Toast outlines 20%-22% recurring gross profit growth for 2026 while advancing AI-driven platform strategy

What we drew from this source

The claims Via News extracted from this document. We point to the source; we don't replace it.

• Toast is a lot more than just a software provider for customers, evolving into a platform

  80% confidence

• Toast guidance includes approximately 150 basis points of negative impact from higher memory chip costs for hardware

  80% confidence

• Toast achieved recurring gross profits growth of 33% in 2025

  80% confidence

• Toast expects Q1 2026 adjusted EBITDA of $160 million to $170 million

  80% confidence

• Toast expanded adjusted EBITDA margin to 34% in 2025

  80% confidence

• GAAP operating income was $292 million in 2025, up from just $16 million a year ago

  80% confidence

• Toast expects another year of record net location adds and consistent ARPU growth

  80% confidence

• Net location adds increased every quarter versus a year ago in 2025

  80% confidence

• Toast ended 2025 with 164,000 locations

  80% confidence

• Customers value ToastIQ as a copilot that can be queried for faster task execution

  80% confidence

• The new TAM should grow further, which is why Toast has confidence that net add growth in 2026 should be even higher than 2025

  80% confidence

• ToastIQ not only generates reports and insights about restaurant performance, it executes tasks directly in Toast ranging from menu management to inventory updates

  80% confidence

• Toast expects adjusted EBITDA of $775 million to $795 million for full year 2026

  80% confidence

• Toast added over 30,000 net locations to the Toast platform in 2025

  80% confidence

• Toast's margin framework targeting 40% margins over the long term remains unchanged

  80% confidence

• ARR grew 26% in 2025

  80% confidence

• ToastIQ and the adoption of ToastIQ is really the foundation for AI strategy

  80% confidence

• Less than 4 months post launch, over half of all Toast locations have used ToastIQ, collectively sending over 8 million queries

  80% confidence

• 2026 reflects Toast's conviction behind new TAMs

  80% confidence

• Toast now powers 20% of the U.S. SMB and mid-market restaurant segment

  80% confidence

• Emerging TAMs across retail, international and enterprise doubled ARR in 2025

  80% confidence

• AI is an opportunity for Toast to lean in even further and strengthen competitive moat

  80% confidence

• Toast expects 20% to 22% growth in recurring gross profit streams for full year 2026

  80% confidence

• Toast delivered adjusted EBITDA of $633 million and free cash flow of $608 million in 2025

  80% confidence

• Toast's U.S. market share has nearly doubled over the past three years

  80% confidence

• Core SaaS ARPU is growing faster than the total company because new TAMs today have lower SaaS ARPUs but are expected to grow as they scale

  80% confidence

• Toast expects Q1 2026 total fintech and subscription gross profit growth of 22% to 24% year-over-year

  80% confidence

Cited in these Via News reports

• Editorial Standards Violation: AI Enterprise Claims Lack Source Documentation →
• Financial Giants Deploy AI Assistants in Banking and Insurance as GenAI Reaches Production Phase →