Toast Inc (NYSE:TOST) shares are trading lower on Friday following first-quarter results reported on Thursday's after-hours session.

Toast Beats Estimates In Q1

• Revenue: $1.630 billion, versus estimates of $1.629 billion
• EPS: 20 cents, versus estimates of 15 cents

Key Metrics

Annualized recurring run-rate (ARR) grew 26% year over year (Y/Y) to $2.2 billion as of March 31, 2026. Gross Payment Volume (GPV) increased 22% Y/Y to $51.3 billion.

Subscription services and financial technology adjusted gross profit rose 27% Y/Y to $529 million.

Operating income jumped to $110 million from $43 million a year earlier, and net income more than doubled to $126 million from $56 million.

Adjusted EBITDA rose to $179 million versus $133 million in the prior-year period.

Cash generation also strengthened, with operating cash flow of $132 million and free cash flow of $115 million.

Toast said total locations increased 22% Y/Y to approximately 171,000 after it added 7,000 net new Locations in first quarter.

Toast repurchased shares worth $378 million year-to-date through May 6, 2026.

Toast CEO Aman Narang said, “AI is helping us both build faster and drive more impact for our customers. For example, the launch of Toast IQ Grow includes our first AI agent and aims to help restaurants optimize their digital presence and drive more demand. We see strong momentum across both our core as well as our new markets, and with the incredible opportunities AI creates I’ve never been more confident in our ability to scale this business.”

Outlook

For the second quarter, Toast expects adjusted subscription and financial technology gross profit of $565–$575 million, reflecting 22%–24% year-over-year growth. Adjusted EBITDA is projected at $185–$195 million.

For full-year 2026, the company now guides to adjusted gross profit of $2.29–$2.32 billion, representing 21%–23% growth (up from prior 20%–22% outlook). Adjusted EBITDA is expected in the range of $790–$810 million, revised higher from $775–$795 million.

TOST Price Action: Toast shares were down 15.42% at $24.85 at the time of publication on Friday. The stock is trading near its 52-week low of $24.35, according to Benzinga Pro data.

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