Toast, Inc. Earnings Recaps
Q1 2026
May 8, 2026
Shares fell 11.5% following the quarter, reflecting investor disappointment likely driven by cautious outlook elements and possible margin pressures despite reported revenue growth and AI-related initiatives.
Key takeaways
- Recurring gross profit streams grew 27%, indicating ongoing top-line momentum in core subscription and fintech services.
- GAAP operating income margins expanded to 21%, though the market reaction suggests underlying margin concerns or sustainability doubts.
- Added 7,000 net locations, marking continued customer expansion beyond local restaurants to enterprise chains and international markets.
- Heavy emphasis on AI investments and the launch of Toast IQ Grow marketing agent to enhance customer outcomes, yet skepticism remains on near-term impact and execution risks.
- Market reaction implies investors were underwhelmed by forward guidance or cautious commentary, overshadowing operational progress announced on the call.
Q3 2025
Nov 5, 2025
Toast delivered a robust third quarter with 34% revenue growth and surpassed $2 billion in annual recurring revenue (ARR) for the first time, positioning the company for sustained expansion in the restaurant technology sector.
Key takeaways
- Achieved 34% year-over-year revenue growth and 35% gross margins amid continued strong performance in net location adds.
- Secured major partnerships with brands like Nordstrom and TGI Fridays, emphasizing Toast’s growing influence in various restaurant segments.
- International SaaS ARPU increased by 20% year-over-year, reflecting successful market expansion and competitive platform offerings.
- Expanded partnerships, including a collaboration with Uber, to enhance off-premise sales capabilities for restaurant clients.