Toast Raises Outlook as Q3 EPS Jumps 81.3%; CFO Elena Gomez to Step Away, Michael Senno Named Successor

Toast raised its full-year profit outlook after third-quarter diluted earnings per share jumped 81.3% to $0.29, and said President and Chief Financial Officer Elena Gomez will step away at the end of the year, with finance executive Michael Senno named to succeed her as CFO.

Revenue rose 21.3% to $1.98 billion from $1.63 billion a year earlier, according to the earnings release the restaurant software and payments company filed with an 8-K on Tuesday. Net income climbed 61.0% to $169 million from $105 million, and diluted EPS rose from $0.16. Operating income rose 96.4% to $165 million from $84 million, while adjusted EBITDA grew 36.4% to $240 million from $176 million.

"We had another strong quarter: recurring gross profit streams grew 27%, GAAP Operating Income margin expanded to 26%," CEO Aman Narang said in the release. He added that the company's Fall Release moves Toast "toward agents that take on the work for them."

CFO transition

Gomez notified Toast on Oct. 28 of her decision to step away as president and CFO effective Dec. 31, 2026, according to the same 8-K, which said her resignation was not due to any disagreement with the company. She will remain in an advisory role as a non-executive employee through July 2, 2027.

The board appointed Senno, 46, currently senior vice president of finance, as CFO and principal financial officer effective Jan. 1, 2027. Senno has held that role since April 2023 and previously served as Toast's vice president of finance, overseeing finance and strategy, treasury and investor relations. Before joining Toast, he was vice president of investor relations at Coupang, and he earlier held treasury and investor relations roles at Expedia Group and Time Warner. He will receive a base salary of $460,000 a year, with an annual target bonus of 75% of base salary.

Gomez, who has been at Toast for five and a half years, led the company through its 2021 IPO. "It is now time for me to take a break before my next chapter," she said in the release.

Recurring gross profit climbs

Subscription services revenue rose 29.9% to $317 million, and financial technology solutions revenue increased 20.4% to $1.62 billion. Hardware and professional services revenue was $45 million, versus $44 million.

Gross profit from subscription services and financial technology solutions grew 29% to $630 million, and the non-GAAP version of that measure, which Toast calls its recurring gross profit streams, rose 27% to $642 million, the company said. Annualized recurring run-rate grew 24% to $2.5 billion, gross payment volume increased 20% to $61.8 billion, and total locations rose 21% to an estimated 189,000, the company said. Toast added an estimated 8,500 net new locations in the quarter, according to the release.

Outlook raised

For the full year, Toast now expects non-GAAP subscription services and financial technology solutions gross profit of $2.375 billion to $2.385 billion, or 26% growth, up from its prior forecast of 23% to 25% growth. It raised its adjusted EBITDA outlook to $840 million to $850 million from $805 million to $825 million.

For the fourth quarter, it expects that gross profit measure to reach $610 million to $620 million, up 22% to 24%, with adjusted EBITDA of $200 million to $210 million.

Cash flow

Operating cash flow rose 20.0% to $198 million, and free cash flow increased 18.3% to $181 million from $153 million. Toast did not repurchase shares in the quarter, compared with $23 million a year earlier, though it has spent $486 million on buybacks so far this year.

By the numbers

• Revenue: $1.98 billion, up 21.3%
• Diluted EPS: $0.29, up 81.3%
• Adjusted EBITDA: $240 million, up 36.4%
• Full-year adjusted EBITDA outlook: $840 million to $850 million, raised
• Gross payment volume: $61.8 billion, up 20%
• CFO succession: Michael Senno, effective Jan. 1, 2027

Sources

1. Toast Form 8-K with third-quarter 2026 earnings release and CFO transition (Items 2.02 and 5.02), filed Nov. 3, 2026 (accession 0001650164-26-000214)

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