. This restructuring effort is expected to yield long-term benefits as the company streamlines its operations. Furthermore, Toast's share repurchase program, authorized for up to $250 million, saw the company repurchase $17 million in Class A common stock during the quarter.

Looking ahead, Toast remains optimistic about its growth trajectory, with expectations of continued revenue increases driven by its expanding customer base and product offerings. The company anticipates that its financial technology solutions will represent a significant portion of its overall revenue mix, despite potential seasonal fluctuations in performance. Toast's management expressed confidence in maintaining strong liquidity, supported by cash reserves and available credit facilities, to meet its operational and strategic needs in the coming months.