Toast Inc. reported its second-quarter 2025 financial results with revenue reaching $1.55 billion, surpassing estimates of $1.52 billion and marking a 25% year-over-year increase. Net income and operating income both stood at $80 million, while gross profit rose 37% year-over-year to $392 million, representing a 25% gross margin. Adjusted EBITDA was $161 million, exceeding expectations. The company’s annual recurring revenue (ARR) increased 31% year-over-year to $1.9 billion. Gross Payment Volume (GPV) grew 23% year-over-year to $49.9 billion. Total locations served by Toast expanded 24% year-over-year to approximately 148,000, including over 10,000 live locations in enterprise, international, and food and beverage retail segments. Subscription revenues rose 36.7% year-over-year to $227 million, and financial technology solutions revenues increased 25% year-over-year to $1.276 billion. Free cash flow for the quarter was $208 million. For the third quarter, Toast provided guidance projecting adjusted subscription and fintech gross profit between $465 million and $475 million, up 23% to 26% year-over-year, and adjusted EBITDA between $140 million and $150 million. The company also announced a new partnership with American Express to integrate reservation listings from Resy, Tock, and Toast Tables into its Local by Toast mobile app. Toast expects 29% growth in fintech and subscription gross profit and anticipates adjusted EBITDA of $575 million for the full year 2025, representing a 32% margin, up 5 percentage points compared to 2024.