Toast Inc. (NYSE: TOST), the leading all-in-one digital technology platform for the restaurant industry, has unveiled its financial results for the fourth quarter and the full year ended December 31, 2024. The company’s performance underscores a significant turnaround, highlighted by remarkable growth in various key metrics.

1. Strong Performance in Q4 2024

Toast experienced a robust end to 2024, with CEO and Co-Founder Aman Narang emphasizing the company’s transformative year during the press release. Key financial highlights for the fourth quarter are as follows:

Annual Recurring Revenue (ARR) reached $1.6 billion, marking a 34% increase year-over-year.

The total number of locations utilizing Toast’s services grew by 26% year-over-year, reaching approximately 134,000.

Gross Payment Volume (GPV) rose 25% year-over-year, totaling $42.2 billion.

GAAP gross profit from subscription services and financial technology solutions increased by 40% year-over-year to $378 million. Non-GAAP gross profit also showed strong growth, up 39% to $392 million.

The company reported a GAAP income from operations of $32 million, a significant recovery from a loss of $(56) million in the same quarter of 2023.

GAAP net income stood at $33 million, a turnaround from a net loss of $(36) million in Q4 2023.

Adjusted EBITDA surged to $111 million, compared to $29 million in the prior year’s fourth quarter.

Cash flow metrics improved significantly, with net cash provided by operating activities at $147 million and Free Cash Flow of $134 million, up from $92 million and $81 million, respectively, in Q4 2023.

2. Full Year 2024 Financial Highlights

For the entire year, Toast’s financial metrics reflect a strong upward trajectory, showcasing the company's effective strategies:

For the full year 2024, GPV increased 26% year-over-year, totaling $159.1 billion.

The GAAP gross profit from subscription services and financial technology solutions reached $1.4 billion, a 34% increase year-over-year. Non-GAAP gross profit also matched this growth rate.

The company achieved a GAAP income from operations of $16 million, a substantial improvement from a loss of $(287) million in 2023.

GAAP net income for the year was $19 million, a stark improvement from a net loss of $(246) million the previous year.

Adjusted EBITDA for the full year amounted to $373 million, sharply up from $61 million in 2023.

Overall, net cash provided by operating activities reached $360 million, with Free Cash Flow hitting $306 million, compared to $135 million and $93 million in 2023, respectively.

3. Strategic Outlook for 2025

Looking ahead, CEO Aman Narang expressed confidence in Toast’s trajectory, highlighting the addition of a record 28,000 net locations during the year. Narang noted that the company is witnessing positive momentum not just with its core customer base, but also among newer groups, including enterprise clients and international markets.

In 2025, Toast plans to accelerate its efforts in these new addressable markets while continuing to differentiate its platform. Narang mentioned an ambitious goal of serving many multiples of the 134,000 locations currently served, aiming to ensure durable growth and strong profitability in the long term.

4. Conclusion

Toast Inc.'s financial results for Q4 and the full year 2024 reflect a period of significant growth and turnaround. With a solid performance and a strategic focus on expanding its customer base and enhancing its platform, Toast is poised for continued success in the competitive landscape of digital technology solutions for restaurants. Investors and stakeholders will be keenly watching how the company navigates its growth strategy in 2025 and beyond.

Original press release