Toast Q2 Revenue Beats, Raises Full-Year Outlook on Record Customer Adds and AI Adoption
TOST sits 50% above its 52-week low of $22.26.
Summary
Toast delivered a strong Q2, with revenue of $1.91B beating the $1.87B consensus and net income more than doubling year-over-year to $154M. The company added a record 9,500 net new locations, driving recurring revenue growth, and secured enterprise deals with BWH Hotels and TGI Fridays. Rapid adoption of the AI-powered Toast IQ Grow product contributed to the outperformance. Management raised full-year 2026 guidance: non-GAAP gross profit growth is now seen at 23%-25%, up from 21%-23%, and adjusted EBITDA is lifted to $805M-$825M from $790M-$810M. The company also repurchased 19M shares for $486M year-to-date, signaling confidence in the business. This follows a strong Q1 and a $500M buyback boost announced in February, reinforcing a pattern of accelerating execution and capital return.
Updates
· SEC 10-Q — The 10-Q discloses an FTC probe and shows $100 million remaining under the share repurchase authorization as of June 30, 2026.
At the time of this announcement, TOST was trading at $33.42 on NYSE in the Technology sector, with a market capitalization of approximately $19.6B. The 52-week trading range was $22.26 to $49.66. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.