Toast, Inc. shares tumbled 5.71% in after-hours trading on Tuesday, as investors reacted to the company’s second-quarter financial results. The decline came immediately after the restaurant technology platform released its Q2 earnings report.

While the company posted revenue of $1.908 billion, surpassing the analyst consensus estimate of $1.870 billion, and reported net income of $154 million, the market appeared to focus on forward-looking metrics. The company provided guidance for Q3 non-GAAP subscription services and financial technology solutions gross profit in the range of $615 million to $625 million, alongside adjusted EBITDA of $210 million to $220 million. This outlook may have fallen short of more optimistic investor expectations, triggering the post-market sell-off.

Additionally, operating expenses for the quarter came in at $364 million, which could have contributed to concerns about margin pressure despite the headline beats on earnings and revenue. The after-hours plunge suggests that the initial positive results were overshadowed by apprehension about the company's growth trajectory and profitability path.