Toast Q2 Revenue Reaches $1.91B, Net Income Doubles to $154M, but FTC Probe Looms
TOST sits 50% above its 52-week low of $22.26.
Summary
Toast posted Q2 revenue of $1.91B and net income of $154M, raised full-year guidance, and repurchased $486M in stock. An FTC draft complaint adds a new legal overhang.
Key Events · Earnings and Guidance · TOST
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Q2 Revenue and Earnings Surge
Driven by a 22% increase in locations to roughly 180,000, revenue climbed 23% to $1.91B, while net income nearly doubled to $154M, or $0.26 diluted EPS.
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Aggressive Share Repurchases
In the first half of 2026, $486M of Class A common stock was repurchased—$159M of that in Q2—leaving $100M remaining under the expanded $750M authorization.
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FTC Investigation Emerges
A draft complaint and proposed settlement order arrived from the FTC in June 2026, targeting the marketing and operation of its restaurant systems. Toast disputes the claims and is prepared to litigate.
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Balance Sheet and Liquidity
Cash and marketable securities stood at $1.71B, with no borrowings on the $347M credit facility. Inventory swelled to $217M, partly reflecting tariff-related stockpiling.
Analysis · TOST · Technology
A 23% revenue jump and near doubling of net income underscore a powerful quarter for Toast, fueled by 22% growth in locations and payment volume. Confidence shines through in the $486M of stock repurchased during the first half. Yet a new FTC investigation into its business practices casts a shadow, introducing regulatory uncertainty that could materially affect operations.
At the time of this filing, TOST was trading at $33.29 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.