Results
Added approximately 9,500 net new Locations in second quarter
6Annualized recurring run-rate (ARR) grew 25% to $2.4 billion as of June 30, 2026
Net income was $154 million and Adjusted EBITDA 1 was $221 million in second quarter
Capital return
Repurchase d 19 million shares for $486 million year-to-date through June 30, 2026
Management commentary
“The first half of 2026 reflects the strength we have across the business.
1In Q2, recurring gross profit streams 2 grew 28%, GAAP Operating Income margins expanded to 26%, and we added a record 9,500 net locations," said Toast CEO Aman Narang.
"We welcomed a breadth of new customers this quarter, from enterprise hospitality partners like BWH ® Hotels, parent company to Best Western, to well-loved bubble tea chain Kung Fu Tea, to an expanded TGI Fridays partnership in the UK.
Toast IQ Grow is the fastest-growing new offering we've ever launched, and it's a clear signal of how we can use AI to transform what Toast can do for customers.
We have incredible momentum across the business, and I have never been more confident in the long term opportunity.”
Results
Financial Highlights for the Second Quarter of 2026
5ARR increased 25% year over year to $2.4 billion as of June 30, 2026.
Total Locations increased 22% year over year to approximately 180,000.
Gross Payment Volume (GPV) increased 22% year over year to $60.7 billion.
Subscription services and financial technology solutions gross profit grew 31% year over year to $585 million.
Non-GAAP subscription services and financial technology solutions gross profit grew 28% year over year to $595 million.
Operating income was $152 million in Q2 2026 compared to $80 million in Q2 2025.
7Net income was $154 million in Q2 2026 compared to $80 million in Q2 2025.
4Adjusted EBITDA was $221 million in Q2 2026, inclusive of a one-time benefit of approximately $10 million from tariff refunds, compared to $161 million in Q2 2025.
8Diluted earnings per share was $0.26 in Q2 2026 compared to $0.13 in Q2 2025.
Net cash provided by operating activities was $144 million and Free Cash Flow was $130 million in Q2 2026.
These compared to net cash provided by operating activities of $223 million and Free Cash Flow of $208 million in Q2 2025.
Outlook
Outlook 3
For the third quarter ending September 30, 2026, Toast expects to report:
Non-GAAP subscription services and financial technology solutions gross profit in the range of $615 million to $625 million (22-24% growth compared to Q3 2025).
Adjusted EBITDA in the range of $210 million to $220 million.
Results
1 Q2 2026 adjusted EBITDA included a one-time benefit of approximately $10 million related to tariff refunds.
Outlook
For the full year ending December 31, 2026, Toast expects to report:
3Non-GAAP subscription services and financial technology solutions gross profit in the range of $2,325 million to $2,355 million (23%-25% growth compared to 2025, up from 21-23% growth).Guidance raised
2Adjusted EBITDA in the range of $805 million to $825 million (up from $790 million to $810 million).Guidance raised
This outlook reflects our strategic decision to re-invest the $10 million tariff refund received in Q2.
Recent Business Highlights
Corporate events
BWH ® Hotels, the parent company of Best Western ® Hotels & Resorts, WorldHotels™, and SureStay ® Hotels, has endorsed Toast as a point-of-sale (POS) solution available to its thousands of properties across the United States and Canada.
This partnership provides these properties with access to Toast’s robust platform, including Toast Tables, Catering & Events, mobile ordering and handheld devices to help modernize operations and enhance the guest experience.
Toast expanded its relationship with TGI Fridays, and rolled out the Toast platform in the United Kingdom.
UK and US restaurants are leveraging Toast's Multi-Location Management, Mobile Order & Pay, Kitchen Display Systems (KDS), Toast Go ® handhelds and APIs.
TGI Fridays was impressed by how quickly their teams adapted to the Toast system in their initial UK pilot locations and chose to accelerate the rollout.
Toast recently launched "Toast Lab," a new initiative to collaborate with a Greater Boston restaurant operator to open a new restaurant location and co-develop, test, and refine Toast's technology.
As part of this hands-on partnership, the selected operator will receive strategic capital, executive mentorship, and early access to Toast products.
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