Shares of Toast, Inc. (TOST) surged 7.78% in the past 24 hours, following the release of its impressive first-quarter 2025 financial results and raised guidance. The restaurant technology company's strong performance and strategic moves have sparked investor enthusiasm in Thursday's trading session.

Toast reported adjusted earnings of 9 cents per share for the quarter ended March 31, matching analyst expectations and marking a significant improvement from the 15 cents per share loss in the same quarter last year. Revenue rose 24.4% to $1.34 billion, aligning perfectly with analyst projections. The company also reported a quarterly net income of $56 million, demonstrating its ability to generate profit in a competitive market.

Adding to the positive sentiment, Toast raised its fiscal year 2025 adjusted EBITDA guidance to $540 million-$560 million from the previous $510 million-$530 million. This upward revision reflects the company's confidence in its growth trajectory and operational efficiency. Furthermore, Toast announced a new agreement with Topgolf to implement Toast Enterprise Solutions across its venues in the United States, showcasing the company's expanding reach in the hospitality sector.

The strong quarterly results were underpinned by impressive key metrics. Annual Recurring Revenue (ARR) as of March 31, 2025, reached $1.7 billion, up 31% year-over-year. Total Locations increased 25% year-over-year to approximately 140,000, while Gross Payment Volume (GPV) grew 22% to $42.2 billion. These figures highlight Toast's continued expansion and growing market presence.

Wall Street maintains a bullish outlook on Toast, with the current average analyst rating at "buy" and a median 12-month price target of $42.00. The positive earnings report and raised guidance have further bolstered analyst confidence, with the mean earnings estimate for the company rising by about 76.7% over the last three months.

As Toast continues to innovate and expand its platform, investors appear optimistic about the company's potential for sustained growth in the restaurant technology sector. The stock's significant rise reflects growing confidence in Toast's ability to capitalize on opportunities in both its core business and new verticals, including international, retail, and enterprise markets.