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Toast Inc (TOST)
NYSE:TOST
Earnings Data
Report Date
May 07, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.27Last Year’s EPS
0.2Same Quarter Last Year
Moderate Buy
Based on 22 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlighted strong top-line and recurring gross profit growth, record net location additions, improved margins and robust cash generation, driven by product innovation (notably AI) and expansion into enterprise, international and retail. Key challenges include hardware cost headwinds (memory chips and tariffs), a negative contribution from hardware/professional services to gross profit, early-stage economics in new TAMs, and modest per-location GPV pressure. Management provided confident guidance for continued growth in 2026 while noting near-term hardware cost impacts and continued investments in R&D and go-to-market.Company Guidance
Strong recurring gross profit and ARR growth
Recurring gross profit streams increased 33% for full-year 2025 (28% in Q4). Annual Recurring Revenue (ARR) grew 26%, with ARR above $2.0 billion.
Record net location adds and expanding market share
Added a record ~30,000 net locations in 2025 (ending the year with 164,000 locations). Company now powers ~20% of U.S. SMB and mid-market restaurants, nearly doubling market share over the past three years and expecting higher net adds in 2026.
Improved profitability and cash generation
Adjusted EBITDA of $633 million and free cash flow of $608 million for 2025. GAAP operating income rose to $292 million from $16 million a year earlier. Adjusted EBITDA margin expanded to the mid-30s (management cited ~34%), and Q4 adjusted EBITDA grew 47% to $163 million (32% margin).
SaaS strength and retention
SaaS ARR and subscription revenue each grew 28% YoY. SaaS gross margins expanded 300 basis points YoY to 80% in Q4. SaaS net retention remained healthy at 109% for 2025, and management expects mid-single-digit SaaS ARPU growth on an ARR basis in 2026 (core ARPU growing faster).
Payments / Fintech momentum
Full-year payment volume (GPV) reported at approximately $195 billion. Q4 GPV was $51 billion, up 22% YoY. Payments ARR grew 24%, fintech gross profit grew 25% in Q4. Payments take rate ticked up 2 basis points YoY to 48 bps; fintech net take rate was 58 bps. Non-payment fintech (Toast Capital) contributed $51 million in gross profit (~10 bps).
Rapid product innovation and AI adoption
Released over 500 platform enhancements in 2025 including Toast Go 3 and ToastIQ. More than half of support interactions now start with an AI agent and 70% of those never reach a human. ToastIQ reached over 50% of locations within ~4 months and processed over 8 million queries, driving operational workflows and faster decision-making.
Enterprise, international and retail traction
Signed major enterprise customers (Applebee's, Firehouse Subs, Papa Murphy's) and expanded relationships (MTY Group). Launched Australia (4th international market) and scaled retail go-to-market with wins like La Carniceria. Management said emerging TAMs across retail, international and enterprise doubled ARR in 2025 and pipeline/rollouts have never been bigger.
Disciplined capital allocation
Repurchased ~8 million shares for $235 million since buyback authorization began (3 million shares for $107 million in 2025). Board approved a $500 million increase to repurchase authorization. Management emphasized returning capital opportunistically.
TOST Earnings History
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
TOST Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 12, 2026 | $26.14 | $27.33 | +4.55% |
Nov 04, 2025 | $35.64 | $39.02 | +9.48% |
Aug 05, 2025 | $47.71 | $45.94 | -3.71% |
May 08, 2025 | $36.65 | $40.84 | +11.43% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Toast Inc (TOST) report earnings?
Toast Inc (TOST) is schdueled to report earning on May 07, 2026, After Close (Confirmed).
What is Toast Inc (TOST) earnings time?
Toast Inc (TOST) earnings time is at May 07, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is TOST EPS forecast?
TOST EPS forecast for the fiscal quarter 2026 (Q1) is 0.27.
