Filing Flows › Toast (TOST) › Q2 2025
Toast (TOST) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 6, 2025
Toast (TOST) reported revenue of $1.6B for the second quarter 2025 (Q2 2025), +25% from a year earlier and +16% from the quarter before. Operating margin was 5.2%, net earnings $80.0M (5.2% of revenue).
Toast, Q2 2025: revenue $1.6B (+25% year over year), operating margin 5.2%, net earnings $80.0M, operating cash flow $223M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.6B | +16% | +25% |
| Gross profit | $392M | +13% | +37% |
| Operating profit | $80.0M | +86% | 16× |
| Net earnings | $80.0M | +43% | +471% |
| Operating cash flow | $223M | +182% | +80% |
| Free cash flow | $208M | +201% | +93% |
What changed
Revenue was $1.6B in Q2 2025, up 25% year over year and up 16% from the previous quarter. Financial technology solutions was the largest line at 82% of revenue. Financial technology solutions added $0.25B year over year (up 25%), 82% of the total change. Hardware and professional services declined 11%.
Gross margin was 25.3%, up 2.3 points from a year earlier. Operating profit was $0.08B, a 5.2% margin (up 4.8 points year over year). Of the extra revenue versus a year earlier, 24% reached operating profit, above the 0% margin then. Operating expenses grew 11% against revenue growth of 25%. The fastest-growing cost line was Sales & marketing (+23%). Net earnings were $0.08B, up 471% year over year. The effective tax rate was 3.6%.
Operating cash flow was $0.22B (up 80% year over year), 279% 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 added $0.07B. Capital expenditures of $0.01B left free cash flow of $0.21B.
Questions
What was Toast's revenue in the second quarter 2025?
Toast (TOST) reported revenue of $1.6B for the second quarter 2025 (Q2 2025), +25% from a year earlier and +16% from the quarter before.
Was Toast profitable in the second quarter 2025?
Operating profit was $80.0M (5.2% of revenue) and net earnings $80.0M.
Source: Toast 10-Q on SEC EDGAR.