Toast, Inc. Q3 2026 Earnings Recap

Toast’s shares rose 5.5% after earnings. Recurring gross profit streams grew 27% year over year, while management cited 26% GAAP operating income margin and continued customer additions.

Key Takeaways

• Toast added 8,500 net new locations in Q3 and said it gained share across every customer segment.
• Toast IQ Grow is on track to reach $10 million in ARR by year-end; Morning Mugs reported nearly $100,000 in year-over-year marketing-attributed sales growth after adopting it.
• Restaurants using Scheduling Pro averaged 41% fewer overtime hours per employee. One customer, Madi Group, said labor costs fell from 28% to almost 24% of sales.
• Management is expanding into AI agents for marketing and labor management, with plans to address additional workflows such as inventory and bookkeeping.