Toast (TOST) Earnings Date & Reports

Key Takeaways

• Toast reported third-quarter 2026 revenue of $1.98 billion, up 21.3% year over year and slightly above the roughly $1.97 billion Wall Street consensus.
• Diluted earnings per share (EPS) of $0.29 beat the FactSet consensus of $0.25, while net income rose to $169 million from $105 million a year earlier.
• Annualized recurring run-rate (ARR) climbed 24% to $2.5 billion, and total locations grew 21% to approximately 189,000.
• Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reached $240 million, above the roughly $219 million analysts had projected.
• Toast raised its full-year 2026 adjusted EBITDA outlook but announced that CFO Elena Gomez will step down at the end of the year.
• Shares fell about 6% in after-hours trading despite the headline beat.
• For more detail on Toast's Major News, Today's Price Move, Price Targets, and Forecast, explore these dedicated pages for deeper coverage.
• To discover AI-driven trading ideas and market opportunities, explore Trending AI Robots.

Earnings Context and Why It Matters

Toast has spent the past several years converting rapid top-line growth into consistent profitability, and its quarterly reports have become a key barometer for spending across the restaurant and hospitality sectors. Investors watch Toast's results closely for signs of demand resilience among restaurant operators, growth in payment volume, and the company's ability to expand margins while adding new locations. This quarter's report also carried added significance because it arrived alongside a leadership transition at the top of the finance function, making the accompanying guidance and commentary especially important for gauging the company's trajectory into 2027.

Reported Results

For the third quarter ended September 30, 2026, Toast reported total revenue of $1.98 billion, an increase of 21.3% from $1.63 billion a year earlier. The figure was roughly in line with the analyst consensus of approximately $1.97 billion.

Diluted earnings per share came in at $0.29, exceeding the FactSet consensus of $0.25 and improving from $0.16 in the prior-year period. Net income rose to $169 million from $105 million a year ago, while operating income increased to $165 million from $84 million. Adjusted EBITDA climbed to $240 million from $176 million, topping the roughly $219 million analysts had expected.

Key operating metrics showed continued expansion. ARR grew 24% year over year to $2.5 billion as of September 30, 2026. Total locations increased 21% to about 189,000, with the company adding roughly 8,500 net new locations during the quarter. Gross payment volume (GPV) rose 20% to $61.8 billion, slightly below the roughly $62.6 billion FactSet estimate. Free cash flow was $181 million, up from $153 million a year earlier.

AI Screener

Tickeron's AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener is designed to surface trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening, making it a practical resource for investors tracking names like Toast across the restaurant and fintech landscape. Explore the AI Screener to build watchlists and identify signals tailored to your strategy.

Market Reaction and Investor Sentiment

Toast's stock declined about 6% in after-hours trading following the release, even though the company beat on earnings per share and adjusted EBITDA. The muted reaction likely reflected investor caution around the announced leadership change, with CFO Elena Gomez set to step down at the end of December 2026 and Senior Vice President of Finance Michael Senno taking over effective January 1, 2027. The slight shortfall in gross payment volume relative to estimates may also have weighed on sentiment, underscoring how closely the market tracks payment activity as a signal of restaurant-industry health.

Forward Outlook and Key Factors to Monitor

Looking ahead, investors should monitor how Toast executes its updated guidance. For the fourth quarter ending December 31, 2026, the company expects non-GAAP (non-Generally Accepted Accounting Principles) subscription services and financial technology solutions gross profit of $610 million to $620 million, along with adjusted EBITDA of $200 million to $210 million. For the full year, management raised its adjusted EBITDA outlook to $840 million to $850 million, up from a prior range of $805 million to $825 million.

The CFO transition will be a central focus. Michael Senno, a long-tenured finance executive at Toast, takes over on January 1, 2027, and investors will watch for any strategic shifts or continuity in the company's growth and margin priorities.

Beyond leadership, key factors to track include the pace of net new location additions, growth in gross payment volume, and the ramp of newer products such as the Toast IQ and Toast Fuel offerings. Margin trajectory, cost discipline, and the broader health of restaurant-industry spending will also remain important drivers as the company works to sustain durable, profitable growth.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations