Toast, Inc. — Form 8-K
Filed August 4, 2026 · analyzed by the 8-K Agent
8-K
— Neutral
significance 52/100
What the filing says
Toast reported Q2 2026 net income of $154M (vs. $80M YoY) and Adjusted EBITDA of $221M (vs. $161M YoY). ARR grew 25% YoY to $2.4B as of June 30, 2026; total locations increased 22% YoY to ~180,000; GPV grew 22% YoY to $60.7B. The company repurchased 19M shares for $486M YTD through June 30, 2026. However, free cash flow declined to $130M in Q2 2026 from $208M in Q2 2025 (down 37%), and operating cash flow fell to $144M from $223M (down 35%).
Why this rating
Strong topline growth (25% ARR, 22% locations/GPV) and margin expansion are positive; $486M buyback signals confidence. However, 37% FCF decline and 35% operating cash flow decline despite 25% ARR growth suggest operational leverage weakness—cash conversion deteriorating. Scale modestly material vs. $23B market cap (~2.1% of FCF decline $62M nominal). Growth offseted by cash flow concerns.
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