Toast, Inc. (TOST) · Q2 2026 results and valuation

At 20.0% growth a year (3-year revenue growth), the model's fair value is $51.87 a share — the stock trades 34% below it. Today's price assumes 13.9% growth a year.

1. Guidance

   Retail sales capacity has doubled over the last year and is expected to continue scaling to meet the market opportunity.

   Source quote

   “We have doubled our retail sales capacity over the last year, and we expect that to continue to scale to meet the market opportunity we see.”

2. Figure

   TOST grew recurring gross profit streams over 28% and expanded GAAP operating income margins to 26% in Q2.

   Source quote

   “In Q2, we grew recurring gross profit streams over 28% and expanded GAAP operating income margins to 26%.”

3. Fading

   2026 margin guidance still expects modest expansion, matching the plan set at the year's start.

   Source quote

   “And so that's actually the key reason why Toast IQ Grow has seen such really good early signal where we're... And for a lot of these functions, the data that is necessary to do marketing is actually coming from Toast. And we've seen 8% lift in GPV, which is a really good early signal there.”

Management was more positive answering analysts than in its script — usually a sign it was comfortable with the details it was asked about.

Sentences that drove the tone

“On a GAAP basis, we are operating above Rule of 50 with recurring gross profit growth plus operating margin reaching a high of 57% in 2Q, demonstrating the strength of...”

“With our momentum and the opportunities ahead, we believe reinvesting upside into long-term growth areas with high potential ROI is the best path to maximize our long-term enterprise value.”

“And so really across the board, where we see opportunity we're leaning in, and Elena and team do a great job of making sure that while we're leaning into growth,...”