Olo Inc.

Total revenue was $80.7 million in Q1 2025, up 21% year over year, and platform revenue was $79.2 million, up 20%. Gross profit was $49.2 million, up 18% year over year, with gross margin at 60.9%; excluding about $1 million of one-time Olo Pay cost of revenue adjustments, gross profit growth would have been about 16% and gross margin roughly in line with the prior quarter. Operating income was $11.5 million versus $5.6 million a year ago, operating margin was 14.3%, and net income was $11.8 million or $0.07 per share. Cash, cash equivalents and short- and long-term investments totaled about $402 million as of March 31, 2025. For Q2 2025, Olo guided to revenue of $82 million-$82.5 million and non-GAAP operating income of $11.5 million-$11.8 million. For full-year 2025, it guided to revenue of $338.5 million-$340 million and non-GAAP operating income of $48.6 million-$49.8 million.

Noah Glass said Olo exited Q1 with momentum from 2024, citing roughly 2,000 net new locations, better-than-expected revenue and non-GAAP operating income, and progress on 2025 priorities around Catering Plus, Olo Pay card presence, and flywheel brands. He framed Chipotle’s pilot and the new Olo Pay card-present win as validation of the platform’s modularity and of the guest data flywheel strategy. His tone was confident but measured, emphasizing that Olo is a mission-critical partner in a macro environment marked by rising costs and uncertainty.

Peter Benevides highlighted that Q1 gross profit was $49.2 million, gross margin was 60.9%, operating income was $11.5 million, and net income was $11.8 million or $0.07 per share. He said roughly $1 million of one-time cost of revenue adjustments related to Olo Pay lifted gross profit and margin, and without that benefit gross margin would have been roughly flat versus Q4. On cash, he noted $402 million in cash and investments, operating cash flow of $0.5 million, and free cash flow of negative $1.9 million, which would have been about $4 million normalized for a partner payment-term change. He also said full-year gross margins are expected to come down by about 250 to 275 basis points as card-present scales, while still expecting gross profit Rule of 40 to be met or exceeded in Q4.

Analysts focused on the Chipotle pilot, asking whether it displaced a competitor, what it means for top-25 brands, and how long the pilot will last; Noah said Chipotle had been using a homegrown catering platform and chose Olo for Catering Plus features and multi-module capability, with the pilot running in a subset of stores through mid-year. Questions also centered on the gross margin lift from Olo Pay; Peter said about $1 million of one-time benefit came from a new processor agreement and debit/credit mix, and that the latter would be upside if it persists rather than a modeled assumption. Analysts pressed on macro and tariff effects; Noah said customers are seeing another layer of pressure but limited service and enterprise chains are holding up better, with signs of trade-down behavior visible in ordering trends. Management was also asked about competitive positioning and new sales leadership, and Noah/Peter emphasized mission-critical status, high gross revenue retention, and Parrish Chapman’s mandate to focus on bookings and customer growth.