$TOST

Toast, Inc.

CIK:0001650164|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue:
Total revenue	$ 1,908	$ 1,550	$ 3,538	$ 2,887
Costs of revenue:
Amortization of acquired intangible assets	1	1	2	2
Total costs of revenue	1,392	1,158	2,575	2,149
Gross profit	516	392	963	738
Operating expenses:
Sales and marketing	166	141	322	274
Research and development	109	91	206	175
General and administrative	89	79	173	158
Restructuring expenses	0	1	0	8
Total operating expenses	364	312	701	615
Operating income	152	80	262	123
Other income:
Interest income, net	11	11	24	23
Change in fair value of warrant liability	(1)	(8)	7	(5)
Income before taxes	162	83	293	141
Income tax expense	(8)	(3)	(13)	(5)
Net income	$ 154	$ 80	$ 280	$ 136
Earnings per share:
Basic (in dollars per share)	$ 0.27	$ 0.14	$ 0.48	$ 0.24
Diluted (in dollars per share)	$ 0.26	$ 0.13	$ 0.46	$ 0.23
Weighted-average shares used in computing earnings per share:
Basic (in shares)	578	580	583	577
Diluted (in shares)	590	605	596	604
Subscription services
Revenue:
Total revenue	$ 290	$ 227	$ 558	$ 436
Costs of revenue:
Cost of revenue	64	64	124	130
Financial technology solutions
Revenue:
Total revenue	1,570	1,276	2,893	2,358
Costs of revenue:
Cost of revenue	1,211	992	2,222	1,823
Hardware and professional services
Revenue:
Total revenue	48	47	87	93
Costs of revenue:
Cost of revenue	$ 116	$ 101	$ 227	$ 194

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 280	$ 136
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	22	35
Stock-based compensation expense	109	120
Amortization of deferred contract acquisition costs	46	48
Credit loss expense	54	40
Other non-cash items	(6)	5
Changes in operating assets and liabilities:
Accounts receivable, net	(25)	(16)
Other current assets	(30)	(10)
Deferred contract acquisition costs	(93)	(73)
Inventories, net	(103)	15
Accounts payable	(8)	13
Accrued expenses and other current liabilities	25	(3)
Deferred revenue	9	2
Other assets and liabilities	(4)	(10)
Net cash provided by operating activities	276	302
Cash flows from investing activities:
Capital expenditures	(31)	(25)
Purchases of marketable securities	(304)	(281)
Proceeds from the sale of marketable securities	82	97
Maturities of marketable securities	161	193
Purchases of loans classified as held for investment	(80)	0
Proceeds from repayments of loans classified as held for investment	30	0
Net cash (used in) investing activities	(142)	(16)
Cash flows from financing activities:
Payment of issuance costs of the revolving credit facility	0	(3)
Change in customer funds obligations, net	57	45
Proceeds from issuance of common stock	17	40
Cash paid to repurchase Class A common stock	(486)	(31)
Net cash provided by (used in) financing activities	(412)	51
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(1)	3
Net increase (decrease) in cash, cash equivalents, cash held on behalf of customers and restricted cash	(279)	340
Cash, cash equivalents, cash held on behalf of customers and restricted cash at beginning of period	1,583	1,085
Cash, cash equivalents, cash held on behalf of customers and restricted cash at end of period	1,304	1,425
Reconciliation of cash, cash equivalents, cash held on behalf of customers and restricted cash
Cash and cash equivalents	1,015	1,194
Cash held on behalf of customers	216	168
Restricted cash	73	63
Total cash, cash equivalents, cash held on behalf of customers and restricted cash	$ 1,304	$ 1,425

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 1,015	$ 1,353
Marketable securities	698	638
Accounts receivable, net	142	127
Inventories, net	217	114
Other current assets	578	437
Total current assets	2,650	2,669
Property, equipment and right-of-use assets, net	149	132
Intangible assets, net	11	14
Goodwill	113	113
Restricted cash	73	71
Other non-current assets	185	146
Total non-current assets	531	476
Total assets	3,181	3,145
Current liabilities:
Accounts payable	40	47
Deferred revenue	77	68
Accrued expenses and other current liabilities	987	854
Total current liabilities	1,104	969
Other long-term liabilities	32	52
Total liabilities	1,136	1,021
Commitments and Contingencies (Note 11)
Stockholders’ Equity:
Preferred stock, par value $0.000001 per share; 100 million shares authorized; no shares issued or outstanding	0	0
Common stock, par value $0.000001 per share: Class A - 7,000 million shares authorized; 512 million and 523 million shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively Class B - 700 million shares authorized; 65 million and 66 million shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	0	0
Accumulated other comprehensive income (loss)	(2)	2
Additional paid-in capital	3,029	3,384
Accumulated deficit	(982)	(1,262)
Total stockholders’ equity	2,045	2,124
Total liabilities and stockholders’ equity	$ 3,181	$ 3,145