Toast Q3 Revenue Climbs 25% to $1.63B with 35% EBITDA Margin
Toast reported Q3 2025 revenue of $1.63 billion, up 25% year-on-year, while achieving 35% adjusted EBITDA margin and 79% SaaS gross margin. The company added 7,500 net locations, lifted ARR to $2.02 billion (+30% YoY) and delivered a 9.4% free cash flow margin.
1. Q3 2025 Revenue Growth
Toast generated $1.63 billion in revenue for Q3 2025, marking a 25% increase year-over-year and demonstrating robust demand for its restaurant POS solutions.
2. Profitability and Cash Generation
The company achieved a 35% adjusted EBITDA margin alongside a 9.4% free cash flow margin, reflecting scalable operations and strong cost efficiency.
3. Customer and ARR Expansion
With a 79% SaaS gross margin, Toast grew its ARR to $2.02 billion (up 30% YoY) and added 7,500 net new locations, reinforcing its recurring revenue base and long-term growth prospects.
4. Competitive Outlook
Toast’s superior unit economics and high margins position it ahead of competitors in the restaurant POS market, highlighting an execution advantage in profitability and customer expansion.