Toast, the restaurant software and payments company, reported Toast Q3 2026 net income of $169 million on 3 November 2026, up from $105 million a year earlier, on annualised recurring run-rate of $2.5 billion, up 24%, and raised its full-year guidance, according to Toast’s results release. Toast’s results release, published five days after the Federal Trade Commission and nine states sued Toast on 29 October 2026 over alleged hidden fees and hard-to-cancel subscriptions, does not mention the lawsuit, Fintechbits found. Toast also said chief financial officer Elena Gomez will step down at the end of 2026.

The Toast Q3 2026 numbers

In Toast Q3 2026, locations rose 21% to about 189,000, with roughly 8,500 net additions in the quarter. Gross payment volume grew 20% to $61.8 billion. Subscription and financial technology gross profit, the recurring lines Toast cares most about, rose 29% to $630 million, or 27% to $642 million on a non-GAAP basis. Operating income almost doubled to $165 million and adjusted EBITDA rose to $240 million from $176 million. Free cash flow was $181 million.

With Toast Q3 2026, the company raised 2026 guidance for non-GAAP recurring gross profit to $2.375 billion to $2.385 billion, or 26% growth, from 23% to 25%. Adjusted EBITDA guidance rose to $840 million to $850 million, from $805 million to $825 million.

A CFO change and new markets

Elena Gomez, president and chief financial officer, who took Toast through its 2021 listing, steps away at year end. Michael Senno, senior vice president of finance, becomes CFO on 1 January 2027, and Gomez stays as an adviser until 2 July 2027. Chief executive Aman Narang said Toast has “scaled this business 6x since we IPO’d in 2021.”

Toast also launched Toast Fuel for independent fuel and convenience operators, expanded into Quebec so it now covers all 10 Canadian provinces, and added Toast IQ Team, a labour management tool, to its AI product line.

What the release leaves out

The FTC complaint, joined by California authorities and the attorneys general of Colorado, Florida, Illinois, Iowa, Nebraska, Oklahoma and Utah, alleges Toast imposed hidden and unauthorised fees, made subscriptions hard to cancel and failed to deliver advertised support. It also alleges Toast treats a restaurant’s cancellation as a default on a Toast Capital loan, Fintechbits reported. Toast has said it “strongly disagree[s]” with the claims.

The Toast Q3 2026 financial statements hint at where that case touches the business. Credit loss expense rose to $33 million from $26 million, and Toast bought $145 million of loans held for investment in the first nine months of 2026, a line that did not exist a year earlier. Hardware and services ran a gross loss of $85 million, up from $57 million, and inventory more than doubled to $244 million from $114 million at the end of 2025.

Fintechbits analysis

Why Toast Q3 2026 needs to be read alongside the lawsuit

Operationally this was a strong quarter: faster recurring profit growth, higher guidance and real cash generation. But the case brought by a federal regulator and nine states goes to the heart of Toast’s model, which subsidises hardware and earns its money on fees, payments and lending over time. A results release that raises guidance without a word on that case asks investors to price it at zero. Square, which runs similar economics, is pushing into lending too, as Fintechbits noted with its credit card launch.

Frequently asked questions

What did Toast report for Toast Q3 2026?

Toast reported net income of $169 million, adjusted EBITDA of $240 million and annualised recurring run-rate of $2.5 billion, up 24%. Locations grew 21% to about 189,000.

Did Toast raise its guidance?

Yes. Toast raised 2026 non-GAAP recurring gross profit guidance to $2.375 billion to $2.385 billion and adjusted EBITDA guidance to $840 million to $850 million.

Who is Toast’s new CFO?

Michael Senno, senior vice president of finance, becomes chief financial officer on 1 January 2027, succeeding Elena Gomez, who stays as an adviser until 2 July 2027.

What to watch next

Toast’s 10-Q for Toast Q3 2026 will show whether it discloses the FTC case as a material legal matter and whether it has set aside any reserve. Fourth-quarter adjusted EBITDA against the $200 million to $210 million guide will show whether growth holds while the case proceeds.