Toast (TOST) investor relations material

Executive summary

• Q1 2026 delivered strong results with recurring gross profit streams up 27%, ARR up 26% to $2.2 billion, and GAAP operating income margin expanding to 21%.

• 7,000 net locations were added, bringing the total to 171,000 live locations, up 22% year-over-year.

• Net income reached $126 million, Adjusted EBITDA was $179 million, and diluted EPS more than doubled to $0.20.

• Strategic focus on expanding from software to agentic platform, entering new markets, and leveraging AI for productivity.

• Repurchased 14 million shares for nearly $400 million year-to-date.

Financial highlights

• ARR increased 26% year-over-year; recurring gross profit streams rose 27%.

• Adjusted EBITDA reached $179 million (34% margin), up 35% year-over-year.

• GAAP operating income margin crossed 20% for the first time, reaching 21% ($110 million).

• EPS more than doubled to $0.20; free cash flow was $115 million.

• GPV was $51.3 billion, up 22% year-over-year; SaaS ARR grew 27%, SaaS gross margin exceeded 80%.

Outlook and guidance

• Q2 2026 guidance: subscription and Fintech gross profit to grow 22%-24% year-over-year; Adjusted EBITDA of $185M-$195M.

• Full-year 2026 guidance raised: recurring gross profit growth of 21%-23%, Adjusted EBITDA of $790M-$810M.

• Company aims to sustain high growth for the next 5-10 years, with a long-term margin target of 40%+.