Toast (TOST) Reports Q2: Everything You Need To Know Ahead Of Earnings

Restaurant software platform Toast (NYSE:TOST) will be reporting results this Tuesday afternoon. Here’s what investors should know.

Toast missed analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $1.34 billion, up 24.4% year on year. It was a strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

Is Toast a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Toast’s revenue to grow 22.2% year on year to $1.52 billion, slowing from the 27% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.22 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Toast has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Toast’s peers in the vertical software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Agilysys delivered year-on-year revenue growth of 20.7%, beating analysts’ expectations by 3.1%, and PTC reported revenues up 24.2%, topping estimates by 10.4%. Agilysys traded down 4.7% following the results while PTC was up 5.7%.

Read our full analysis of Agilysys’s results here and PTC’s results here.

The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the vertical software stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. Toast is up 4.6% during the same time and is heading into earnings with an average analyst price target of $45.88 (compared to the current share price of $46.90).

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