Slide 1: Toast Second Quarter 2026 Earnings Call - Prepared Remarks
Toast Second Quarter 2026 Earnings Call - Prepared Remarks Michael Senno, SVP Finance Thank you. Welcome to Toast’s second quarter 2026 earnings call. Toast’s CEO, Aman Narang and CFO, Elena Gomez will open with prepared remarks followed by Q&A. Before we start, I'd like to remind everyone that toda
Slide 2: Customer wins and priorities for the back half
real business outcomes for customers. For example, Toast IQ Grow, our marketing agent, is the fastest growing product we have ever launched, and it's giving us more conviction in our AI opportunity and its potential to scale ARPU over time. I'm so thankful to our incredible Toast team, who continue
Slide 3: Toast IQ Grow and the agentic marketing workflow
Digital marketing is the first agentic workflow we launched and we have seen tremendous success thus far. In fact, ToastIQ Grow is on track to become the fastest growing product to $10M in ARR. The early customer reception reinforces that we're solving a real problem and have a large opportunity to
Slide 4: Building agentic products on data and context
change looks like versus a bad one, when a staffing pattern signals trouble, and which pricing moves hold up in a given market. Over time, we plan to build on Toast IQ Grow and roll out a series of agentic products on top of our software platform using our data and context advantage. This opens up a
Slide 5: New markets: enterprise, venues and retail opportunity
space, estimated to be a $500M ARR opportunity in the US alone. These customers - across stadiums and corporate dining environments like schools, museums, and theme parks - represent an adjacent market to the traditional restaurant TAM we serve, and we have roughly doubled our location count in this
Slide 6: Longer-term bets and $10B ARR ambition
over time. In addition, we're also seeding longer-term bets - in areas such as consumer and new retail TAMs - where our scale and platform advantage gives us a unique opportunity to compete and win. Given these are earlier stage opportunities, we will be disciplined in how we invest and will keep yo
Slide 7: Payments and fintech results
approximately 240 basis points year-over-year from ongoing optimization efforts, including leveraging AI to transform customer support. Payments ARR grew 23% and fintech gross profit increased 26% in the second quarter versus a year ago. GPV was $61 billion dollars, up 22% with GPV per location flat
Slide 8: Operating expenses and Adjusted EBITDA
Sales & marketing expenses increased 22%, reflecting incremental investments to support our sustained strong location growth. In the core, we’re growing our upsell and account management teams, and going deeper across sub-segments of the TAM like non-native English-speaking customers. Plus we’re inc
Slide 9: Raised full-year 2026 outlook
On the back of our strong first-half results, we’re raising our full-year 2026 outlook. We now expect recurring gross profit to grow 23 to 25% and Adjusted EBITDA to be $805 to $825 million dollars. We strategically chose to reinvest the tariff refund into key growth initiatives and to seed long-ter
Slide 10: Reinvesting upside and long-term margin path
With our momentum and the opportunities ahead, we believe reinvesting upside into long term growth areas with high potential ROI is the best path to maximize our long-term enterprise value. In 2026, we’re managing to modest margin expansion, consistent with the framework we laid out coming into the