Companies /Technology

Toast Inc - Class A

NYSE: TOST Software - Infrastructure
$35.49
▼ $1.49 (−4.02%) today
Markets open · 1:33pm ET

Q2 2026 Earnings

Reported Aug 4, 2026, 4:12pm ET · SEC source
$0.26
Miss −18.50%
EPS · est. $0.32 GAAP
$1.9B
Beat +1.88%
Revenue · est. $1.9B
6 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−4%0+4%Aug 4Aug 5report 4:12pm ETearnings−0.2%+4.0%
−4%0+4%Aug 4Aug 5earnings−0.2%+4.0%
TOST +4.0%S&P 500 −0.2%
−4%0+4%Aug 4Aug 5report 4:12pm ETearnings−1.1%+4.0%
−4%0+4%Aug 4Aug 5earnings−1.1%+4.0%
TOST +4.0%NASDAQ −1.1%
−4%0+4%+8%Aug 3Aug 12report 4:12pm ETearnings−0.0%+1.6%
−4%0+4%+8%Aug 3Aug 12earnings−0.0%+1.6%
TOST +1.6%S&P 500 −0.0%
−4%0+4%+8%Aug 3Aug 12report 4:12pm ETearnings+0.0%+1.6%
−4%0+4%+8%Aug 3Aug 12earnings+0.0%+1.6%
TOST +1.6%NASDAQ +0.0%
+2.93%
Day of report
−0.23%
Next session
−2.13%
One week

Did TOST Beat Earnings? Q2 2026 Results

Toast, Inc. delivered a mixed second quarter for fiscal 2026, posting revenue of $1.91 billion, up 23.1% year over year and ahead of the $1.87 billion consensus estimate by 1.88%, while GAAP diluted EPS of $0.26 fell short of the $0.32 analyst consensus by 18.50%. The revenue beat was fueled by a 22% surge in Gross Payment Volume to $60.70 billion and a 22% expansion in total locations to roughly 180,000, with the company adding approximately 9,500 net new locations in the quarter. GAAP operating income nearly doubled to $152 million from $80 million a year ago, and Adjusted EBITDA climbed to $221 million, though management flagged that figure included a one-time $10 million tariff refund that the company intends to reinvest. Annualized Recurring Run-Rate reached $2.41 billion, up 25% year over year. Options markets had anticipated an 11% swing in the stock around the report. Looking ahead, Toast raised its full-year 2026 Adjusted EBITDA guidance to $805 million to $825 million and lifted its non-GAAP recurring gross profit outlook to $2.33 billion to $2.35 billion, reflecting continued confidence in its restaurant technology platform.

Key Takeaways
  • Record approximately 9,500 net new locations added in Q2
  • 22% year-over-year growth in total locations to approximately 180,000
  • 22% year-over-year growth in Gross Payment Volume to $60.7 billion
  • ARR grew 25% year over year to $2.4 billion
  • Recurring gross profit streams (Non-GAAP) grew 28% year over year
  • GAAP operating income margins expanded to 26%

“The first half of 2026 reflects the strength we have across the business. In Q2, recurring gross profit streams grew 28%, GAAP Operating Income margins expanded to 26%, and we added a record 9,500 net locations.”

Toast CEO, on the earnings call

Forward Guidance & Outlook

For Q3 2026, Toast expects Non-GAAP subscription services and financial technology solutions gross profit of $615 million to $625 million (22-24% growth vs. Q3 2025) and Adjusted EBITDA of $210 million to $220 million. For full year 2026, Toast raised guidance: Non-GAAP subscription services and fintech gross profit of $2,325 million to $2,355 million (23-25% growth, up from 21-23%), and Adjusted EBITDA of $805 million to $825 million (up from $790 million to $810 million). The full-year outlook reflects the strategic decision to reinvest the ~$10 million tariff refund received in Q2.

TOST YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$600.0M$1.2B$1.8B$1.5B$1.9BRevenue$392.0M$516.0MGross Profit$80.0M$152.0MOperating Income$80.0M$154.0MNet Income
$0$600.0M$1.2B$1.8BRevenueGross ProfitOperating IncomeNet Income

TOST Revenue by Segment

Financial Technology Solutions$1.6B+23.0%
Subscription Services$290.0M+28.0%
Hardware and Professional Services$48.0M+2.1%

Figures from SEC filings and company reports. Not investment advice.