Olo’s Q1 Surge: A Tipping Point for Restaurant Tech?

Let’s cut to the chase: Olo Inc. (NYSE: OLO) just delivered a quarter that’s making investors sit up and take notice. With revenue soaring 21% year-over-year and net income turning decisively positive, this digital ordering platform for restaurants is proving it can thrive in a tough economy. But is this a fleeting blip or the start of something big? Let’s dig into the numbers and see why Olo might be the hidden gem in the restaurant tech space.

First, the headline stats: Q1 revenue hit $80.7 million, blowing past guidance and marking Olo’s fastest growth in years. The real magic? Profitability. After years of losses, net income flipped to $1.8 million—a stark reversal from the $2.4 million loss in Q1 2024. Even better, non-GAAP operating income more than doubled to $11.5 million, signaling that Olo’s cost discipline is finally paying off.

The metrics that matter most are firing on all cylinders. Average revenue per unit (ARPU) jumped 12% to $911, showing Olo isn’t just adding customers—it’s getting existing clients to spend more. The dollar-based net revenue retention rate (NRR) held steady at 111%, meaning restaurants are upgrading their subscriptions rather than fleeing. And with 88,000 active locations (up 8% year-over-year), Olo’s ecosystem is growing both wider and deeper.

But here’s the secret sauce: data-driven innovation. Olo’s new Guest Intelligence tool (still in beta) promises to turn the terabytes of order data it processes into actionable insights for restaurants. Think of it as “Google Analytics for restaurants”—helping chains like Rubio’s or Swensons understand customer preferences, loyalty patterns, and even predict demand. Pair that with its Catering+ and Engage loyalty tools, and Olo is building a “Guest Data Flywheel” that keeps customers coming back.

The sales team just got a major upgrade too. Hiring Parrish Chapman as Chief Sales Officer—fresh from scaling GRUBBRR’s kiosk business—could supercharge Olo’s push into enterprise deals. Remember, 750+ brands already trust Olo, but big names like Ben & Jerry’s and Gong Cha deploying Olo Pay and Olo Rails this quarter show the platform is now a must-have for any restaurant serious about digital.

Now, let’s look at the stock:

Olo’s shares have risen over 13% since its last earnings report, and this quarter’s results sent it climbing another 0.9% after hours. But here’s the kicker: Olo’s $401.8 million cash hoard gives it runway to weather any slowdown. With 2025 guidance calling for $338.5–340 million in revenue and $48.6–49.8 million in non-GAAP operating income, this isn’t just a flash in the pan—it’s a company hitting its stride.

Don’t forget the bigger picture: Digital ordering now accounts for 18.6% of U.S. restaurant transactions, up from 15% in 2019. Restaurants are under siege from rising costs and traffic declines, so investing in tech that cuts waste and boosts repeat customers is non-negotiable. Olo’s $29 billion in GMV processed in 2024 and its 400+ ecosystem partners (from delivery apps to payment providers) mean it’s not just a vendor—it’s the nervous system of the modern restaurant.

Of course, risks linger. Restaurants could cut tech budgets if the economy tanks, or competitors like Toast or Upserve could steal market share. But Olo’s 111% NRR suggests customers aren’t just sticking around—they’re doubling down. And with $2.8 billion in GPV (gross profit volume) flowing through its platform, Olo’s data flywheel is now a self-reinforcing engine.

Conclusion: Olo isn’t just a winner in restaurant tech—it’s the operating system for an industry in flux. With margin improvements, a fortress balance sheet, and a product roadmap that’s eating into every part of the dining experience (ordering, payment, loyalty), this quarter’s results aren’t an anomaly. They’re the start of something massive.

If you’re in the market for a stock that’s turning a corner with real, scalable growth, Olo’s Q1 report is a green light. Just keep an eye on that $8 price tag—because if Olo keeps executing like this, it won’t be $8 for long.

Investors: This is a play for the next phase of restaurant tech. Buckle up.