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Toast Inc (MX:TOST)
:TOST
Mexico Market
EarningsQ2 2026 Earnings Report

Toast Inc (TOST) Q2 2026 Earnings Report

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MX:TOST Q2 2026 EPS Results

Actual EPS$6.54
Consensus EPS$5.85
Beat/MissBeat by +$0.69
One Year Ago EPS$4.52

MX:TOST Q2 2026 Revenue Results

Actual Revenue$34.65B
Expected Revenue$34.01B
Beat/MissBeat by +$637.30M
YoY Revenue Growth+23.10%

Earnings Announcement Details

QuarterQ2 2026
Date08/04/2026
TimeAfter Close
Conference CallTuesday, August 4, 2026
MX:TOST Upcoming Earnings
Toast Inc's next earnings date is estimated for November 10, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:TOST Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

No slide deck is available for this earnings event.

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Aug 04, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call emphasized broad top-line growth, margin expansion and strong product and go-to-market momentum (record location adds, high ARR and recurring gross profit growth, GPV growth, robust adjusted EBITDA improvement, and rapid early traction for AI-driven product Toast IQ Grow). Primary headwinds are hardware/memory-cost pressure, higher near-term operating investment and strategic inventory build impacting free cash flow. Management presented clear mitigation plans for hardware costs, raised full-year guidance for recurring gross profit and adjusted EBITDA, and signaled confidence in longer-term margin upside driven by core leverage and AI-driven efficiency.
Company Guidance
Guidance: For Q3 Toast expects total subscription and fintech gross profit to grow 22–24% year‑over‑year and adjusted EBITDA of $210–220M; it raised full‑year 2026 guidance to recurring gross profit growth of 23–25% and adjusted EBITDA of $805–825M. Management framed that outlook on strong Q2 results (ARR +25%, recurring gross profit streams +28%, adjusted EBITDA $221M (37% margin), GAAP operating income $152M (26% margin), recurring gross profit growth + operating margin = 57% “Rule of 50”), record net adds of ~9,500 locations (total ~180K, +22% YoY), GPV $61B (+22%) with a 98 bps take rate, SaaS ARR +27%, subscription gross profit +32%, payments ARR +23%, fintech gross profit +26%, and a fintech net take of 59 bps (payments 50 bps); they expect free cash flow conversion to improve in H2, are reinvesting a ~$10M tariff refund into growth, and see a path to 40%+ long‑term adjusted EBITDA margins.
Strong Recurring Gross Profit Growth
Recurring gross profit streams grew ~28% year-over-year in Q2, driving top-line strength and forming the basis for raised full-year recurring gross profit guidance of 23%–25%.
Record Net Location Adds and Scale
Company added a record 9,500 net new locations in Q2 (1,000 above prior record), bringing total locations to ~180,000, up 22% year-over-year.
Robust ARR and SaaS Momentum
ARR grew 25% year-over-year. SaaS ARR rose 27%, subscription gross profit increased 32%, and SaaS gross margins expanded ~240 basis points year-over-year.
Healthy Payments and Fintech Performance
GPV was $61 billion, up 22% year-over-year. Payments ARR grew 23% and fintech gross profit rose 26%. Fintech net take rate was 59 basis points; payments take rate was 50 basis points; total take rate (recurring gross profit / GPV) was 98 basis points, up 5 basis points year-over-year.
Profitability and Cash Generation Progress
Adjusted EBITDA grew to $221 million (up 38% year-over-year) with adjusted EBITDA margin of 37% (up ~240 bps). GAAP operating income was $152 million (26% margin) and GAAP EPS was $0.26—both nearly doubled year-over-year. Free cash flow was $130 million in Q2.
Product Momentum: Toast IQ Grow & AI Strategy
Toast IQ Grow is the fastest-growing product to date and is on track to be the fastest product to $10 million ARR. Early customer case: one restaurant cut agency spend by 70% and generated >$100,000 in marketing-attributed sales in under two months. Management is expanding AI Agentic product roadmap to target marketing, payroll, scheduling, bookkeeping, inventory and other services.
Market Expansion and Key Wins
Progress across new TAMs: enterprise endorsement from Best Western, expanded TGI Fridays relationship in the U.K., first gas stations processing fuel payments, and doubled location count in sports & entertainment over the past year. Management expects new TAM ARR to be ~ $200 million this year and to scale faster than core at same stage.
Capital Allocation and Share Repurchases
Year-to-date share repurchases: ~19 million shares for $486 million (≈$100 million remaining authorization). Management emphasizes disciplined capital allocation and reinvestment of one-time tariff refund into growth initiatives.

MX:TOST Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 10, 2026
2026 (Q3)
6.68 / -
4.813―
2026 (Q2)
5.85 / 6.54
4.52244.58% (+2.02)
2026 (Q1)
4.96 / 5.14
3.6540.80% (+1.49)
2025 (Q4)
4.34 / 4.58
3.26940.00% (+1.31)
2025 (Q3)
4.36 / 4.81
3.17851.43% (+1.63)
2025 (Q2)
4.09 / 4.52
2.56176.60% (+1.96)
2025 (Q1)
3.27 / 3.65
0.527593.10% (+3.12)
2024 (Q4)
3.07 / 3.27
0.872275.00% (+2.40)
2024 (Q3)
2.63 / 3.18
0.835280.43% (+2.34)
2024 (Q2)
1.94 / 2.56
0.436487.50% (+2.12)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed