Toast IncTOST
▲ PositiveCapitalrelevance
Beat earnings estimates and raised outlook, with strong revenue growth and record location additions.
Impact on stocks 1
Cloud & Digital Infrastructure
Toast IncToast's stock has fallen 2.2% since its second-quarter earnings report, underperforming the S&P 500, but the company posted strong results and raised its outlook. The restaurant software firm earned 34 cents per share, beating the Zacks Consensus Estimate of 32 cents, while revenue rose 23.1% year over year to $1.91 billion, also surpassing expectations. Growth was driven by subscription and financial technology solutions, with annualized recurring run-rate up 25% to $2.41 billion and a record 9,500 net locations added. Total locations increased 22% to approximately 180,000, and Gross Payment Volume rose 22% to $60.7 billion. Management highlighted strong adoption of its AI product Toast IQ Grow, which is on track to become its fastest-growing product to $10 million in ARR, and expects ARR from new markets to nearly double to $200 million in 2026.
Toast IncBeat earnings estimates and raised outlook, with strong revenue growth and record location additions.