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Toast TOST Gross margin

Gross margin at other companies

Global Payments logo
Global PaymentsGPN
67.3%-6.4pp
Block logo
BlockXYZ
44.9%+6.9pp
Cognizant logo
CognizantCTSH
33.5%-0.7pp
Fidelity National Information Services logo
Fidelity National Information ServicesFIS
36.4%-0.7pp
SoFi Technologies, Inc. logo
SoFi Technologies, Inc.SOFI
83.6%+1.4pp
Tyler Technologies logo
Tyler TechnologiesTYL
46.8%+2.1pp

Other financials

Income statement

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Revenue$1.6B+21.9%
Gross profit$447.0M+29.2%
Operating income$110.0M+156%
Net income$126.0M+125%
EPS (diluted)$0.20+122%

Balance sheet

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Cash & equivalents$1.4B+12.2%
Total debt$17.0M-22.7%
Total equity$2.0B+18.9%
Total assets$3.1B+20.7%

Cash flow

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Operating cash flow$132.0M+67.1%
CapEx$17.0M+70.0%
Free cash flow$115.0M+66.7%

Valuation

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Market cap$14.3B-18.1%
Enterprise value$12.91B-20.3%
P/E34.7×-75.9×
P/S2.2×-1.1×

Profitability

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Operating margin5.6%+3.4pp
Net margin6.4%+3.4pp
FCF margin10.1%+2.3pp

Returns & leverage

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Return on equity22.5%+11.5pp
Debt / equity0.0×
Current ratio2.4×-0.1×

Where this comes from

Calculated from Toast’s reported figures.

Based on trailing twelve months.

The official record: Toast’s 10-Q, filed May 8, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Toast's gross margin?
Toast (TOST) reported gross margin of 26.3% in Q1 2026.
How has Toast's gross margin changed year-over-year?
Toast's gross margin increased by 6.6% year-over-year, from 24.6% to 26.3%.
What is the long-term trend for Toast's gross margin?
Over 4 years (2021 to 2025), Toast's gross margin has grown at a 8.9% compound annual growth rate (CAGR), from 18.4% to 25.9%.
What does gross margin mean?
How much of every sales dollar is left after the direct cost of what was sold.
How do you interpret gross margin?
Higher and stable gross margins indicate pricing power and a durable cost structure. A declining trend signals input-cost pressure, pricing competition, or a shift toward lower-margin products.
How does gross margin compare across companies?
Highly comparable within an industry, less so across industries — software runs 70%+ while distributors run in single digits. Track the trend more than the absolute level across sectors.