Toast Statistics 2026: ARR, GPV, Take Rate and Revenue

Toast statistics for the second quarter of 2026 open with an annualized recurring run-rate of $2.4 billion, up 25% year over year across approximately 180,000 live locations. Gross payment volume reached $60.7 billion in the quarter, a 22% increase on the same period a year earlier. Subscription and financial technology gross profit, the pair Toast treats as its recurring streams, grew 31% to $585 million.

Subscription software wins the location; payments monetize it for as long as the restaurant trades. Underneath the familiar metrics, one balance-sheet line moved that stood at zero six months earlier, as Toast began holding restaurant loans purchased from its bank partner rather than leaving all of them with the originating bank.

Key Takeaways

• Annualized recurring run-rate increased 25% year over year to $2.4 billion as of June 30, 2026.
• Toast added approximately 9,500 net new locations in the second quarter of 2026, which the company called a record.
• The platform processed $215 billion of gross payment volume over the trailing twelve months and served approximately 180,000 locations as of June 30, 2026.
• Financial technology revenue equalled roughly 2.59% of gross payment volume in the second quarter of 2026.
• Loans held for investment stood at $46 million on June 30, 2026, against $0 million at the end of 2025.
• Net income was $154 million and Adjusted EBITDA was $221 million in the quarter compared with $80 million and $161 million a year earlier.
• The company added a record 30,000 net locations in 2025, including approximately 8,000 in the fourth quarter alone.

Editor’s Choice

• First-quarter 2026 ARR of $2.2 billion covered approximately 171,000 locations processing $51.3 billion of volume.
• ARR grew 30% in the third quarter of 2025 to over $2.0 billion, when Toast powered 156,000 locations.
• Locations reached approximately 164,000 at December 31, 2025, up 22%, processing approximately $195 billion of volume over the trailing twelve months.
• Free cash flow fell to $130 million in the second quarter of 2026 from $208 million a year earlier.
• Toast employed approximately 6,500 people worldwide as of December 31, 2025.
• The board authorized buybacks of up to $250 million in February 2024 and added a further $500 million in February 2026.
• Restricted cash held as collateral with the originating bank partner reached $73 million as of June 30, 2026, against $71 million six months earlier.

Toast Statistics at a Glance: The Key Metrics

• The second quarter of 2026 delivered ARR of $2.4 billion, approximately 180,000 total locations, and gross payment volume of $60.7 billion, each growing between 22% and 25% year over year.
• Operating income reached $152 million against $80 million a year earlier, and diluted earnings per share doubled to $0.26 from $0.13.

Source: Toast Form 8-K Exhibit 99.1 filed with the SEC, second quarter 2026

Chief executive Aman Narang framed the quarter this way: In Q2, recurring gross profit streams grew 28%, GAAP Operating Income margins expanded to 26%, and we added a record 9,500 net locations.

• Cash generation moved the other way, with operating cash flow of $144 million and free cash flow of $130 million against $223 million and $208 million, respectively, a year earlier.
• Inventories climbed to 217 from 114 over the six months to June 30, 2026, measured in millions of dollars.

Gross Payment Volume by Quarter

• Gross payment volume was $60.7 billion in the second quarter of 2026, 22% ahead of the equivalent 2025 quarter.
• The first quarter of 2026 produced $51.3 billion, itself 22% ahead of the first quarter of 2025.

• Fourth-quarter 2025 volume was $51.4 billion, up 22% year over year.
• Across the whole of 2025, the platform handled approximately $195 billion in the trailing twelve months to December 31.

Volume barely moved for three straight quarters, then stepped up sharply each spring.

• The first-to-second quarter step was 18.3% in 2026.
• The same step was 18.2% in 2025.

The vertical trade behind Stripe payment data applies here: deeper wallet share, thinner tolerance for one bad industry.

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Recent Developments

• Toast reported second-quarter 2026 results on August 4, 2026, disclosing ARR growth of 25% to $2.4 billion and approximately 9,500 net new locations.
• Toast’s quarterly report on Form 10-Q disclosed $46 million of loans held for investment as of June 30, 2026, a line that stood at $0 million at December 31, 2025.
• BWH Hotels, parent of Best Western Hotels and Resorts, WorldHotels and SureStay Hotels, endorsed Toast as a point-of-sale solution available to its properties across the United States and Canada in the second quarter of 2026.
• Toast expanded its relationship with TGI Fridays in the same quarter and rolled the platform out in the United Kingdom.
• Full-year guidance rose on August 4, 2026, lifting expected non-GAAP subscription and financial technology gross profit growth from a range of 21-23% to a range of 23%-25%.
• Toast announced Toast Lab in August 2026 alongside its second-quarter results, an initiative to open a restaurant with a Greater Boston operator and co-develop technology inside it.

Subscription and Payments ARR Do Not Move on the Same Clock

The subscription half reflects one month of billings; the payments half reflects a full quarter of trading.

• Toast calculates ARR as twelve times the subscription component of monthly recurring run-rate plus four times the trailing-three-month cumulative payments component.

• Payments ARR fell $28 million between September 30 and December 31 of 2025.
• Subscription ARR rose $59 million across the identical window.
• Locations grew 22% year over year across that same fourth quarter, and volume reached $51.4 billion.

That is annualization catching a soft quarter, not a business in retreat.

• By June 30, 2026, the subscription line finished just $11 million ahead of payments.
• Compared with a $75 million lead six months earlier.

The recurring run-rate calculation excludes fees derived from Toast Capital entirely. So the lending business is invisible in the headline metric.

Toast Capital Moved onto the Balance Sheet

• Toast held $46 million of loans for investment as of June 30, 2026, compared with $0 million of such loans at December 31, 2025.
• Toast Capital offers eligible restaurants funding through loans issued by a bank partner and generally repaid through a portion of their daily transactions.

• The company now purchases loans from that bank partner which are not delinquent at acquisition and which it intends and is able to hold until maturity or payoff.
• Those loans are carried at amortized cost, net of an allowance for expected credit losses, with income recognized over the life of each loan using the effective interest method.
• Credit quality is assessed through the aging of unpaid principal and the historical performance of vintage cohorts.

Source: Toast Quarterly Report on Form 10-Q, quarter ended June 30, 2026

• No material delinquent loans sat in the portfolio at June 30, 2026, and the allowance for expected credit losses was immaterial.
• Separately, restricted cash held as collateral with the originating bank reached $73 million, against $71 million at the end of 2025.

Amortized cost, expected credit losses, vintage cohorts: the loans held for investment note reads like a lender’s, not a processor’s.

Key finding: The payments and subscription halves of annualized recurring run-rate are calculated off different windows, one month of billings against a trailing quarter of trading, so the ordering between the two lines swings with the restaurant calendar rather than with the underlying business. Read either half alone and the mix looks like a trend it is not.

Live Locations and Net Adds

• Total locations increased 22% year over year to approximately 180,000 as of June 30, 2026.
• The quarter added approximately 9,500 net new locations.
• Three months earlier, the count stood at approximately 171,000 after roughly 7,000 net adds.

• Toast powered 156,000 locations as of September 30, 2025, after roughly 7,500 net adds in that quarter.
• It closed 2025 at approximately 164,000 locations, having added a record 30,000 across the year, including approximately 8,000 in the fourth quarter.
• Each location now carries roughly $13,383 of annualized recurring run-rate.
• The trailing-twelve-month volume works out at about $1.19 million per location.

Restaurant POS adoption curves usually flatten well before six figures of installs.

Revenue Mix: Subscription, Fintech and Hardware

• Total revenue grew 24% in fiscal 2025, with subscription services up 33% and financial technology solutions up 24%.
• Financial technology revenue consists primarily of transaction-based fees calculated as a percentage of the total transaction amount processed plus a per-transaction fee.

Source: Toast Annual Report on Form 10-K filed with SEC EDGAR, fiscal 2025

• Subscription revenue is billed primarily at a rate per location, varying with the number of software products purchased, the hardware configuration, and employee count at each site.
• Financial technology revenue also carries fees earned from marketing and servicing working capital loans originated by a third-party bank through Toast Capital.

Hardware was the only line to shrink in a record year for installs.

Burying lending inside a fintech line this dominant produces a different risk profile from the Marqeta revenue mix I have tracked.

What Percentage Does Toast Take?

• Toast’s financial technology revenue equalled 2.59% of the volume it processed in the second quarter of 2026, which is the closest thing to a headline take rate the company discloses.
• Toast does not report a blended take rate among its key business metrics, and the fees behind that revenue are structured as a percentage of each transaction amount plus a per-transaction charge.

• The same calculation gives 2.55% for fiscal 2024.
• 2.58% for fiscal 2025.

Four basis points of drift in three years is a remarkably flat line.

Gross revenue is not what Toast keeps. Payments gross profit came to 0.50% of gross payment volume in the second quarter of 2026, which is the number that actually funds the company. Interchange and network costs make headline transaction-based fees a poor guide to economics, a spread visible across card processing rates by provider.

Why it matters: Financial technology revenue has held between 2.55% and 2.59% of processed volume across three fiscal years, which means the growth has come from adding locations and volume rather than from repricing existing merchants. A platform that grows without widening its cut is competing on distribution, not on price, and that is a durable position to hold.

Profitability: Net Income and Adjusted EBITDA

• Net income was $154 million and Adjusted EBITDA was $221 million in the second quarter of 2026, the latter including a one-time benefit of approximately $10 million from tariff refunds.
• Three months earlier, the company reported $126 million of net income and $179 million of Adjusted EBITDA.

• The fourth quarter of 2025 produced $101 million of net income and $163 million of Adjusted EBITDA.
• Its third quarter that year delivered $105 million of net income.
• Toast recorded no restructuring expense in either the second quarter of 2026 or the first half of the year.

Zero restructuring charges answer the layoff question, and the second quarter 2026 results show cash lagging profit.

Hardware Runs at a Loss by Design

• Hardware and professional services gross profit was negative in both the second quarter of 2026 and the same quarter a year earlier, and negative again across each of the two first-half periods.
• Hardware and professional services cost of revenue exceeded the matching revenue by $68 million in the second quarter of 2026 alone.

Source: Toast Form 8-K Exhibit 99.1 filed with the Securities and Exchange Commission, second quarter 2026

• The first-half loss widened by $39 million year over year.

A terminal sold below cost is customer acquisition under another label, as the Square merchant statistics repeat.

Buybacks and Share Count

• Toast repurchased 19 million shares for $486 million year to date through June 30, 2026.
• Shares outstanding fell by 12 million across the first half of 2026, a smaller reduction than the buyback count, because equity plans keep issuing into the same pool.

Source: Toast Form 10-Q for Q2 2026 and Form 10-K for fiscal 2025, 2026

The repurchase program carries no expiration date, does not obligate Toast to acquire any particular amount of Class A common stock, and may be suspended at any time. Whether a buyback beside a new loan book reads as confidence or a thin menu belongs with retail investing data.

What Toast Told Investors to Expect

• For the third quarter ending September 30, 2026, Toast guided to non-GAAP subscription and financial technology gross profit of $615 million to $625 million and Adjusted EBITDA of $210 million to $220 million.
• Full-year Adjusted EBITDA guidance moved up to a range of $805 million to $825 million from $790 million to $810 million.

Source: Toast Form 8-K Exhibit 99.1 filed with the Securities and Exchange Commission, second quarter 2026

• The full-year gross profit range of $2,325 million to $2,355 million represents 23%-25% growth, raised from the 21%- 23% range previously guided.
• Toast attributed the change to a decision to reinvest the $10 million tariff refund received in the second quarter.

One raise does not make a pattern. The fiscal 2025 base those percentages measure against sits in the annual report for 2025.

Is Toast profitable?

Yes, on a GAAP basis and consistently. Net income was $154 million in the second quarter of 2026 against $80 million a year earlier, and operating income reached $152 million. The preceding quarter produced $126 million of net income against $56 million in the equivalent 2025 period.

Which large brands run on Toast?

BWH Hotels, the parent company of Best Western Hotels and Resorts, WorldHotels and SureStay Hotels, endorsed Toast as a point-of-sale solution available to its thousands of properties across the United States and Canada. Toast expanded its relationship with TGI Fridays and rolled out the Toast platform in the United Kingdom. UK and US restaurants use Toast’s multi-location management, mobile order and pay, kitchen display systems, and Toast Go handhelds. The chief executive also named bubble tea chain Kung Fu Tea among the quarter’s new customers.

Conclusion

Toast entered the second half of 2026 with ARR of $2.4 billion, growing 25% year over year, approximately 180,000 live locations and quarterly volume of $60.7 billion. The two most interesting numbers sit outside the headline metrics: a take rate that has barely moved, and a run-rate that excludes lending by design.

The lending book is where I would look next. Carrying restaurant credit is a different exposure from processing a restaurant’s card volume, and the next two filings will show whether it keeps compounding.