Toast Delivers Robust Q2 2026 Results and Lifts Full-Year Forecast
TOST sits 52% above its 52-week low of $22.26.
Summary
Toast posted Q2 revenue of $1.91B and net income of $154M, then raised full-year guidance on the back of record location growth and expanding margins.
Key Events · Earnings and Guidance · TOST
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Q2 Revenue and Earnings Beat
Revenue of $1.91B exceeded the $1.87B consensus; net income more than doubled to $154M from $80M a year ago.
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Record Location Growth
Approximately 9,500 net new locations were added in Q2, bringing total locations to ~180,000 — a 22% year-over-year increase.
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ARR Surges 25% to $2.4B
Annualized recurring run-rate reached $2.4 billion, driven by 23% growth in payments ARR and 27% growth in subscription ARR.
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Full-Year Guidance Raised
Non-GAAP subscription and fintech gross profit is now expected at $2.325B-$2.355B (23-25% growth), up from prior 21-23%; Adjusted EBITDA raised to $805M-$825M.
Analysis · TOST · Technology
A standout quarter saw Toast beat revenue estimates and more than double net income year-over-year. The addition of a record 9,500 net new locations propelled ARR to $2.4 billion — a 25% surge. Management raised full-year guidance for both recurring gross profit and Adjusted EBITDA, signaling confidence in sustained momentum. An aggressive share buyback — $486 million year-to-date — underscores conviction in the stock's value. This report reinforces Toast's position as a high-growth platform leader in restaurant and retail technology.
At the time of this filing, TOST was trading at $33.75 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 filing was assessed with positive market sentiment and an importance score of 8 out of 10.