Olo Inc. (OLO): Business Model Canvas [Dec-2025 Updated]

You're looking at Olo Inc. (OLO) right as it shifts private under Thoma Bravo, a move clearly aimed at accelerating their platform strategy toward profitable growth. Honestly, the numbers from mid-2025 are compelling: they're running a platform across nearly 89,000 active restaurant locations, driving an Average Revenue Per Unit (ARPU) near $955 in Q2, and showing a strong 114% Net Revenue Retention. Before diving into the full nine blocks below, know this: their model hinges on owning the digital guest data across that massive footprint, which is the real engine behind their projected $338.5 million to $340.0 million revenue for the full year. Let's break down exactly how that engine is built.

Olo Inc. (OLO) - Canvas Business Model: Key Partnerships

You're looking at the engine room of Olo Inc. (OLO)'s growth, which is entirely built on its network effect with other technology and service providers. This interconnectedness is what allows Olo Inc. (OLO) to offer a truly open SaaS platform, which is key to its strategy, especially as it moves toward the close of its acquisition by Thoma Bravo for $10.25 per share in cash, valuing the equity at approximately $2.0 billion as of July 2025.

The strength of the platform is directly tied to the breadth and depth of these relationships. As of the second quarter of 2025, Olo Inc. (OLO) reports that over 750 restaurant brands trust the platform, supported by a network of more than 400 integration partners.

Ecosystem and Platform Integrations

The sheer number of technology integrations is a major barrier to entry for competitors. This ecosystem allows Olo Inc. (OLO) to embed its services deeply into the restaurant operator's existing tech stack, which is crucial for driving adoption of its Order, Pay, and Engage suites.

• Technology integrations with over 400 ecosystem partners.
• Borderless, the passwordless checkout feature, recently surpassed 19 million total accounts across more than 450 brands as of Q2 2025.
• The platform supported approximately 89,000 ending active locations as of June 30, 2025, a 9% year-over-year increase.

Here's a quick look at how these partnerships translate into operational scale and financial reach for Olo Inc. (OLO) as of mid-2025:

Strategic Payment Partnerships

The push into in-store payments is a significant strategic move, aiming to capture the remaining 82% of restaurant transactions that are on-premise, complementing the digital volume. The partnership with FreedomPay accelerates this by leveraging its gateway, which is integrated with over 1,000 POS and payment systems.

• Olo Pay uses Stripe for digital payments and now extends to in-person POS transactions for the majority of its 700+ customers.
• The FreedomPay integration allows Olo Inc. (OLO) to offer enterprise brands choice for in-store payment processing.
• This unification of digital and in-store transactions feeds into Olo Engage's Guest Data Platform (GDP), providing insight into nearly 100% of guest transactions.

Delivery Logistics Providers

Olo Inc. (OLO) manages delivery through two primary methods: Olo Rails for marketplace orders and Olo Dispatch for direct, white-label delivery. Dispatch is designed to offer nationwide coverage by automatically pairing orders with third-party couriers.

Olo Dispatch leverages a network of 27+ delivery service providers (DSPs) to offer same-hour delivery. To be fair, having 96% of Olo brands covered by two or more DSPs offers significant redundancy and choice.

• Olo Rails integrates orders from third-party marketplaces like Doordash, Uber, and Grubhub directly into the restaurant's POS.
• Grubhub expanded its relationship to integrate with Olo Dispatch, allowing merchants to use Grubhub's network on a per-order basis for direct orders.
• Brands using Dispatch see an average basket size increase of 35% compared to pickup orders.

Point-of-Sale (POS) System Vendors

Seamless integration with POS systems is non-negotiable; it's how Olo Inc. (OLO) ensures orders flow without disrupting in-store staff. Toast has long been a key partner, with orders inputting seamlessly into the system.

Olo Inc. (OLO) continues to expand its POS footprint to capture more of the 80% of transactions conducted in-store. For instance, Olo announced new partnerships with NCR Voyix and Qu to advance its full-stack pay functionality.

Cloud Infrastructure Providers

As a provider of a cloud-based, on-demand commerce platform, Olo Inc. (OLO) relies on major infrastructure players for the scalability needed to handle millions of daily orders. While the specific primary provider isn't always explicitly detailed in partnership announcements, the platform's nature requires robust, scalable cloud services.

The platform's ability to process transactions for an expected revenue range of $338.5 million to $340.0 million in fiscal year 2025 demands enterprise-grade cloud stability.

Olo Inc. (OLO) - Canvas Business Model: Key Activities

You're looking at the core engine room of Olo Inc. (OLO) operations as of late 2025. These aren't just tasks; they are the mechanisms driving the reported growth figures you see in their filings.

Software-as-a-Service (SaaS) platform development and maintenance

Keeping the platform reliable and pushing out new features is a significant capital commitment. For the year ended December 31, 2024, Olo Inc. capitalized internal-use software amounting to $11.811 million. This activity supports the continuous evolution, including the Summer 2025 release features like the Menu Intelligence dashboard and enhanced Catering+ management tools.

The operational focus here is on platform reliability, which underpins the network effect, serving over 750 restaurant brands as of the second quarter of 2025.

Integrating new restaurant locations (approximately 5,000 net new locations expected in 2025)

Onboarding new locations is a direct driver of the subscription revenue base. As of March 31, 2025, Olo Inc. reported approximately 88,000 ending active locations. By June 30, 2025, this grew to approximately 89,000 active locations. The company reaffirmed its full-year 2025 target of adding approximately 5,000 net new locations.

This location growth directly impacts the Average Revenue Per Unit (ARPU) metric:

Cross-selling the Pay and Engage product suites to existing clients

The increase in ARPU from $911 in Q1 2025 to $955 in Q2 2025 strongly suggests successful cross-selling of the higher-value Pay and Engage products into the existing base. The Dollar-based Net Revenue Retention (NRR) rates reflect this expansion success:

• Dollar-based Net Revenue Retention (NRR) for Q1 2025 was 111%.
• Dollar-based Net Revenue Retention (NRR) for Q2 2025 was 114%.

The Borderless (now Olo Accounts) feature, part of the engagement suite, has exceeded 19 million total accounts across more than 450 brands as of June 30, 2025.

Processing high-volume digital and in-store transactions

The platform is built to handle massive throughput, which is essential for the Olo Pay module. For the full year ended December 31, 2024, Olo Inc. processed approximately $2.8 billion in Gross Payment Volume (GPV). The strategy in 2025 is to penetrate the more than $100 billion in card-present gross payment volume within the existing base through the Olo Pay partnership with FreedomPay.

The scale of operations is evident in the revenue figures: Q2 2025 Total Revenue was $85.7 million, a 22% year-over-year increase.

Data security and compliance for payment processing

The introduction of Olo Pay, which consolidates in-store and online payments, directly impacts the cost structure due to the different margin profile of payment processing versus pure software. The Cost of Revenue in Q2 2025 was $41.8 million, representing 48% of total revenue. Olo Inc. guided that full-year 2025 gross margins are expected to decrease by approximately 250 to 275 basis points as Olo Pay card-present solutions are rolled out, reflecting the operational cost and compliance overhead associated with payment processing.

The platform supports this by capturing guest interactions in stores via Olo Pay, giving brands insights into nearly 100% of their guests across all touchpoints.

Finance: draft 13-week cash view by Friday.

Olo Inc. (OLO) - Canvas Business Model: Key Resources

You're looking at the core assets Olo Inc. relies on to run its business as of late 2025. These aren't just abstract concepts; they are quantifiable advantages built up over years of operation, especially as the company heads toward its acquisition by Thoma Bravo.

Proprietary open SaaS platform technology and intellectual property

The foundation here is the open Software as a Service (SaaS) platform itself, which connects the complex ecosystem of restaurant technology. This platform is trusted by over 750 restaurant brands. The technology's strength is its open nature, supported by a network of more than 400 integration partners. A key piece of IP demonstrating user adoption is the Borderless passwordless checkout feature, which recently surpassed 19 million total accounts across more than 450 brands.

Large, aggregated guest data asset from billions of orders

While the exact 'billions of orders' figure isn't explicitly stated in the latest reports, the scale of the data asset is evident through platform usage. The platform processes a massive volume of digital transactions, which feeds into the Guest Intelligence product suite. The direct, measurable output of this data aggregation is seen in the adoption of Borderless, which now has over 19 million user accounts, all contributing to a richer, more personalized guest profile for Olo Inc.'s customers.

Network effect from 89,000 active restaurant locations as of Q2 2025

The network effect is directly tied to the number of locations using the platform. As of the second quarter ended June 30, 2025, Olo Inc. reported approximately 89,000 active locations. This represented a 9% year-over-year increase. This scale is critical because it increases the value proposition for new and existing customers alike; more locations mean more integration opportunities and more data flowing through the system.

Highly skilled software engineering and product development teams

The continuous innovation seen in product launches like Borderless and the ongoing development of Olo Pay for card-present transactions point to significant investment in engineering talent. The company's ability to grow Average Revenue Per Unit (ARPU) by 12% year-over-year to approximately $955 in Q2 2025 suggests these teams are successfully driving deeper product adoption across the installed base.

Strong balance sheet with $428.5 million in cash as of June 30, 2025

Financial stability provides the runway for continued investment in the resources above, even amid the pending acquisition by Thoma Bravo. As of June 30, 2025, Olo Inc. reported that cash, cash equivalents, and short- and long-term investments totaled $428.5 million. This strong liquidity position supports ongoing operations and development efforts.

Here's a quick look at the operational scale supporting these resources as of Q2 2025:

The platform's stickiness is a key indicator of resource value, shown by the Dollar-based Net Revenue Retention (NRR) rate of 114% in Q2 2025. That means existing customers spent 14% more than they did the prior year, even before factoring in new customer wins. That's defintely a sign of value extraction.

• Platform powers digital ordering for over 750 restaurant brands.
• Network includes more than 400 integration partners.
• Borderless feature has exceeded 19 million total accounts.
• Cash and investments totaled $428.5 million on the balance sheet.

Finance: draft 13-week cash view by Friday.

Olo Inc. (OLO) - Canvas Business Model: Value Propositions

You're looking at the core value Olo Inc. (OLO) delivers to its restaurant customers, which is clearly reflected in its financial performance as of late 2025. The platform's value is rooted in creating a single, integrated digital ecosystem for restaurants.

The first major proposition is the unified digital ordering, payment, and engagement in one platform. This centralization helps streamline the entire digital transaction lifecycle. This is supported by the growth in specific features; for instance, Borderless, Olo Inc.'s passwordless checkout feature, recently exceeded 19 million total accounts across more than 450 brands as of the second quarter of 2025.

The financial results from the second quarter of 2025 show that customers are spending more on the platform, which translates directly into value for Olo Inc. and validates the platform's stickiness. Average Revenue Per Unit (ARPU) increased 12% year-over-year, hitting approximately $955 in Q2 2025. This metric demonstrates the company's ability to grow revenue within its existing customer base by encouraging deeper module adoption.

Also critical is the value derived from data ownership. Olo Inc. provides restaurants with the ownership of first-party guest data to drive personalized marketing. This capability is essential for restaurants looking to improve guest experience and drive profitable traffic, a key focus mentioned by Founder and CEO Noah Glass.

Operational efficiency is another pillar. The platform delivers value by streamlining operations by automating order flow and delivery dispatch. This automation capability supports the growth in scale, as Olo Inc. ended Q2 2025 with approximately 89,000 active locations, an increase of 9% year-over-year, adding approximately 1,000 locations from the quarter ended March 31, 2025.

The financial proof of customer satisfaction and expansion within the existing base is the high dollar-based net revenue retention (NRR) of 114% in Q2 2025. This means that even without adding a single new customer, Olo Inc.'s existing customer revenue base grew by 114% compared to the prior period's cohort revenue. For comparison, the NRR in Q1 2025 was 111%.

Here's a quick look at the key performance indicators from Q2 2025 that underscore these value propositions:

The platform's ability to drive revenue expansion is further evidenced by the overall financial growth. Total revenue for the quarter was $85.7 million, a 22% increase year-over-year. Also, Olo Inc. reported that cash, cash equivalents, and short- and long-term investments totaled $428.5 million as of June 30, 2025.

The value proposition is also seen in the platform's ability to scale across the enterprise segment. You can see this in the deployment activity:

• Enterprise brands saw multi-module new deployments, including Ben & Jerry's on Olo Ordering, Rails, and Olo Pay for card-not-present transactions in Q1 2025.
• Additional new deployments in Q1 2025 included Gong Cha and Pilot Travel Centers on Olo Rails.

To be fair, while the platform drives strong revenue retention, the GAAP gross profit margin compressed to 51% in Q2 2025, down from 57% year-over-year, though Non-GAAP gross profit was 57% of total revenue. Finance: draft 13-week cash view by Friday.

Olo Inc. (OLO) - Canvas Business Model: Customer Relationships

You're looking at how Olo Inc. keeps its enterprise and emerging enterprise restaurant clients deeply embedded in its platform. This isn't just about selling software; it's about making the platform indispensable through deep integration and continuous feature expansion.

The structure for managing these relationships is clearly tiered. Olo Inc. has dedicated enterprise sales and account management teams focused on its largest customers. This high-touch approach is evidenced by the strong retention figures. For instance, Dollar-based Net Revenue Retention (NRR) stood at 114% as of the second quarter of 2025, indicating existing customers spent significantly more than the prior year, even after accounting for any churn. This expansion revenue is key, supported by an Average Revenue Per Unit (ARPU) reaching approximately $955 in Q2 2025, a 12% year-over-year increase.

The consultative relationship is crucial for platform integration and expansion, which is how Olo Inc. stacks its S-curves, moving from Order to Pay to Engage. The company supports over 750 restaurant brands, and the success of this deep integration is reflected in the Gross Revenue Retention rate, which remained above 98% in Q1 2025. The focus on sales leadership is clear with the hiring of Parrish Chapman as Chief Sales Officer on May 5, 2025.

For broader ecosystem development, Olo Inc. supports self-service tools and APIs for partner and client development teams. The Olo Connect program organizes integration partners into tiers-Developer, Silver, Gold, and Platinum-which helps restaurants select vendors based on qualifications like location count and tenure. Olo Inc. boasts integrations with over 100 technology partners. Furthermore, features like Borderless, the passwordless checkout, have exceeded 19 million total accounts across more than 450 brands as of June 30, 2025, suggesting a successful self-service adoption path for guests.

The deep POS system integration creates high switching costs. The expansion of Olo Pay to include card-present processing means that transaction data from in-store digital payments now lives alongside online order data in the Olo Dashboard. This unification of nearly 100% of guest data across touchpoints makes migrating away from the platform complex. For example, managing and refunding in-store payments originating at the POS can now be done directly from the Olo Dashboard for brands on Olo Pay.

Continuous product innovation is directly tied to customer feedback loops. The 2025 Spring Release included the beta launch of Olo Guest Intelligence, which surfaces key guest metrics like yearly average spend per guest and new guest retention directly in the Dashboard. Thought leaders within the industry are sought out as a think tank to discuss future innovation. The platform enhancements released quarterly are designed to increase value, such as the integration enhancements for Olo Engage with Thanx to improve loyalty offer email delivery, where failed offers are automatically resent.

Here's a look at the key customer growth and retention metrics as of the first half of 2025:

The platform's ability to drive expansion is also seen in module adoption. For example, Ben & Jerry's implemented ordering, rails, and Olo Pay card-not-present in Q1. The company is confident in executing its 2025 plans, including penetrating the more than $100 billion in card-present gross payment volume within its existing base.

Finance: review the impact of the Thoma Bravo acquisition agreement on Q3 2025 account management resources by next Tuesday.

Olo Inc. (OLO) - Canvas Business Model: Channels

You're looking at how Olo Inc. gets its platform and services into the hands of restaurant operators as of late 2025. It's a mix of direct selling to big names and building out a network of tech partners.

Direct sales force targeting multi-location enterprise restaurant brands

The direct sales effort focuses on landing and expanding with large, multi-location chains. This is where the big location counts come from. As of June 30, 2025, Olo Inc. was servicing approximately 89,000 active locations, which was a 9% increase year-over-year from the prior year. The hiring of Parrish Chapman as chief sales officer on May 5, 2025, signals a continued focus on scaling this direct enterprise approach. New deployments in Q1 2025 included multi-module wins with enterprise brands like Ben & Jerry's, and expansion deployments with others like Rubio's and Sonny's BBQ.

The monetization from these direct relationships is clear in the Average Revenue Per Unit (ARPU) metric. As of June 30, 2025, ARPU hit approximately $955, up 12% year-over-year. This shows the direct sales team is successfully upselling multiple modules-Order, Pay, and Engage-to existing customers, evidenced by the 114% Dollar-based Net Revenue Retention (NRR) reported for the same period.

Partner ecosystem for integrated solutions and referrals

Olo Inc. relies heavily on its network to extend reach and functionality. Over 750 restaurant brands trust the platform, supported by a network of more than 400 integration partners. This ecosystem drives both integration and referrals for Olo Inc.'s core platform and specialized services like Olo Pay and Catering+.

The platform's scale is supported by these channel partners:

• Network of more than 400 integration partners.
• Integration with Grubhub for Olo Dispatch.
• Partnership with FreedomPay for card-present Olo Pay functionality.
• Expansion deployments included Olo Pay card-not-present for Catering+ powered channels.

Olo's own website and developer portal for platform access

Direct digital engagement channels are key for customer-facing features. Olo Inc.'s Borderless, the passwordless checkout feature, is a direct-to-guest channel that recently exceeded 19 million total accounts across more than 450 brands as of June 30, 2025. The developer portal supports the ecosystem by providing access to the open SaaS platform for innovation.

Professional services team for implementation and onboarding

While specific professional services revenue isn't broken out, implementation and onboarding are critical to realizing the high NRR. The growth in active locations and multi-module deployments suggests a significant professional services load. The company expected full-year 2025 revenue in the range of $338.5 million to $340.0 million. Successful onboarding is what locks in the recurring platform revenue.

Industry conferences and thought leadership

Thought leadership is channeled through events and product releases that drive awareness and adoption among restaurant executives. The company announced numerous product enhancements during Olo Inc.'s 2025 Spring Release event. The focus of this thought leadership is helping restaurants drive profitable growth by leveraging guest data, which is the core of the Guest Data Flywheel strategy.

Here are the key operational metrics supporting the channel effectiveness as of mid-2025:

Olo Inc. (OLO) - Canvas Business Model: Customer Segments

You're looking at the core of Olo Inc.'s business, which is squarely focused on the B2B side, specifically serving restaurant brands that need to scale their digital operations. The customer base is not just any restaurant; it's heavily weighted toward established, multi-location operators who see digital as mission-critical.

Large, multi-location enterprise restaurant brands (750+ brands)

The foundation of Olo Inc.'s client roster is its established network of brands. As of mid-2025, over 750 restaurant brands trust the platform. This segment, the enterprise-level chains, drives the largest share of revenue and represents the fastest area of growth for Olo Inc.. The company's platform is designed to handle the complexity these large groups bring to the table, evidenced by the platform supporting approximately 88,000 active locations as of March 31, 2025, growing to about 89,000 by June 30, 2025. To be fair, this concentration in the U.S. market is significant, with roughly 94.49% of the 775 order management customers located in the United States as of 2025.

Quick-service, fast-casual, and casual dining chains

Olo Inc.'s technology is built to be adaptable, which lets it serve a wide spectrum of restaurant concepts. You'll find everything from quick-service establishments to casual dining and even fine-dining restaurants using the platform to enhance their off-premise capabilities. The platform's modular nature helps it fit distinct operational models, whether a brand needs basic online ordering or advanced data analytics. For example, Red Lobster, a major seafood company, returned to the Olo Inc. ecosystem after trying an in-house solution, choosing the platform for its enhanced capabilities and cost-effectiveness.

Restaurant operators seeking to consolidate their digital tech stack

A key driver for adoption is the desire to simplify what can be a messy digital technology environment. Operators are looking to consolidate tools, and Olo Inc. shows it's delivering value within its existing base. This is reflected in the Dollar-based Net Revenue Retention (NRR), which stood at 111% at the end of Q1 2025 and improved to 114% by Q2 2025. That NRR figure tells you that existing customers are spending more, often by adopting more modules, which is the definition of tech stack consolidation success. Also, the Average Revenue Per Unit (ARPU) increased 12% year-over-year in both Q1 2025 (at about $911) and Q2 2025 (at about $955).

Brands with high digital order volume and a need for data aggregation

Brands with significant digital volume are prime targets because Olo Inc. processes millions of orders daily, gathering data from every touchpoint into a single source. This data aggregation is crucial for driving profitable traffic. The platform's passwordless checkout feature, Borderless, is a clear indicator of this high-volume segment. As of Q2 2025, Borderless exceeded 19 million total accounts across more than 450 brands. What this estimate hides is the network effect: more than 2 million of those Borderless guests have used the feature at two or more different brands, showing deep integration into guest behavior across multiple concepts.

These core metrics show the value Olo Inc. extracts from its customer base:

Growing regional restaurant groups with scaling needs

The platform attracts growing regional groups that need enterprise-grade tools without the lead time of building them internally. These groups are looking to scale efficiently across new and existing locations. The overall location count growth-adding about 2,000 net new locations in Q1 2025 to reach 88,000, and another 1,000 in Q2 2025 to reach 89,000-demonstrates this ongoing scaling need being met by Olo Inc.. The company's focus on helping brands 'do more with less' resonates with operators facing rising input costs.

You can see the types of brands actively deploying new modules:

• Enterprise brands like Ben & Jerry's deployed Olo Ordering, Rails, and Olo Pay.
• Expansion deployments included First Watch adopting Olo Pay for card-not-present transactions.
• Emerging enterprise groups, like Cupbop Korean BBQ, saw multi-suite new deployments.

If onboarding takes 14+ days, churn risk rises, so speed to value is key for these scaling groups.

Olo Inc. (OLO) - Canvas Business Model: Cost Structure

You're looking at the core expenses that fuel Olo Inc.'s platform and growth engine. Honestly, for a high-growth SaaS company like Olo Inc., the cost structure is where you see the trade-off between scaling the core service and investing heavily in future features.

The Cost of Revenue is a major component, representing the direct costs to deliver the platform services. For the first quarter of 2025, the total cost of revenue was exactly $36.366 million, which is the figure you mentioned. This is the cost associated with keeping the lights on and processing transactions for their existing customer base.

Here's a breakdown of that Cost of Revenue for Q1 2025:

The vast majority of the cost of revenue, nearly 98.0%, is tied directly to the platform operations, which makes sense given their business model. To be fair, this figure benefited from approximately $1 million of one-time cost of revenue adjustments associated with Olo Pay in Q1 2025, which means the normalized cost was slightly higher.

Operating expenses are where Olo Inc. puts its investment dollars for future growth, and these are substantial. For Q1 2025, total operating expenses reached $46.730 million. This spend is concentrated in three main areas:

• Research and development (R&D) expenses were $17.108 million for the quarter.
• General and administrative (G&A) overhead was $15.790 million.
• Sales and marketing (S&M) costs totaled $13.832 million.

Research and development (R&D) expenses are significant, clocking in at $17.108 million in Q1 2025. This spend fuels product innovation like Olo Guest Intelligence and the continued development of modules like Rails. You'd expect this to remain a high priority as they push new features to increase Average Revenue Per Unit (ARPU), which was $911 in Q1 2025.

Sales and marketing (S&M) costs, at $13.832 million in Q1 2025, are the fuel for acquiring and expanding enterprise accounts. This is the cost to drive the growth that resulted in adding approximately 2,000 net new locations sequentially to reach approximately 88,000 active locations as of March 31, 2025.

General and administrative (G&A) overhead, which includes defintely legal and compliance costs necessary for a public company operating in the payments space, was $15.790 million in the first quarter of 2025.

The costs related to transaction processing are embedded within both Cost of Revenue and the overall revenue mix, particularly with Olo Pay. Olo Inc. is targeting $110 million in Olo Pay revenue for the full year 2025 as they ramp up card-present payments. For Olo Dispatch orders, the store floats the Dispatch fees and tips until Olo withdraws them in the monthly invoice, meaning these variable transaction costs flow through the Cost of Revenue line item.

The overall result of this cost structure in Q1 2025 was an operating loss of $2.416 million on a GAAP basis, a significant improvement from the $7.160 million loss in the prior year period. Non-GAAP operating income was $11.5 million, or 14.3% of total revenue.

Finance: draft 13-week cash view by Friday.

Olo Inc. (OLO) - Canvas Business Model: Revenue Streams

You're looking at how Olo Inc. (OLO) converts its platform usage into actual dollars, which is key to understanding its valuation, especially post-acquisition by Thoma Bravo in September 2025. The revenue model is fundamentally a high-retention Software-as-a-Service (SaaS) structure, layered with usage-based fees from its growing payment and delivery modules.

The overall financial expectation for the fiscal year remains strong, built on the momentum seen in the first half of 2025. For the full year 2025, Olo Inc. projects total revenue to fall between $338.5 million and $340.0 million.

The core revenue engine is the platform itself, which saw total revenue increase 22% year-over-year to $85.7 million in the second quarter of 2025. This platform revenue, which includes the core Order suite, grew 21% year-over-year to $84.1 million in Q2 2025. The stickiness of this model is shown by the Dollar-based Net Revenue Retention (NRR) rate, which stood at a robust 114% as of the second quarter of 2025.

Here is a breakdown of the components that make up the revenue:

The platform subscription fees are the foundation. The base subscription for the Order suite is charged on a per-location, per-month basis. With the total active location count growing to approximately 89,000 by the end of Q2 2025, this recurring base is substantial. The ARPU, which captures all modules, reached approximately $955 in Q2 2025, up 12% year-over-year.

The growth in transaction-based revenue is where the upside is concentrated. Olo Pay, which now includes POS-integrated payments for in-store transactions, is a major focus. Management had set a specific revenue target for Olo Pay for the 2025 fiscal year, aiming for $110 million. This is layered on top of the base subscription.

For Olo Dispatch, which acts as a delivery provider broker, the fee structure is flexible, but one example noted is a potential $0.50 transactional fee for the service. The Dispatch fee charged to the customer can also be configured based on subtotal tiers, such as a percentage of the order subtotal for orders over $10.

Professional services and other revenue, which covers implementation and support, is a much smaller part of the overall picture. Based on Q2 2025 results, this segment accounted for about 1.9% of total revenue, with the core Platform Revenue making up the remaining 98.1%. This confirms the business is overwhelmingly driven by recurring software access and transaction volume.

• Platform Revenue (Order, Pay, Engage Suites) growth was 21% year-over-year in Q2 2025.
• Gross Revenue Retention remained above 98% in Q1 2025.
• Total revenue for Q1 2025 was $80.7 million.
• Total revenue for Q2 2025 was $85.7 million.

Finance: review the Q3 2025 revenue run-rate against the full-year guidance midpoint by next Tuesday.