Toast Reports Strong Q1 2026 Results, Doubles Net Income, and Raises Full-Year Guidance

summarizeSummary

Toast, Inc. announced strong first-quarter 2026 financial results, including a significant increase in net income and Adjusted EBITDA, and raised its full-year guidance, alongside substantial share repurchases.

check_boxKey Events

• Strong Q1 2026 Financial Performance

  Net income for Q1 2026 was $126 million, more than double the $56 million reported in Q1 2025. Adjusted EBITDA increased to $179 million from $133 million in the prior year quarter. Diluted EPS rose to $0.20 from $0.09.

• Raised Full-Year 2026 Guidance

  Toast increased its full-year 2026 outlook for non-GAAP subscription services and financial technology solutions gross profit to a range of $2,290 million to $2,320 million (21%-23% growth), up from the previous 20-22% growth. Adjusted EBITDA guidance was also raised to $790 million to $810 million, up from $775 million to $795 million.

• Significant Share Repurchases

  The company repurchased 14 million shares for $378 million year-to-date through May 6, 2026, demonstrating active capital management and commitment to shareholder returns.

• Robust Growth in Key Metrics

  Annualized Recurring Run-Rate (ARR) grew 26% year-over-year to $2.2 billion, and total locations increased 22% year-over-year to approximately 171,000, adding about 7,000 net new locations in Q1.

auto_awesomeAnalysis

Toast, Inc. delivered robust first-quarter results, significantly exceeding prior-year performance with net income more than doubling and Adjusted EBITDA showing strong growth. The company's decision to raise its full-year guidance for both non-GAAP subscription services and financial technology solutions gross profit and Adjusted EBITDA signals strong operational momentum and management confidence in continued growth. The ongoing execution of its share repurchase program, with $378 million spent year-to-date, further demonstrates a commitment to returning value to shareholders. These positive financial and operational updates, coupled with strategic product launches and partnerships, reinforce a strong growth trajectory for the company.