Toast (TOST) Q4 2024 earnings summary

Executive summary

• Achieved record 28,000 net location adds in 2024, reaching 134,000 total locations, and processed $160 billion in payment volume, with recurring gross profit streams and ARR up 34% year-over-year.

• Delivered first full year of GAAP profitability, with net income of $19 million and Adjusted EBITDA of $373 million for 2024, and a 20 percentage point margin expansion year-over-year.

• Fourth quarter net income was $33 million and Adjusted EBITDA was $111 million.

• Strategic priorities for 2025 include deepening U.S. restaurant market share, scaling new markets (enterprise, international, retail), increasing platform adoption, and expanding margins.

• Expanded partnerships and signed major enterprise agreements, including with Uber, Hilton Hotels, Ascent Hospitality, and continued expansion with Marriott and Choice Hotels.

Financial highlights

• Q4 2024 ARR reached $1.6 billion, up 34% year-over-year; total locations up 26% to 134,000.

• Q4 Gross Payment Volume (GPV) rose 25% year-over-year to $42.2 billion; full year GPV up 26% to $159.1 billion.

• Q4 GAAP subscription and financial tech gross profit up 40% to $378 million; non-GAAP up 39% to $392 million.

• Adjusted EBITDA was $111 million in Q4, with margins expanding 18 percentage points year-over-year to 28%.

• Free cash flow totaled $134 million in Q4 and $306 million for the full year.

Outlook and guidance

• 2025 guidance: 23%-25% growth in recurring gross profit streams, with higher growth in the first half of the year.

• Full-year Adjusted EBITDA guidance of $510-$530 million, reflecting a 30% margin at the midpoint.

• Q1 2025 expected subscription and Fintech gross profit growth of 27%-30%, and Adjusted EBITDA of $100-$110 million.

• Free cash flow in 2025 anticipated to broadly mirror Adjusted EBITDA, with typical seasonality.