Toast’s shares rose 5.5% after earnings. Recurring gross profit streams grew 27% year over year, while management cited 26% GAAP operating income margin and continued customer additions.
- Toast added 8,500 net new locations in Q3 and said it gained share across every customer segment.
- Toast IQ Grow is on track to reach $10 million in ARR by year-end; Morning Mugs reported nearly $100,000 in year-over-year marketing-attributed sales growth after adopting it.
- Restaurants using Scheduling Pro averaged 41% fewer overtime hours per employee. One customer, Madi Group, said labor costs fell from 28% to almost 24% of sales.
- Management is expanding into AI agents for marketing and labor management, with plans to address additional workflows such as inventory and bookkeeping.
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