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Toast TOST Financial technology solutions — Cost of revenue

Other product segments

Hardware and professional services
$116M+14.9%
Subscription services
$64M0.0%

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Other financials

Income statement

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Revenue$1.9B+23.1%
Gross profit$516.0M+31.6%
Operating income$152.0M+90.0%
Net income$154.0M+92.5%
EPS (diluted)$0.26+100%

Balance sheet

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Cash & equivalents$1.3B-8.5%
Total debt$17.0M-22.7%
Total equity$2.0B+12.5%
Total assets$3.2B+15.0%

Cash flow

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Operating cash flow$144.0M-35.4%
CapEx$14.0M-6.7%
Free cash flow$130.0M-37.5%

Valuation

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Market cap$20.18B-24.6%
P/E41.5×-78.0×
P/S-1.9×

Profitability

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Gross margin26.7%+1.5pp
Operating margin6.3%+2.9pp
Net margin7.1%+3.1pp
FCF margin8.5%-0.7pp

Returns & leverage

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Return on equity25.2%+10.7pp
Debt / equity0.0×
Current ratio2.4×-0.2×

Where this comes from

Reported directly by Toast in its filing.

Tagged under the XBRL concept us-gaap:CostOfGoodsAndServicesSold.

The source filing: Toast’s 10-Q, filed August 5, 2026.

Filed
Aug 4, 2026, 8:00 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0001650164-26-000164
Line itemThree Months Ended June 30, 2026Three Months Ended June 30, 2025Six Months Ended June 30, 2026Six Months Ended June 30, 2025
Total revenue1,9081,5503,5382,887
Costs of revenue:
Subscription services6464124130
Financial technology solutions1,2119922,2221,823
Hardware and professional services116101227194
Amortization of acquired intangible assets1122
Total costs of revenue1,3921,1582,5752,149
Gross profit516392963738

Item 1. Financial Statements (unaudited)

FAQ

What is Toast's financial technology solutions — cost of revenue?
Toast (TOST) reported financial technology solutions — cost of revenue of $1.21B in Q2 2026.
How has Toast's financial technology solutions — cost of revenue changed year-over-year?
Toast's financial technology solutions — cost of revenue increased by 22.1% year-over-year, from $992M to $1.21B.
What is the long-term trend for Toast's financial technology solutions — cost of revenue?
Over 4 years (2021 to 2025), Toast's financial technology solutions — cost of revenue has grown at a 36.5% compound annual growth rate (CAGR), from $1.12B to $3.89B.
What does financial technology solutions — cost of revenue mean?
This metric captures the direct costs associated with delivering financial technology and payment processing services, including interchange fees paid to card networks, bank processing fees, and costs related to payment hardware and support. It serves as a measure of the variable costs required to maintain the company's transaction processing capabilities. Monitoring this metric is essential for evaluating the gross margin efficiency of the payment processing segment.

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