Filing Flows › Toast (TOST) › Q1 2025
Toast (TOST) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 9, 2025
Toast (TOST) reported revenue of $1.3B for the first quarter 2025 (Q1 2025), +24% from a year earlier and -0.1% from the quarter before. Operating margin was 3.2%, net earnings $56.0M (4.2% of revenue).
Toast, Q1 2025: revenue $1.3B (+24% year over year), operating margin 3.2%, net earnings $56.0M, operating cash flow $79.0M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.3B | -0.1% | +24% |
| Gross profit | $346M | +4% | +39% |
| Operating profit | $43.0M | +34% | — |
| Net earnings | $56.0M | +75% | — |
| Operating cash flow | $79.0M | -46% | — |
| Free cash flow | $69.0M | -49% | — |
What changed
Revenue was $1.3B in Q1 2025, up 24% year over year and roughly flat from the previous quarter. Financial technology solutions was the largest line at 81% of revenue. Financial technology solutions added $0.21B year over year (up 24%), 80% of the total change. Hardware and professional services declined 10%.
Gross margin was 25.9%, up 2.7 points from a year earlier. Operating profit was $0.04B, a 3.2% margin (up 8.4 points year over year). Operating expenses fell 1% while revenue rose 24%. The fastest-growing cost line was Sales & marketing (+24%). Net earnings were $0.06B. The effective tax rate was 3.4%. Non-operating items added $0.01B, 26% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $0.08B, 141% of net earnings. Non-cash charges added back $0.02B of depreciation and amortization and $0.06B of share-based compensation. Working capital and other items used $0.06B. Capital expenditures of $0.01B left free cash flow of $0.07B.
Questions
What was Toast's revenue in the first quarter 2025?
Toast (TOST) reported revenue of $1.3B for the first quarter 2025 (Q1 2025), +24% from a year earlier and -0.1% from the quarter before.
Was Toast profitable in the first quarter 2025?
Operating profit was $43.0M (3.2% of revenue) and net earnings $56.0M.
Source: Toast 10-Q on SEC EDGAR.