Toast Adds 7,500 Locations in the Third Quarter

Toast Inc. is coming on strong when it comes to adding new locations for its point-of-sale system, with 7,500 net new locations added in the third quarter. That brings it locations total to 156,000 globally as of Sept. 30. It added 8,500 locations in the second quarter and more than 6,000 in the first quarter. Toast is well known for its restaurant POS systems and services.

Boston-based Toast says some of the new locations in 2025 include 200 dining locations at Nordstrom department stores and at TGI Fridays and Applebee’s restaurants.

Among its latest services are Toast IQ, what it calls an intelligence engine intended to offer personalized recommendations, and Toast Advertising, which enables operators to launch campaigns across Google and Meta. In October, Toast added a conversational artificial intelligence assistant to Toast IQ.

Since an early October launch, more than 25,000 restaurants have used Toast IQ more than 235,000 times, says Aman Narang, Toast chief executive, according to an Investing.com transcript of Tuesday’s earnings call with analysts.

“The product gets better every day as we expand its data sources and deepen integrations across the platform. As an example, we’re also partnering with brands like Coca-Cola to help restaurants increase drink sales through data-driven recommendations,” Narang said.

Toast also struck up partnerships, such as a deal with Uber Technologies Inc. to help U.S. and Canadian restaurants with their digital ordering, guest experience, customer marketing, and sales efforts, and working with two American Express Co. restaurant platforms, Resy and Tock. It also launched earlier this year the Toast Go 3 handheld device that has cellular connectivity, too.

Toast says its annualized recurring run rate, which measures the scale of its subscription and payment-processing services for new and existing customers, increased 30% year-over-year to $2 billion. “Our goal is to maximize long-term shareholder value by building a durable growth business that compounds ARR over time. It took us more than 10 years to reach our first $1 billion in ARR and just two years to double it,” Narang said.

For the quarter, Toast posted $1.63 billion in revenue, up 24.4% from $1.31 billion in the third quarter of 2024. Its net income of $105 million increased 87.5% from $56 million a year prior. Its gross payment volume, which it calls a key measure of the scale of its platform, totaled $51.5 billion in the third quarter, a 24% increase from $41.7 billion year-over-year.