Olo Surpasses Q2 Revenue Expectations, Partners with Thoma Bravo: A Comprehensive Analysis

Olo's Q2 revenue reached $85.7 million, surpassing the consensus estimate of $82.2 million. The company has a strong financial health, with revenue growth of 19.1% over the past year, a positive net margin of 1.09%, and a current ratio of 7.93. Olo's valuation metrics are close to historical highs, with a P/E ratio of 518, and a neutral recommendation score from analysts. The company's recent partnership with Thoma Bravo is expected to enhance its mission of ensuring every restaurant guest feels like a regular.

Olo Inc. (NYSE: OLO) reported its second-quarter 2025 financial results, with revenue reaching $85.7 million, surpassing the consensus estimate of $82.2 million. The company's quarterly earnings per share (EPS) were $0.07, slightly missing the analyst forecast of $0.075. Over the past year, Olo has demonstrated strong financial health, with revenue growth of 22% year-over-year (YoY) [1].

Key financial highlights for the period include a positive net margin of 1.09% and a current ratio of 7.93, indicating robust liquidity. The company's valuation metrics are close to historical highs, with a price-to-earnings (P/E) ratio of 518. Analysts have given the stock a neutral recommendation score, with the average rating being "hold" [2].

Olo's recent partnership with Thoma Bravo, announced in July 2025, is expected to enhance the company's mission of ensuring every restaurant guest feels like a regular. The acquisition, valued at $2.0 billion in all-cash terms, has led to the suspension of future public financial guidance [3].

Olo's quarterly results were driven by a 9% increase in active restaurant locations, reaching approximately 89,000. The company's average revenue per unit (ARPU) increased 12% YoY to approximately $955, reflecting deeper product adoption and expanded platform use. Customer expansion remained a notable strength, with net revenue retention registering at 114% for Q2 2025 [3].

Despite the strong revenue performance, Olo faced some profitability challenges. Gross margin (Non-GAAP) narrowed from 63% to 57% for Q2 2025, and the company recorded a GAAP operating loss of $2.7 million. General and administrative expenses (GAAP) increased 86% YoY in Q2 2025, partly due to $2 million in merger-related costs. However, Olo generated positive non-GAAP free cash flow of $24.0 million in Q2 2025, up from $14.2 million in Q2 2024 [3].

Looking ahead, investors will closely monitor Olo's earnings outlook and the impact of the pending acquisition on its future performance. The company's recent financial results and strong revenue growth suggest a positive outlook, but the suspension of financial guidance may introduce uncertainty.

References:
[1] https://finance.yahoo.com/news/olo-inc-olo-q2-earnings-214002762.html
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX6B855F:0-restaurant-technology-provider-olo-q2-revenue-beats-estimates/
[3] https://www.aol.com/finance/olo-olo-q2-revenue-jumps-131530813.html