Toast Q4 Revenue Up 22% to $1.6B; ARR Surpasses $2B
Toast reported Q4 2025 revenue of $1.6 billion, up 22% year-over-year, and exceeded $2 billion in annual recurring revenue by adding over 30,000 net locations to reach 164,000. Recurring gross profit rose 33% while adjusted EBITDA margin expanded to 34%, and management guided 2026 EBITDA of $775–$795 million.
1. Q4 Financial Performance
In Q4 2025, Toast delivered $1.6 billion in revenue, representing a 22% year-over-year increase, and reached over $2 billion in annual recurring revenue. The company boosted recurring gross profit by 33% and expanded its adjusted EBITDA margin to 34%.
2. Platform Expansion
Toast added more than 30,000 net locations during 2025, bringing its total to 164,000 restaurants and foodservice venues. The platform secured enterprise contracts with Applebee’s and Firehouse Subs, and launched its services in the Australian market.
3. Product Developments and Innovations
The company rolled out over 500 new platform features, including the Toast IQ conversational AI assistant designed to streamline operations and customer engagement. Investments in AI and machine learning continued to enhance analytics, order processing, and menu management tools.
4. Outlook and Guidance
For 2026, Toast expects recurring gross profit growth between 20% and 22% and projects adjusted EBITDA of $775 million to $795 million. Management highlighted ongoing R&D investments in AI-driven offerings and a dedicated drive-thru solution to support future expansion.