Toast Raises 2026 Adjusted EBITDA Outlook to $840 Million-$850 Million

Toast raised its 2026 adjusted EBITDA outlook to $840 million-$850 million, from $805 million-$825 million, and increased its growth forecast for recurring gross profit streams to 26% Tuesday, Nov. 3.

The company expects non-GAAP subscription services and financial technology solutions gross profit — which it calls recurring gross profit streams — to total $2.375 billion-$2.385 billion in 2026. The revised growth forecast compares with its previous range of 23%-25%. Toast provides software and financial technology products for restaurant and retail businesses.

The midpoint of the new adjusted EBITDA range is $845 million, up $30 million from the midpoint of its previous forecast. Adjusted EBITDA measures earnings before interest, taxes, depreciation and amortization, with specified adjustments.

In the third quarter, recurring gross profit streams increased 27% from a year earlier to $642 million. Adjusted EBITDA was $240 million, compared with $176 million in the third quarter of 2025.

“We had another strong quarter: recurring gross profit streams grew 27%, GAAP Operating Income margin expanded to 26% and we added approximately 8,500 net locations,” Toast CEO Aman Narang said.

Toast reported third-quarter GAAP operating income of $165 million, up from $84 million a year earlier. Net income was $169 million, compared with $105 million. As of Sept. 30, Toast’s annual recurring run-rate was $2.5 billion, up 24%.

Toast’s fourth-quarter guidance calls for $610 million-$620 million in recurring gross profit streams and $200 million-$210 million in adjusted EBITDA. The gross profit forecast represents growth of 22%-24% from the same quarter in 2025.

Toast said it could not reconcile its projected non-GAAP measures with comparable GAAP measures without unreasonable effort because forecasting future adjustments is difficult.