5 Must-Read Analyst Questions From Toast's Q2 Earnings Call

Toast’s second quarter results for 2025 came in ahead of Wall Street’s revenue and profit expectations but were met with a negative market reaction. Management identified new customer segment momentum, the addition of 8,500 net new locations, and continued product expansion as key drivers of the quarter’s growth. CEO Aman Narang highlighted the launch in Australia and the onboarding of major enterprise brands like Firehouse Subs as evidence of Toast’s expanding reach. The company’s operating margin improvement was attributed to disciplined investment and a focus on platform enhancements.

Is now the time to buy TOST? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Toast’s Q2 Earnings Call

• William Alfred Nance (Goldman Sachs): Asked about the drivers behind high retail ARPU and the mix of payments versus software. CEO Aman Narang said retail ARPU exceeded $10,000 due to product breadth and dedicated sales resources, adding, “We’re ahead of expectations.”
• Tien-Tsin Huang (JPMorgan): Queried margin pressures in the second half and the impact of tariffs and increased investment. CFO Elena Gomez clarified that increased investment in new segments and rising tariffs would reduce margins but are intended to support long-term growth.
• David E. Hynes (Canaccord): Probed competitive dynamics in enterprise sales. Narang stated that Toast faces mostly legacy on-premise competitors and that its cloud-based approach and in-store capabilities drive wins, not price competition.
• Timothy Edward Chiodo (UBS): Sought details on sales coverage strategy in core U.S. markets. Narang explained that productivity is up in well-penetrated markets and that Toast is adding targeted sales reps where underpenetrated, but sees no major shift in its direct strategy.
• Dan Dolev (Mizuho Securities): Asked about the American Express partnership’s impact. Narang described how integrating restaurant reservation platforms and personalized in-store experiences could enhance customer engagement and Toast’s platform value.

Catalysts in Upcoming Quarters

Looking ahead, our analysts will track (1) the pace of enterprise and international segment adoption, including the rollout of new markets like Australia, (2) the impact of incremental investments on both topline growth and operating margins, and (3) tangible progress in AI-driven product adoption, such as ToastIQ and Sous Chef. Execution on these fronts will be key to validating Toast’s strategy and long-term profitability targets.

Toast currently trades at $43.80, down from $47.71 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

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