Toast, Inc. Class A (TOST)
NYSE:TOST
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Earnings Data
Report Date
Aug 11, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.32Last Year’s EPS
0.25Same Quarter Last Year
Moderate Buy
Based on 21 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented strong top-line growth, margin expansion and significant product and AI traction (recurring gross profit +27%, ARR +26%, SaaS margin 81%, adjusted EBITDA +35%, clear AI productivity gains and early agent monetization signals). Key challenges include hardware/professional services margin drag (negative 13% of recurring gross profit), an intentional inventory build that pressures near-term free cash flow and a $28M credit-related charge. On balance, the positive operational and financial momentum and raised guidance materially outweigh the manageable near-term headwinds.Company Guidance
Recurring gross profit and ARR growth
Recurring gross profit streams grew 27% year-over-year in Q1 2026 and ARR increased 26%, driven by strong location additions and ARPU growth.
Location expansion and market penetration
Added 7,000 net locations in Q1, ending the quarter with 171,000 live locations (up 22% YoY); continued share gains across core and new TAMs (enterprise, international, retail).
SaaS strength and margin expansion
SaaS ARR grew 27% YoY. Subscription gross profit grew 32% and SaaS gross margin exceeded 80% for the first time at 81% (approximately +300 basis points YoY).
Payments, fintech and GPV momentum
GPV reached $51 billion, up 22% YoY. Payments ARR and fintech gross profit increased 24% YoY. Payments take rate rose to 51 bps (+2 bps YoY); fintech net take rate was 61 bps. Non-payment fintech (led by Toast Capital) contributed $51 million of gross profit and ~10 bps to take rate.
Profitability and cash generation
Adjusted EBITDA grew 35% to $179 million (34% margin). GAAP operating income improved materially to $110 million (21% operating margin) and GAAP EPS more than doubled to $0.20. Free cash flow was $115 million (noting Q1 seasonality).
Product and AI traction: Toast IQ and Toast IQ Grow
Toast IQ reached ~40,000 weekly active locations. Pilot of Toast IQ Grow (marketing agent) delivered average 8% increase in sales vs similar Toast restaurants; standout customer (Sahara Bistro) reported >30% sales lift vs prior 4 weeks and ~1/3 of March sales attributable to Toast marketing tools.
AI-driven productivity gains
Engineering coding velocity up over 60% YoY, enabling faster launches (marketing agent shipped ~3 months early). AI resolves about 40% of support interactions, driving efficiency and enabling reinvestment.
Product & TAM expansion wins
New product launches and vertical wins: Drive‑Thru launch (opening 140,000 locations), enterprise wins (e.g., Hungry Howie's, Papa Murphy's), Alinea Group went live, international expansion (Toast Go 3 handheld) and growth into grocery/retail (100+ grocery locations, >$5M in sales).
Strong monetization progress and raised guidance
Total monetization (recurring gross profit as % of GPV) crossed 1% for the first time at 103 bps (+5 bps YoY). Company raised full-year guidance: recurring gross profit growth now expected 21–23% and adjusted EBITDA $790–$810 million; Q2 subscription + fintech gross profit growth guided 22–24% YoY.
Capital allocation and share repurchase
Repurchased ~14 million shares for nearly $400 million year-to-date; ~$200 million remaining on authorization, indicating opportunistic use of capital and reduced diluted share count supporting EPS growth.
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 |
|---|---|---|---|
May 07, 2026 | $29.38 | $25.05 | -14.74% |
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% |
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. Class A (TOST) report earnings?
Toast, Inc. Class A (TOST) is schdueled to report earning on Aug 11, 2026, After Close (Confirmed).
What is Toast, Inc. Class A (TOST) earnings time?
Toast, Inc. Class A (TOST) earnings time is at Aug 11, 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 (Q2) is 0.32.
