Toast Shares Plummets 3.71 as 970M Trading Volume Propels It to 96th Most Active Stock Amid Q2 Growth and Strategic Expansion

On August 6, 2025, Toast (TOST) closed down 3.71% with a trading volume of $970 million, up 41.77% from the prior day. The stock ranked 96th in market activity, reflecting heightened investor attention ahead of its Q2 earnings report.

The company added a record 8,500 net new locations in Q2, expanding its total to 148,000. Recurring gross profit grew 35% year-over-year, while adjusted EBITDA reached $161 million. Annual Recurring Revenue (ARR) rose 31%, driven by strong adoption in enterprise, international, and retail segments. Strategic partnerships, including one with American Express, enhanced reservation systems and personalized dining experiences. New products like Toast Go 3 and AI-powered ToastIQ underscored the firm’s focus on operational efficiency and customer retention.

Despite robust growth, challenges emerged. Tariff expenses are expected to rise in the second half of 2025, potentially squeezing margins. Heavy investments in international expansion and new customer segments, such as retail, may strain short-term profitability. The enterprise segment, though growing, faces longer sales cycles. Toast also highlighted a decline in Toast Capital’s gross profit contribution to $40 million, down from $47 million in the prior quarter, signaling volatility in ancillary revenue streams.

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