Restaurant tech firm Toast reports strong recurring revenue and profitability metrics, raising full-year profit growth outlook.
Toast Inc. (NYSE:TOST) reported a 26% year-over-year increase in annualized recurring run-rate to $2.2 billion in Q1 2026. The company also saw total locations grow 22% to 171,000 and gross payment volume rise 22% to $51.3 billion.
Net income reached $126 million, while adjusted EBITDA hit $179 million and free cash flow totaled $115 million. Toast ended the quarter with $1.10 billion in cash and equivalents, matching its total liabilities.
The company repurchased 14 million shares for $378 million year-to-date and raised its full-year 2026 non-GAAP gross profit growth outlook to 21%-23% for subscription and financial technology solutions.