Toast's first quarter 2026 results beat EPS estimates as recurring gross profit grew 27%, prompting a full-year guidance raise.

Toast reported first quarter 2026 results with revenue in line with expectations and a significant beat on earnings per share. The company demonstrated strong underlying growth with key metrics like non-GAAP recurring gross profit and Annualized Recurring Run-rate (ARR) growing 27% and 26% respectively, leading to an increase in full-year guidance.

Key Highlights

• Non-GAAP recurring gross profit (subscription services and financial tech solutions) grew 27% year-over-year to $529 million, exceeding the high end of the company's guidance range of $505 million to $515 million.
• Annualized recurring run-rate (ARR) reached $2.2 billion, up 26% year-over-year, as the company added approximately 7,000 net new locations during the quarter.
• Management raised its full-year 2026 forecast for recurring gross profit to a range of $2.29 billion to $2.32 billion, and for Adjusted EBITDA to a range of $790 million to $810 million.