Description

Toast, Inc.: The Journey From Restaurant OS to Multi-Vertical Platform—What Comes Next!

Toast, Inc. delivered a strong operational performance in the fourth quarter and full year of 2025, marked by continued location growth, expanding recurring revenue streams, and material margin improvement. The company added a record number of net locations during the year, ending with approximately 164,000 locations on its platform, while recurring gross profit grew at a pace well above overall revenue growth. Annual recurring revenue exceeded $2 billion, supported by consistent mid-single-digit SaaS ARPU expansion and solid net retention. These results indicate sustained demand within its core U.S. small and mid-market restaurant base alongside increasing contributions from newer verticals. Profitability trends were a notable positive. Adjusted EBITDA expanded significantly year over year, and GAAP operating income increased sharply, reflecting scale benefits, disciplined operating expense growth, and improved efficiency in customer support and go-to-market execution.