Toast reported strong third quarter 2026 results, significantly exceeding analyst expectations for both revenue and earnings. Total revenue reached $1.98 billion, a 21% increase year-over-year, while the company demonstrated improved operating leverage with Adjusted EBITDA growing to $240 million. Management also announced a CFO transition, with Michael Senno slated to succeed Elena Gomez effective January 1, 2027.

Key Highlights

  • GAAP net income rose to $169 million ($0.29 per diluted share) compared to $105 million ($0.16 per share) in the prior year.
  • Total live locations increased 21% year-over-year to approximately 189,000, with 8,500 net new locations added in the quarter.
  • Annualized recurring run-rate (ARR) grew 24% to $2.5 billion, reflecting continued momentum in subscription and payment processing streams.
  • Full-year 2026 Adjusted EBITDA guidance was raised to a range of $840 million to $850 million, up from the previous range of $805 million to $825 million.