Toast builds a cloud platform that connects point-of-sale terminals, payments and business software for restaurants and retailers. Its Toast Go handheld devices let staff take orders and accept payments beside the customer, while kitchen screens route tickets to the people preparing each meal. Operators manage menus, online orders and employee payroll through connected tools that share real-time information across the front counter and back office. The company earns software subscription fees and transaction-based payment fees, and sells hardware and implementation services. Toast was founded in 2011 and is headquartered in Boston, Massachusetts.
Company Size
5,001-10,000
Company Stage
IPO
Headquarters
Boston, Massachusetts
Founded
2011
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Toast shares fell more than 4.5% in midday trading on Wednesday after Block's Square unveiled an AI voice kiosk for restaurants. Square Kiosk pairs a 21.5-inch touchscreen with a conversational voice system that understands a quick-service restaurant's full menu in real time. Customers can place and change orders, ask about ingredients, and request substitutions. It costs $1,999 plus a $99 monthly software fee per device, and requires a Square Plus or Premium subscription. Investors fear added competition for Toast, which makes its own restaurant kiosks. In the second quarter, Toast reported revenue of $1.91 billion, up 23%, and net income of $154 million, up 93%. Its stock is down 17% this year.
Toast reported Q2 revenue of $1.91 billion, up 23%, with net income reaching $154 million. The company's financial technology solutions segment, which includes payments, generated $1.57 billion in revenue, representing 82.2% of total sales. The payments segment contributed roughly $360 million in gross profit. Toast's subscription services segment proved most profitable on a margin basis, delivering $226 million in gross profit from $290 million in revenue. The hardware and professional services segment operated at a loss, posting $48 million in revenue against $116 million in costs. This strategy enables Toast to place devices with customers who then use higher-margin services, anchoring the company's broader business model for the restaurant industry.
Toast reported second quarter results showing broad-based momentum, with revenue of $1.91 billion beating analyst estimates of $1.87 billion. The restaurant technology platform saw adjusted earnings per share of $0.36, surpassing the $0.32 consensus. CEO Aman Narang credited growth to rapid adoption of Toast IQ Grow, the company's AI-driven marketing agent, which contributed to record net location additions. The company reported annual recurring revenue of $2.41 billion, up 24.9% year-on-year. Operating margin improved to 8%, up from 5.2% in the prior year quarter. CFO Elena Gomez attributed margin expansion to cost optimisation efforts and a one-time hardware tariff refund. During the earnings call, analysts focused on the long-term revenue opportunity from new AI modules and drivers of sustainable margin expansion. Management indicated conversion rates for its AI product remain strong and the offering already operates at positive margins.
Toast reported strong second-quarter 2026 results, with recurring gross profit streams growing over 28% and GAAP operating income margins expanding to 26%. The restaurant technology platform added a record 9,500 net locations during the quarter, surpassing its previous high by 1,000. CEO Aman Narang highlighted the company's AI initiatives, noting that Toast IQ Grow, its marketing agent, is the fastest-growing product the company has ever launched. The tool is designed to help restaurant customers drive business outcomes. Narang expressed confidence that the AI opportunity could help scale average revenue per user over time. The company is focusing on integrating AI agents with its software platform to deliver value to restaurant operators whilst expanding its presence in new markets.
Elena Gomez, president and CFO of Toast, sold 17,076 shares of Class A Common Stock for approximately $602,441 on 5 and 6 August, according to an SEC Form 4 filing. The sale was executed under a Rule 10b5-1 trading plan adopted on 12 December 2025, which allows automated, scheduled transactions. The transaction reduced Gomez's direct shareholding by 9% to nearly 168,000 shares, valued at $5.84 million as of 6 August. She maintains approximately 0.03% of the company's outstanding equity. Toast shares closed at $34.72 on 6 August, representing a 24% decline over the preceding 12 months. The cloud-based restaurant technology platform provider has a market capitalisation of $20.1 billion, with trailing twelve-month revenue of $6.8 billion and net income of $486 million.