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Toast TOST Hardware and professional services — Cost of revenue

Other product segments

Financial technology solutions
$1.21B+22.1%
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
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
Operating expenses:

Item 1. Financial Statements (unaudited)

FAQ

What is Toast's hardware and professional services — cost of revenue?
Toast (TOST) reported hardware and professional services — cost of revenue of $116M in Q2 2026.
How has Toast's hardware and professional services — cost of revenue changed year-over-year?
Toast's hardware and professional services — cost of revenue increased by 14.9% year-over-year, from $101M to $116M.
What is the long-term trend for Toast's hardware and professional services — cost of revenue?
Over 4 years (2021 to 2025), Toast's hardware and professional services — cost of revenue has grown at a 18.3% compound annual growth rate (CAGR), from $204M to $400M.
What does hardware and professional services — cost of revenue mean?
This metric captures the direct costs associated with producing, shipping, and installing hardware units, as well as the labor costs for professional services provided to clients. It reflects the operational expense required to deliver the physical infrastructure necessary for the company's software platform. Monitoring this helps evaluate the efficiency of the hardware supply chain and service delivery model.

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