Toast FY 2025 earnings snapshot

Toast (TOST) reported first half FY 2025 revenue of US$2.9b with basic EPS of US$0.24, setting the tone for a year where profitability is firmly in focus. The company has seen revenue move from US$2.3b in the first half of 2024 to US$2.6b in the second half and then to US$2.9b in the first half of 2025. Over the same periods, basic EPS shifted from a loss of US$0.13 in early 2024 to US$0.16 and then US$0.24. With trailing net margins now higher than a year ago and earnings growth metrics pointing sharply upward, investors are likely to focus on how durable this margin profile looks heading into the rest of FY 2025.

With the headline numbers on the table, the next step is to see how these results line up with the most common stories around Toast, highlighting where the narrative fits the data and where it might need a rethink.

Margins Firm Up With 5.6% Net Profit

• Over the last 12 months, Toast generated US$6.2b in revenue and US$342 million in net income (excluding extra items), which works out to a 5.6% net profit margin compared with 0.4% in the prior year period.
• What bullish investors like is that this higher 5.6% margin lines up with their view that software and fintech can carry more earnings over time, but it also sets a bar:
  • Bulls are talking about margins moving from around 4.7% to 11.7% within a few years, and today’s 5.6% is still well below that destination.
  • The sharp earnings jump over the past year is very large at about 1700%, which supports the bullish story, yet it also means future periods will be compared against a much higher base.

Bulls argue these margins are just the starting point for a bigger profitability story, so if you want to see how that case is built out in detail, 🐂 Toast Bull Case

Earnings Swing From US$69m Loss To Profit

• Semiannual numbers tell the story of that shift: in the first half of 2024 Toast recorded a net loss of US$69 million, then reported net income of US$88 million in the second half of 2024 and US$136 million in the first half of 2025, with basic EPS moving from a loss of US$0.13 to US$0.16 and then US$0.24.
• Skeptical investors point out that bearish scenarios still look demanding relative to these figures:
  • Even the cautious narrative assumes earnings rising from about US$273 million to US$574.5 million by 2028, which is a big step up from the trailing US$342 million net income and requires that this recent swing into profit not only holds but grows.
  • Bears also highlight that this growth is expected to come while margins only move from roughly 4.7% to 6%, so the recent move into profitability does not, by itself, settle the debate about how much earnings headroom is left.

If you want to see how skeptics frame that tension between recent profits and future expectations, 🐻 Toast Bear Case

Premium P/E Meets US$33.35 DCF Value

• At a share price of US$27.33, Toast trades on a trailing P/E of 47.1x, above both the cited peer average of 28.7x and the industry at 16x, while the supplied DCF fair value sits higher at US$33.35.
• Consensus style thinking tries to balance those signals, and the numbers cut both ways:
  • On one side, revenue is forecast to grow about 14.9% per year and earnings about 24.4% per year, which helps explain why the market is currently paying more than peers on a P/E basis.
  • On the other, the P/E premium means a lot of that growth is already reflected in the price, even though the DCF fair value being above the current share price points to some room between what the cash flow model implies and where the stock trades today.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Toast on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See the numbers in a different light? If this data sparks a different angle, shape your own view in just a few minutes with Do it your way

A great starting point for your Toast research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

See What Else Is Out There

Toast’s premium 47.1x P/E, reliance on still maturing margins, and ambitious earnings expectations leave little room if the profitability story stalls.

If that mix of rich pricing and execution risk feels tight, you may want to balance it with our 85 resilient stocks with low risk scores that focus on more resilient profiles.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.