Added a record 8,500 net new Locations in second quarter 2025

Annualized recurring run-rate (ARR) as of June 30, 2025 grew 31% to $1.9 billion

Net income was $80 million and Adjusted EBITDA was $161 million in second quarter

Toast enters strategic multi-year partnership with American Express

Toast (NYSE:TOST), the all-in-one digital technology platform built for restaurants, today reported financial results for the second quarter ended June 30, 2025.

"I'm proud of the team for delivering another strong quarter - we added a record 8,500 net new locations, recurring gross profit¹ grew 35% year over year, and Adjusted EBITDA scaled to $161 million. Both our core U.S. restaurant business and our new market segments performed very well, with enterprise, international, and food and beverage retail passing 10,000 live locations. We are thrilled to welcome another 1,300+ unit chain to Toast as we continue to move upmarket and our international team has launched our first customer in Australia. We are also excited to announce the release of Toast Go® 3, our most powerful handheld yet, as well as a partnership with American Express aimed at delivering personalized experiences and expanding guest reach to help our customers provide better hospitality and grow. We're building a platform to help local businesses thrive and I've never been more confident in our ability to deliver on that ambition and lead this industry," said Aman Narang, Toast CEO and Co-Founder.

Financial Highlights for the Second Quarter of 2025

ARR increased 31% year over year to $1.9 billion as of June 30, 2025.
Total Locations increased 24% year over year to approximately 148,000.
Gross Payment Volume (GPV) increased 23% year over year to $49.9 billion.
GAAP subscription services and financial technology solutions gross profit grew 35% year over year to $447 million. Non-GAAP subscription services and financial technology solutions gross profit grew 35% year over year to $464 million.
GAAP income from operations was $80 million in Q2 2025 compared to GAAP income from operations of $5 million in Q2 2024.
GAAP net income was $80 million in Q2 2025 compared to GAAP net income of $14 million in Q2 2024. Adjusted EBITDA was $161 million in Q2 2025 compared to Adjusted EBITDA of $92 million in Q2 2024.
Net cash provided by operating activities of $223 million and Free Cash Flow of $208 million in Q2 2025, compared to net cash provided by operating activities of $124 million and Free Cash Flow of $108 million, in Q2 2024.

Percentages may not tie due to rounding. For more information on the non-GAAP financial measures and key metrics discussed in this press release, please see the sections titled "Key Business Metrics" and "Non-GAAP Financial Measures," as well as the reconciliations of non-GAAP financial measures to their nearest comparable GAAP financial measures at the end of this press release.

Outlook²

For the third quarter ending September 30, 2025, Toast expects to report:

Non-GAAP subscription services and financial technology solutions gross profit in the range of $465 million to $475 million (23-26% growth compared to Q3 2024)
Adjusted EBITDA in the range of $140 million to $150 million

For the full year ending December 31, 2025, Toast expects to report:

Non-GAAP subscription services and financial technology solutions gross profit in the range of $1,815 million to $1,835 million (28-29% growth compared to 2024, up from 25-27% growth)
Adjusted EBITDA in the range of $565 million to $585 million (up from $540 million to $560 million)

The outlook provided above constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks. See cautionary note regarding "Forward-looking Statements" in this press release.

Recent Business Highlights

Toast announced a strategic multi-year partnership with American Express to explore opportunities to help drive more guests to dining venues and power personalized hospitality experiences across the vast networks of Resy, Tock, and Toast restaurant locations in the United States. This collaboration intends to enable diners to discover and book across an expanded Toast network and will look to provide restaurants with tools that can help seamlessly deepen in-person hospitality for diners through more personalized touch points.
Toast recently took its first customer live in Australia - Graze Craze - expanding its international presence beyond the United Kingdom, Ireland, and Canada, and marking another step towards building the leading global technology platform for restaurants.
Toast introduced the Toast Go® 3 handheld point-of-sale device, designed to help restaurants deliver faster, smarter service — anywhere. Toast Go® 3 is lighter, more compact and more durable than before. It is the only handheld that combines ToastIQ, Toast's intelligence engine, with built-in cellular connectivity, enabling staff to take orders, process payments, and print receipts over both Wi-Fi and cellular networks, with seamless switching between them. ToastIQ features are designed to deliver timely prompts, personalized recommendations, and automated workflows for transforming daily restaurant operations.
Toast is proud to partner with 20 of the 28 restaurants winning 2025 James Beard Awards, which recognize excellence in the culinary arts, food and beverage, and hospitality industries. Toast customers were recognized at this year's awards in categories including Best New Restaurant, Outstanding Restaurateur, Outstanding Bar, and Outstanding Pastry Chef or Baker, among others.

Conference Call Information

Toast will host a live conference call at 5:00 p.m. Eastern Time on Tuesday, August 5, 2025. The live webcast of the conference call can be accessed through Toast's investor relations website at http://investors.toasttab.com. A replay of the webcast will be available for a period of 90 days after the call.

Toast has used, and intends to continue to use, its Investor Relations website (http://investors.toasttab.com), as well as the Toast Newsroom (https://pos.toasttab.com/news), as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Information on or that can be accessed through Toast's Investor Relations website, or that is contained in any website to which a hyperlink is provided herein is not part of this press release, and the inclusion of Toast's Investor Relations website address, and any hyperlinks are only inactive textual references.

About Toast

Toast is a cloud-based, all-in-one digital technology platform purpose-built for the entire restaurant community. Toast provides a comprehensive platform of software as a service (SaaS) products and financial technology solutions that give restaurants everything they need to run their business across point of sale, payments, operations, digital ordering and delivery, marketing and loyalty, and team management. We serve as the restaurant operating system, connecting front of house and back of house operations across service models including dine-in, takeout, delivery, catering, and retail. Toast helps restaurants streamline operations, increase revenue and deliver amazing guest experiences. For more information, visit www.toasttab.com.

___________________________

¹ Toast considers Non-GAAP subscription services and financial technology solutions gross profit to be its recurring gross profit streams.

² A reconciliation of these forward looking Non-GAAP measures to the corresponding GAAP measure is not available without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliations that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to the change in fair value of our warrant liability and stock-based compensation. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results.

Forward-looking Statements

This press release contains "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statement and generally arise when Toast or its management is discussing its beliefs, estimates or expectations. Such statements generally include the words "believes," "plans," "intends," "targets," "may," "could," "should," "will," "expects," "estimates," "suggests," "anticipates," "outlook," "continues," or similar expressions. These statements are not historical facts or guarantees of future performance, but represent the beliefs of Toast and its management at the time the statements were made regarding future events which are subject to certain risks, uncertainties and other factors, many of which are outside Toast's control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. Forward-looking statements include, without limitation, statements about expected financial positions or growth; results of operations; cash flows; guidance on financial results for the third fiscal quarter and full year of 2025; Toast's partnership with American Express; the expectations of demand for Toast's products and growth of its business; international expansion plans; statements about new products and offerings and the benefits thereof; the growth rates in the markets in which Toast competes; Toast's investments in technology and infrastructure; Toast's ability to deliver innovative solutions; Toast's ability to attract and retain customers and the commitments from its customers; financing plans; business strategy; operating plans; competitive positions; and growth opportunities for existing products.

The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in Toast's filings with the Securities and Exchange Commission ("SEC"), including in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations'' in Toast's Annual Report on Form 10-K for the year ended December 31, 2024, Toast's Quarterly Report on Form 10-Q for the three months ended June 30, 2025 that will be filed following this earnings release, and Toast's subsequent SEC filings. Toast can give no assurance that the plans, intentions, expectations or strategies as reflected in or suggested by those forward-looking statements will be attained or achieved. The forward-looking statements in this release are based on information available to Toast as of the date hereof, and Toast disclaims any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing Toast's views as of any date subsequent to the date of this press release.

The use of the term "partner" or "partnering" in this release does not mean or imply a formal legal partnership and is not meant in any way to alter the terms of the relationship between American Express and Toast.

TOAST, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in millions, except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Revenue:
Subscription services	$	227		$	166		$	436		$	318
Financial technology solutions		1,276			1,023			2,358			1,896
Hardware and professional services		47			53			93			104
Total revenue		1,550			1,242			2,887			2,318
Costs of revenue:
Subscription services		64			53			130			103
Financial technology solutions		992			806			1,823			1,488
Hardware and professional services		101			96			194			188
Amortization of acquired intangible assets		1			1			2			2
Total costs of revenue		1,158			956			2,149			1,781
Gross profit		392			286			738			537
Operating expenses:
Sales and marketing		141			115			274			222
Research and development		91			87			175			169
General and administrative		79			75			158			149
Restructuring expenses		1			4			8			46
Total operating expenses		312			281			615			586
Income (loss) from operations		80			5			123			(49	)
Other income (expense):
Interest income, net		11			10			23			20
Change in fair value of warrant liability		(8	)		(1	)		(5	)		(37	)
Other income (expense), net		—			—			—			(1	)
Income (loss) before taxes		83			14			141			(67	)
Income tax (expense) benefit		(3	)		—			(5	)		(2	)
Net income (loss)	$	80		$	14		$	136		$	(69	)
Net income (loss) per share attributable to common stockholders:
Basic	$	0.14		$	0.03		$	0.24		$	(0.13	)
Diluted	$	0.13		$	0.02		$	0.23		$	(0.13	)
Weighted-average shares used in computing net income (loss) per share:
Basic		580			556			577			552
Diluted		605			587			604			552

TOAST, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in millions)

	June 30, 2025			December 31, 2024
Assets:
Current assets:
Cash and cash equivalents	$	1,194		$	903
Marketable securities		508			514
Accounts receivable, net		121			115
Inventories, net		103			118
Other current assets		391			325
Total current assets		2,317			1,975
Property and equipment, net		96			98
Operating lease right-of-use assets		22			25
Intangible assets, net		17			20
Goodwill		113			113
Restricted cash		63			59
Other non-current assets		139			118
Total non-current assets		450			433
Total assets	$	2,767		$	2,408
Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable	$	49		$	37
Deferred revenue		60			59
Accrued expenses and other current liabilities		785			715
Total current liabilities		894			811
Warrants to purchase common stock		27			22
Operating lease liabilities, non-current		19			24
Other long-term liabilities		9			6
Total liabilities		949			863
Commitments and Contingencies
Stockholders' Equity:
Preferred stock		—			—
Common stock		—			—
Accumulated other comprehensive income (loss)		2			(1	)
Additional paid-in capital		3,284			3,150
Accumulated deficit		(1,468	)		(1,604	)
Total stockholders' equity		1,818			1,545
Total liabilities and stockholders' equity	$	2,767		$	2,408

TOAST, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in millions)

	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Cash flows from operating activities:
Net income (loss)	$	80		$	14		$	136		$	(69	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		16			12			35			23
Stock-based compensation expense		60			67			120			133
Amortization of deferred contract acquisition costs		25			19			48			38
Change in fair value of warrant liability		8			1			5			37
Credit loss expense		18			17			40			32
Asset impairments		—			1			—			1
Other non-cash items		—			(1	)		—			(3	)
Changes in operating assets and liabilities:
Accounts receivable, net		(7	)		(23	)		(16	)		(45	)
Other current assets		2			5			(10	)		(14	)
Deferred contract acquisition costs		(40	)		(33	)		(73	)		(63	)
Inventories, net		8			10			15			8
Accounts payable		3			(14	)		13			2
Accrued expenses and other current liabilities		53			38			(3	)		1
Deferred revenue		3			13			2			24
Operating lease right-of-use assets and operating lease liabilities, net		(1	)		—			(1	)		—
Other assets and liabilities		(5	)		(2	)		(9	)		(1	)
Net cash provided by operating activities		223			124			302			104
Cash flows from investing activities:
Capital expenditures		(15	)		(16	)		(25	)		(29	)
Purchases of marketable securities		(171	)		(131	)		(281	)		(276	)
Proceeds from the sale of marketable securities		57			35			97			53
Maturities of marketable securities		91			108			193			219
Net cash (used in) investing activities		(38	)		(4	)		(16	)		(33	)
Cash flows from financing activities:
Payments of issuance costs of the revolving credit facility		(3	)		—			(3	)		—
Change in customer funds obligations, net		(19	)		(21	)		45			28
Proceeds from issuance of common stock		14			26			40			55
Repurchases of Class A common stock		(14	)		(32	)		(31	)		(36	)
Net cash provided by (used in) financing activities		(22	)		(27	)		51			47
Effect of exchange rate changes on cash and cash equivalents and restricted cash		3			—			3			(1	)
Net increase in cash, cash equivalents, cash held on behalf of customers and restricted cash		166			93			340			117
Cash, cash equivalents, cash held on behalf of customers and restricted cash at beginning of period		1,259			771			1,085			747
Cash, cash equivalents, cash held on behalf of customers and restricted cash at end of period	$	1,425		$	864		$	1,425		$	864
Reconciliation of cash, cash equivalents, cash held on behalf of customers and restricted cash
Cash and cash equivalents	$	1,194		$	691		$	1,194		$	691
Cash held on behalf of customers		168			115			168			115
Restricted cash		63			58			63			58
Total cash, cash equivalents, cash held on behalf of customers and restricted cash	$	1,425		$	864		$	1,425		$	864

Non-GAAP Financial Measures

In this press release, Toast refers to non-GAAP financial measures that are derived on the basis of methodologies other than in accordance with United States generally accepted accounting principles ("GAAP"). Toast uses certain non-GAAP financial measures, as described below, to understand and evaluate its core operating performance. These non-GAAP financial measures, which may be different than similarly-titled measures used by other companies, are presented to enhance investors' overall understanding of Toast's financial performance and should not be considered substitutes for, or superior to, the financial information prepared and presented in accordance with GAAP. Toast believes that these non-GAAP financial measures provide useful information about its financial performance, enhance the overall understanding of its past performance and future prospects, and allow for greater transparency with respect to important metrics used by Toast's management for financial and operational decision-making.

In the tables below, Toast has provided reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP. These non-GAAP financial measures should not be considered substitutes for financial measures calculated in accordance with GAAP, and the financial results that Toast calculates and presents in the table in accordance with GAAP, as well as the corresponding reconciliations from those results, should be carefully evaluated.

The following are the non-GAAP financial measures referenced in this press release and presented in the tables below:

Adjusted EBITDA is defined as net income (loss), adjusted to exclude stock-based compensation expense and related payroll tax expense, depreciation and amortization expense, interest income (expense), net, income taxes and certain other items that are not considered to reflect our operating activities and performance within the ordinary course of business, such as restructuring and restructuring-related expenses, acquisition expenses, fair value adjustments on warrant liabilities, gain on warrant extinguishment, expenses related to early termination of leases (which includes associated asset impairments) and stock-based charitable contribution expense, as applicable.

Non-GAAP Subscription Services and Financial Technology Solutions Gross Profit is defined as subscription services gross profit and financial technology solutions gross profit, adjusted to exclude stock-based compensation expense and related payroll tax expense, and depreciation and amortization expense.

Non-GAAP Costs of Revenue are defined as costs of revenue excluding stock-based compensation expense and related payroll tax expense, and depreciation and amortization expense.

Non-GAAP Gross Profit is defined as gross profit excluding stock-based compensation expense and related payroll tax expense, and depreciation and amortization expense.

Non-GAAP Subscription Services Gross Profit is defined as subscription services gross profit excluding stock-based compensation expense and related payroll tax expense, and depreciation and amortization expense.

Non-GAAP Financial Technology Solutions Gross Profit is defined as financial technology solutions gross profit excluding stock-based compensation expense and related payroll tax expense, and depreciation and amortization expense.

Non-GAAP Hardware and Professional Services Gross Profit is defined as hardware and professional services gross profit excluding stock-based compensation expense and related payroll tax expense, and depreciation and amortization expense.

Non-GAAP Non-Payments Financial Technology Solutions Gross Profit is defined as financial technology gross profit excluding payments financial technology gross profit.

Non-GAAP Sales and Marketing Expenses are defined as sales and marketing expenses excluding stock-based compensation expense and related payroll tax expense, and depreciation and amortization expense.

Non-GAAP Research and Development Expenses are defined as research and development expenses excluding stock-based compensation expense and related payroll tax expense, and depreciation and amortization expense.

Non-GAAP General and Administrative Expenses are defined as general and administrative expenses excluding stock-based compensation expense and related payroll tax expense, depreciation and amortization expense, acquisition expenses, expenses related to early termination of leases (which includes associated asset impairments), and stock-based charitable contribution expense.

Free Cash Flow is defined as net cash provided by (used in) operating activities reduced by purchases of property and equipment and capitalization of internal-use software costs (collectively referred to as capital expenditures).

Adjusted EBITDA, Non-GAAP Subscription Services and Financial Technology Solutions Gross Profit, Non-GAAP Costs of Revenue, Non-GAAP Gross Profit, Non-GAAP Subscription Services Gross Profit, Non-GAAP Financial Technology Gross Profit, Non-GAAP Hardware and Professional Services Gross Profit, Non-GAAP Non-Payments Financial Technology Solutions Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses, and Free Cash Flow do not purport to represent profitability and liquidity measures as defined in accordance with GAAP. These measures are provided to investors and others to improve the quarter-to-quarter and year-to-year comparability of Toast's financial results and to ensure that investors understand the information Toast uses to evaluate the performance of its businesses.

Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations since they do not include the impact of certain expenses and cash flows that are reflected in our Consolidated Statements of Operations and Consolidated Statements of Cash Flows. Thus, our Adjusted EBITDA, Non-GAAP Subscription Services and Financial Technology Solutions Gross Profit, Non-GAAP Costs of Revenue, Non-GAAP Gross Profit, Non-GAAP Subscription Services Gross Profit, Non-GAAP Financial Technology Gross Profit, Non-GAAP Hardware and Professional Services Gross Profit, Non-GAAP Non-Payments Financial Technology Solutions Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses, and Free Cash Flow should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.

Key Business Metrics

In addition, Toast also uses the following key business metrics to help it evaluate its business, identify trends affecting its business, formulate business plans, and make strategic decisions:

Gross Payment Volume ("GPV") is defined as the sum of total dollars processed through the Toast payments platform across Toast Processing Locations in a given period. GPV is a key measure of the scale of Toast's platform, which in turn drives our financial performance. As Toast customers generate more sales and therefore more GPV, Toast generally sees higher financial technology solutions revenue.
Annualized Recurring Run-Rate ("ARR") is defined as a key operational measure of the scale of Toast's subscription and payment processing services for both new and existing customers. To calculate ARR, Toast first calculates recurring run-rate on a monthly basis. Monthly Recurring Run-Rate, or MRR, is measured on the final day of each month as the sum of (i) Toast's monthly billings of subscription services fees, which we refer to as the subscription component of MRR, and (ii) Toast's in-month adjusted payments services fees, exclusive of estimated transaction-based costs, which we refer to as the payments component of MRR. MRR does not include fees derived from Toast Capital or related costs. MRR is also not burdened by the impact of SaaS credits offered. The MRR calculation includes all locations on the Toast platform and locations on legacy solutions, which have a negligible impact on ARR.

ARR is determined by taking the sum of (i) twelve times the subscription component of MRR and (ii) four times the trailing-three-month cumulative payments component of MRR. Toast believes this approach provides an indication of its scale, while also controlling for short-term fluctuations in payments volume. ARR may decline or fluctuate as a result of a number of factors, including customers' satisfaction with the Toast platform, pricing, competitive offerings, economic conditions, or overall changes in Toast's customers' and their guests' spending levels. ARR is an operational measure, does not reflect Toast's revenue or gross profit determined in accordance with GAAP, and should be viewed independently of, and not combined with or substituted for, Toast's revenue, gross profit, and other financial information determined in accordance with GAAP. Further, ARR is not a forecast of future revenue and investors should not place undue reliance on ARR as an indicator of Toast's future or expected results.

Locations

We define a live location, or Location, as a unique location that has used Toast Point of Sale to record transaction volumes above a minimum threshold, and has not been marked as a churned location as of the date of determination. A Location can use Toast payment services, which we refer to as a Toast Processing Location, or for select enterprise customers, not use Toast's payment services, which we refer to as a Non-Toast Processing Location. Customers of legacy solutions provided by companies that we have acquired, that do not use Toast Point of Sale, are not included in our Location count.

Summary of Key Business Metrics and Non-GAAP Results (unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in billions)	2025		2024		% Growth		2025			2024	% Growth
Gross Payment Volume (GPV)	$	49.9	$	40.5	23	%	$	92.1	$	75.2	22	%

	As of June 30,
(dollars in millions)		2025		2024	% Growth
Payments Annualized Recurring Run-Rate	$	978	$	743	32	%
Subscription Annualized Recurring Run-Rate		950		730	30	%
Total Annualized Recurring Run-Rate (ARR)	$	1,928	$	1,473	31	%

Adjusted EBITDA	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2025			2024			2025			2024
Net income (loss)	$	80		$	14		$	136		$	(69	)
Stock-based compensation expense and related payroll tax		64			70			128			130
Depreciation and amortization		16			11			35			20
Interest income, net		(11	)		(10	)		(23	)		(20	)
Change in fair value of warrant liability		8			1			5			37
Termination of leases		—			2			—			2
Restructuring and restructuring-related expenses⁽¹⁾		1			4			8			46
Income tax expense		3			—			5			2
Adjusted EBITDA	$	161		$	92		$	294		$	148

⁽¹⁾Restructuring and restructuring-related expenses for the three and six months ended June 30, 2025 include $1 million and $5 million, respectively, of severance benefits and nil and $3 million, respectively, of stock-based compensation expense. Restructuring and restructuring-related expenses for the three and six months ended June 30, 2024 include $1 million and $32 million, respectively, of severance benefits, $2 million and $12 million, respectively, of stock-based compensation expense, and $1 million and $2 million, respectively, of accelerated depreciation related to facilities.

Non-GAAP Subscription Services and Financial Technology Solutions Gross Profit (Non-GAAP)	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in millions)	2025		2024		2025		2024
Gross profit (GAAP):
Subscription services	$	163	$	113	$	306	$	215
Financial technology solutions		284		217		535		408
Adjustments:
Stock-based compensation expense and related payroll tax		4		6		9		10
Depreciation and amortization		13		8		29		14
Non-GAAP Subscription Services and Financial Technology Solutions Gross Profit (Non-GAAP)	$	464	$	344	$	879	$	647

Non-GAAP Costs of Revenue	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2025			2024			2025			2024
Costs of revenue	$	1,158		$	956		$	2,149		$	1,781
Stock-based compensation expense and related payroll tax		(10	)		(12	)		(21	)		(22	)
Depreciation and amortization		(14	)		(9	)		(31	)		(17	)
Non-GAAP costs of revenue	$	1,134		$	935		$	2,097		$	1,742

Non-GAAP Gross Profit	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in millions)	2025		2024		2025		2024
Gross profit	$	392	$	286	$	738	$	537
Stock-based compensation expense and related payroll tax		10		12		21		22
Depreciation and amortization		14		9		31		17
Non-GAAP gross profit	$	416	$	307	$	790	$	576

Non-GAAP Subscription Services Gross Profit	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in millions)	2025		2024		2025		2024
Subscription services gross profit	$	163	$	113	$	306	$	215
Stock-based compensation expense and related payroll tax		4		6		9		10
Depreciation and amortization		13		8		29		14
Non-GAAP subscription services gross profit	$	180	$	127	$	344	$	239

Non-GAAP Financial Technology Solutions Gross Profit	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in millions)	2025		2024		2025		2024
Financial technology solutions gross profit	$	284	$	217	$	535	$	408
Stock-based compensation expense and related payroll tax		—		—		—		—
Depreciation and amortization		—		—		—		—
Non-GAAP financial technology solutions gross profit	$	284	$	217	$	535	$	408

Non-GAAP Hardware and Professional Services Gross Profit	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2025			2024			2025			2024
Hardware and professional services gross profit	$	(54	)	$	(43	)	$	(101	)	$	(84	)
Stock-based compensation expense and related payroll tax		6			6			12			11
Depreciation and amortization		—			1			—			1
Non-GAAP hardware and professional services gross profit	$	(48	)	$	(36	)	$	(89	)	$	(72	)

Non-GAAP Non-Payments Financial Technology Solutions Gross Profit	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2025			2024			2025			2024
Financial technology solutions gross profit	$	284		$	217		$	535		$	408
Payments financial technology solutions gross profit		(244	)		(183	)		(448	)		(340	)
Non-GAAP non-payments financial technology solutions gross profit	$	40		$	34		$	87		$	68

Non-GAAP Sales and Marketing Expenses	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2025			2024			2025			2024
Sales and marketing expenses	$	141		$	115		$	274		$	222
Stock-based compensation expense and related payroll tax		(15	)		(17	)		(31	)		(29	)
Depreciation and amortization		(2	)		(1	)		(2	)		(2	)
Non-GAAP sales and marketing expenses	$	124		$	97		$	241		$	191

Non-GAAP Research and Development Expenses	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2025			2024			2025			2024
Research and development expenses	$	91		$	87		$	175		$	169
Stock-based compensation expense and related payroll tax		(22	)		(23	)		(44	)		(43	)
Depreciation and amortization		—			(1	)		(1	)		(1	)
Non-GAAP research and development expenses	$	69		$	63		$	130		$	125

Non-GAAP General and Administrative Expenses	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2025			2024			2025			2024
General and administrative expenses	$	79		$	75		$	158		$	149
Stock-based compensation expense and related payroll tax		(17	)		(18	)		(32	)		(36	)
Depreciation and amortization		—			—			(1	)		—
Termination of leases		—			(2	)		—			(2	)
Non-GAAP general and administrative expenses	$	62		$	55		$	125		$	111

Free Cash Flow	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2025			2024			2025			2024
Net cash provided by operating activities	$	223		$	124		$	302		$	104
Capital expenditures		(15	)		(16	)		(25	)		(29	)
Free cash flow	$	208		$	108		$	277		$	75

Sums may not equal totals due to rounding.

TOST-FIN

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Toast Announces Second Quarter 2025 Financial Results