Toast, Inc. (TOST) · Nov 3, 2026 · Earnings

Toast earnings beat Q3 targets, but CFO Gomez is leaving

Beat — Adjusted EBITDA $240M vs. $210–220M Q3 guide

Toast’s Q3 earnings beat its operating targets, with ARR and EBITDA accelerating as CFO Elena Gomez prepares to leave.

Toast is scaling from a restaurant point-of-sale and payments platform into a broader recurring-revenue operating system, with AI, enterprise, international, and retail expansion now layered onto its core business. Before this release, management had guided Q3 non-GAAP subscription and fintech gross profit to $615–625 million and adjusted EBITDA to $210–220 million, after raising full-year targets in August.

The quarter beat the operating bar, not just the prior year. Non-GAAP subscription and fintech gross profit reached $642 million, above the company’s $615–625 million Q3 range, while adjusted EBITDA reached $240 million, $20 million above the top of guidance. That is meaningful execution against the standing plan, especially because Toast’s prior Q3 guide already assumed continued profitability expansion.

MetricQ3 2026Q3 2025Prior guide
Total revenue (Financial Statements)$1,981M (+21%)$1,633M
GPV (Key Business Metrics)$61.8B (+20%)$51.5B
Total ARR (Key Business Metrics)$2,503M (+24%)$2,016M
Subscription + fintech gross profit (Non-GAAP reconciliation)$642M (+27%)$506M$615–625M
Adjusted EBITDA (Adjusted EBITDA)$240M (+36%)$176M$210–220M
Free cash flow (Free Cash Flow)$181M (+18%)$153M

The underlying growth engine remains intact. GPV rose 20%, ARR rose 24%, and Toast added approximately 8,500 net locations, keeping the company’s expansion broadly consistent with the prior quarter’s roughly 22% location growth and $2.4 billion ARR base. The mix is also becoming more valuable: subscription ARR grew 28%, faster than payments ARR at 21%, while non-payments fintech gross profit increased to $69 million from $58 million. That supports Toast’s effort to make software and higher-margin services a larger part of the platform rather than relying only on payment volume. 〔0〕

The AI and retail story advanced, but remains an investment thesis rather than a proven financial driver. Toast expanded Toast IQ Grow, launched Toast IQ Team, introduced Toast Fuel for independent fuel and convenience operators, and entered Quebec. These launches widen the addressable market and reinforce the shift toward an agentic operating platform, but the filing gives no quantified revenue or adoption contribution from them yet. 〔1〕

The CFO departure is the main complication, but not an immediate operating break. Elena Gomez will leave the President and CFO roles on December 31, 2026, after leading Toast through its IPO and profitability transition; Michael Senno, an internal finance executive with institutional knowledge, takes over on January 1, 2027, while Gomez remains as an adviser through July 2, 2027. 〔2〕 The succession plan reduces execution risk, but losing a high-profile CFO still adds uncertainty around capital allocation and financial stewardship just as Toast is broadening beyond its core market.

Bottom line: Toast delivered a real operating beat, with profitability and recurring gross profit comfortably above its Q3 targets while growth stayed strong. The CFO handoff keeps this from being a clean all-clear, but it does not yet undermine the broader expansion story.**

What to watch next

Michael Senno becomes CFO on January 1, 2027

Original filing on SEC EDGAR

More Toast, Inc. news

Toast earnings beat Q3 targets, but CFO Gomez is leaving | TOST Stock News
AllSight

Breaking down Wall Street's
information edge.

A buy-side analyst on every ticker — it reads every public company's filing the instant it drops and decodes it into plain English.

—
8-K events this week
—
filings analyzed in total
live · updated 30s ago
Live events · whole market · · --:--:-- ET
AllSight read
Straight from the 8-K
Verbatim from the filing AllSight decoded — highlighted above. Open on SEC EDGAR ↗
Limited-time offerFree 14-day Pro trial
AllSight

Sign in to AllSight

  • Follow any company — we email you the moment it files, free!
  • Your watchlist saved to your account, on every device — free!

by Signing in NOW, claim your FREE 14-day Pro trial!

No password. We email you a 6-digit code. By continuing you agree to our Terms & Privacy.
AllSight · Live plain-English 8-K decodes across the whole US market · Not investment advice.