TOST · Toast, Inc.

Toast delivered a strong first quarter in 2026, with revenue growing 22% year-over-year to $1.63 billion, driven by a 26% increase in ARR to $2.2 billion and a 22% increase in GPV to $51.3 billion. The company added approximately 7,000 net new locations, bringing total locations to 171,000. Gross profit rose 29% to $447 million, with subscription services and financial technology solutions gross profit up 32% to $520 million (non-GAAP: +27% to $529 million). Operating income more than doubled to $110 million, reflecting a 21% operating margin, while net income surged to $126 million from $56 million in the prior year. Adjusted EBITDA grew 35% to $179 million, and free cash flow improved to $115 million from $69 million. Management highlighted strong momentum across core and new markets, with AI-driven product launches such as Toast IQ Grow and Toast Drive-Thru. The company raised its full-year 2026 Adjusted EBITDA guidance to $790-$810 million (from $775-$795 million) and provided Q2 2026 guidance for non-GAAP subscription and fintech gross profit of $565-$575 million and Adjusted EBITDA of $185-$195 million. Additionally, Toast repurchased 14 million shares for $378 million year-to-date through May 6, signaling confidence in its financial position.