TOST Stock Slips After Earnings – Retail Says Company Is 'Really Toasted'

Toast (TOST) reported Q2 revenue of $1.91B, up 23%, with net income of $154M. The payments business drove $360M in gross profit, while subscription services had higher margins. Hardware and services had negative gross margins. The company uses payments to attract customers for higher-margin services.

Toast (TOST) shares rose 3.4% after announcing a partnership with Innspire to integrate mobile ordering for hotels. The deal expands Toast's market and strengthens its POS system. TOST closed at $34.96, up 1.9% from the previous day. The stock is volatile, with a 22.6% drop from its 52-week high.

Toast (TOST) shares rebounded after an early-year drop, following Q2 results. Revenue rose 23% to $1.91B, subscription revenue grew 28% to $290M, and GPV increased 22% to $60.7B. ARR rose 25% to $2.4B. Toast raised 2026 guidance for subscription and fintech gross profit to $2.325B-$2.355B.

Toast (NYSE:TOST) reported Q2 SaaS ARR up 27% and subscription gross profit up 32%, with SaaS gross margin up about 240 bps. Payments ARR rose 23% and fintech gross profit rose 26%. Total take rate was 98 bps. Toast highlighted Toast IQ Grow, expects new-market ARR near $200M, raised 2026 outlook, and guided Q3 adjusted EBITDA of $210M-$220M.

Google announced Ask Maps in Google Maps, using Gemini AI to let users order food via multi-step requests and route-based restaurant selection. Square (Block) and Toast are early POS partners, syncing menus and enabling checkout through Square or Toast apps. Uber Eats support is coming, and Toast will promote $5 Toast Cash for orders via Ask Maps.

Toast (NYSE:TOST) shares rose 2.75% after the company said it expanded its integration with Google to enable AI-powered ordering via Google Maps. Through Ask Maps, users can view a Toast restaurant menu and place orders directly, with orders routed through Toast’s ordering system. Toast will offer $5 Toast Cash for next orders, with launch expected in late August.