Toast, Inc.
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 4, 2026
TOST$34.67-1.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001650164-26-000164
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0001650164-26-000216
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 53 previous paragraphs and 53 current paragraphs.
42 unchanged; 11 reworded; 0 added; 0 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Reworded paragraphs (11)
Previous wording
As of June 30, 2026, Toast served approximately 180,000 Locations, up 22% compared to one year ago, and processed $215 billion in gross payment volume over the trailing 12 months.
Current wording
As of September 30, 2026, Toast served approximately 189,000 Locations, up 21% compared to one year ago, and processed $225 billion in gross payment volume over the trailing 12 months.
Previous wording
Total revenue increased by 23% for the three and six months ended June 30, 2026, compared to the same periods in 2025. This growth was primarily driven by increases in financial technology solutions and subscription services revenue, attributable to a higher number of Locations on the Toast platform and continued product adoption.
Current wording
Total revenue increased by 21% and 22% for the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. This increase was primarily driven by higher financial technology solutions and subscription services revenues, attributable to a higher number of Locations on the Toast platform and continued product adoption.
Previous wording
Total costs of revenue increased by 20% for the three and six months ended June 30, 2026, compared to the same periods in 2025. The increase was primarily driven by higher financial technology solutions costs associated with increased gross payment volume, offset by a one-time benefit of approximately $10 million related to tariff refunds.
Current wording
Total costs of revenue increased by 20% for the three and nine months ended September 30, 2026, compared to the same periods in 2025. The increase was primarily driven by higher financial technology solutions costs associated with increased gross payment volume.
Previous wording
Total operating expenses increased by 17% and 14%, for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. This increase was primarily driven by higher employee-related costs.
Current wording
Total operating expenses increased by 9% and 12%, for the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025. This increase was primarily driven by higher employee-related costs as we continue to expand our sales and marketing efforts.
Previous wording
(1)Restructuring expenses for the three and six months ended June 30, 2025 include $1 million and $5 million, respectively, of severance benefits and $— million and $3 million, respectively of stock-based compensation expense.
Current wording
(1)Restructuring expenses for the three and nine months ended September 30, 2026 include $6 million of severance benefits. Restructuring expenses for the three and nine months ended September 30, 2025 include $— million and $5 million, respectively, of severance benefits and $— million and $3 million, respectively, of stock-based compensation expense.
Previous wording
(1) Excludes $216 million of cash held on behalf of customers and $73 million of restricted cash.
Current wording
(1) Excludes $154 million of cash held on behalf of customers and $76 million of restricted cash.
Previous wording
The net decrease in cash, cash equivalents and marketable securities in the six months ended June 30, 2026 was primarily driven by cash used in financing activities of $412 million and cash used in investing activities of $142 million, partially offset by cash provided by operating activities of $274 million (which excludes changes in the balance of restricted cash).
Current wording
The net decrease in cash, cash equivalents and marketable securities in the nine months ended September 30, 2026 was primarily driven by cash used in financing activities of $450 million and cash used in investing activities of $172 million, partially offset by cash provided by operating activities of $469 million (which excludes changes in the balance of restricted cash of $5 million).
Previous wording
The decrease in net cash provided by operating activities during the six months ended June 30, 2026, compared to the same period in 2025, was driven by changes in net working capital, primarily attributable to higher inventory purchases. This increase in cash outflows was partially offset by higher net income, which increased from $136 million during the six months ended June 30, 2025, to $280 million for the same period in 2026.
Current wording
The increase in net cash provided by operating activities during the nine months ended September 30, 2026, compared to the same period in 2025, was primarily driven by net income of $449 million during the nine months ended September 30, 2026 as compared to net income of $241 million during the same period last year. This increase in cash inflows was partially offset by changes in net working capital, primarily attributable to higher inventory purchases.
Previous wording
The increase in net cash used in investing activities during the six months ended June 30, 2026, compared to the same period in 2025, was primarily driven by higher net purchases of marketable securities and loans held for investment, partially offset by proceeds from repayment of loans held for investment.
Current wording
The increase in net cash used in investing activities during the nine months ended September 30, 2026, compared to the same period in 2025, was primarily driven by higher net purchases of marketable securities and higher purchases of loans held for investment, partially offset by proceeds from repayment of loans held for investment.
Previous wording
The increase in net cash used in financing activities during the six months ended June 30, 2026, compared to the same period in 2025, was primarily driven by an increase in cash paid to repurchase our shares.
Current wording
The increase in net cash used in financing activities during the nine months ended September 30, 2026, compared to the same period in 2025, was primarily driven by an increase in cash paid to repurchase our shares.
Previous wording
During the three and six months ended June 30, 2026, we repurchased $159 million and $486 million in Class A common stock, respectively. As of June 30, 2026, approximately $100 million remained authorized for repurchase under our share repurchase program.
Current wording
During the three months ended September 30, 2026, the Company did not repurchase any shares of its Class A common stock. During the nine months ended September 30, 2026, the Company repurchased $486 million of its Class A common stock. As of September 30, 2026, approximately $100 million remained authorized for repurchase under the share repurchase program.