Toast (NYSE:TOST) Announces Quarterly Earnings Results

Toast (NYSE:TOST) announced its quarterly earnings results on Tuesday. The company reported $0.26 earnings per share for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.06), FiscalAI reports. The company had revenue of $1.91 billion during the quarter, compared to the consensus estimate of $1.87 billion. Toast had a net margin of 6.39% and a return on equity of 20.86%. The business’s quarterly revenue was up 23.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.13 EPS.

Here are the key takeaways from Toast’s conference call:

• Q2 exceeded expectations, with recurring gross profit streams up 28%, GAAP operating margin reaching 26%, adjusted EBITDA increasing 38% to $221 million, and record net additions of 9,500 locations.
• Toast raised its full-year 2026 outlook to 23%–25% growth in recurring gross profit and adjusted EBITDA of $805 million–$825 million, while maintaining a strategy of sustained growth and gradual margin expansion.
• The company reported strong early traction for Toast IQ Grow, its AI marketing agent, which is on track to reach $10 million in ARR faster than any prior product and could expand monetization into payroll, scheduling, bookkeeping, tax, and other services.
• Toast is gaining momentum beyond its core restaurant market across enterprise, international, and retail, with new customers including Best Western and TGI Fridays U.K.; ARR in these new markets is expected to nearly double to $200 million this year.
• Free cash flow declined year over year to $130 million due to higher hardware inventory, while memory-cost pressures are expected to have a greater P&L impact in 2027 despite supply-chain mitigation efforts and a roughly $10 million tariff refund in Q2.

Toast Price Performance

NYSE:TOST traded up $1.60 on Wednesday, hitting $35.41. 6,390,663 shares of the company’s stock were exchanged, compared to its average volume of 11,754,141. The firm has a 50-day moving average price of $27.87 and a 200-day moving average price of $27.83. Toast has a 52 week low of $22.26 and a 52 week high of $46.81. The company has a market cap of $18.27 billion, a P/E ratio of 54.48 and a beta of 1.72.

Key Headlines Impacting Toast

Here are the key news stories impacting Toast this week:

• Positive Sentiment: Analysts raised targets and ratings. BMO Capital Markets increased its price target from $35 to $40 and upgraded Toast to “outperform.” Piper Sandler raised its target from $32 to $39 while maintaining an “overweight” rating, and Needham lifted its target from $35 to $45 with a new “buy” rating. The new targets imply additional upside from recent trading levels. Analyst price-target changes
• Positive Sentiment: Revenue and operating momentum remained strong. Toast reported second-quarter revenue of $1.91 billion, topping the $1.87 billion consensus estimate and increasing 23.1% year over year. Management also reported record net additions of 9,500 locations, recurring gross profit growth of 28% and expanded GAAP operating-income margins. Toast Announces Second Quarter 2026 Financial Results
• Neutral Sentiment: Investors are weighing differing earnings figures. Reports cited quarterly earnings above the year-ago result, with Zacks listing $0.34 per share versus a $0.32 estimate, while other coverage reported $0.26 per share and a miss against consensus. The discrepancy may reflect differences in earnings definitions, but profitability remains a key focus for investors. Toast Q2 earnings report
• Negative Sentiment: An insider reduced exposure. Chief Revenue Officer Jonathan Vassil sold 14,280 shares valued at approximately $470,000. Because the transaction occurred under a pre-arranged Rule 10b5-1 plan, it is a relatively limited bearish signal. SEC insider-trading filing

Insider Buying and Selling

In related news, CEO Aman Narang sold 14,365 shares of the stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $28.85, for a total transaction of $414,430.25. Following the completion of the transaction, the chief executive officer directly owned 70,451 shares of the company’s stock, valued at approximately $2,032,511.35. This represents a 16.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Jonathan Vassil sold 14,280 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $32.89, for a total value of $469,669.20. Following the completion of the transaction, the executive owned 69,966 shares of the company’s stock, valued at approximately $2,301,181.74. This represents a 16.95% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 173,545 shares of company stock worth $4,748,501 over the last three months. Company insiders own 10.03% of the company’s stock.

Institutional Investors Weigh In On Toast

A number of institutional investors and hedge funds have recently modified their holdings of the company. Strive Financial Group LLC bought a new stake in Toast in the fourth quarter valued at approximately $29,000. Mercer Global Advisors Inc. ADV raised its stake in Toast by 39.2% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 181,327 shares of the company’s stock valued at $6,268,000 after acquiring an additional 51,079 shares during the period. Arohi Asset Management PTE Ltd. bought a new position in Toast during the fourth quarter worth $8,576,000. Vident Advisory LLC increased its holdings in shares of Toast by 15.0% in the fourth quarter. Vident Advisory LLC now owns 68,679 shares of the company’s stock valued at $2,439,000 after purchasing an additional 8,975 shares during the last quarter. Finally, Beacon Pointe Advisors LLC increased its holdings in shares of Toast by 51.9% in the fourth quarter. Beacon Pointe Advisors LLC now owns 26,353 shares of the company’s stock valued at $936,000 after purchasing an additional 9,004 shares during the last quarter. 82.91% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

TOST has been the topic of a number of research analyst reports. Piper Sandler raised their price objective on shares of Toast from $32.00 to $39.00 and gave the stock an “overweight” rating in a report on Wednesday. Wells Fargo & Company reaffirmed an “overweight” rating and issued a $40.00 target price on shares of Toast in a research note on Wednesday. Mizuho lowered their target price on Toast from $45.00 to $38.00 and set an “outperform” rating for the company in a report on Tuesday, May 12th. BMO Capital Markets lifted their price target on Toast from $35.00 to $40.00 and gave the company an “outperform” rating in a research note on Wednesday. Finally, Jefferies Financial Group set a $40.00 price objective on Toast in a research report on Wednesday. Eighteen equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $38.88.

Toast Company Profile

Toast, Inc (NYSE: TOST) is a technology company that builds a cloud-based platform for restaurants and other foodservice businesses. Headquartered in Boston, Massachusetts, Toast offers integrated point-of-sale (POS) systems and a suite of software and hardware designed to streamline front-of-house and back-of-house operations. The company went public in 2021 and has positioned itself as a vertically integrated provider for the restaurant industry.

Toast’s product portfolio includes touchscreen POS terminals and handheld order-and-pay devices, kitchen display systems, and peripherals tailored for high-volume foodservice environments.