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Toast TOST Subscription services — Cost of revenue

Other product segments

Financial technology solutions
$1.21B+22.1%
Hardware and professional services
$116M+14.9%

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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
Hardware and professional services48478793
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

Item 1. Financial Statements (unaudited)

FAQ

What is Toast's subscription services — cost of revenue?
Toast (TOST) reported subscription services — cost of revenue of $64M in Q2 2026.
How has Toast's subscription services — cost of revenue changed year-over-year?
Toast's subscription services — cost of revenue decreased by 0.0% year-over-year, from $64M to $64M.
What is the long-term trend for Toast's subscription services — cost of revenue?
Over 4 years (2021 to 2025), Toast's subscription services — cost of revenue has grown at a 43.1% compound annual growth rate (CAGR), from $63M to $264M.
What does subscription services — cost of revenue mean?
This metric captures the direct costs associated with delivering and supporting the company's subscription software services. It includes expenses related to cloud hosting infrastructure, customer support personnel, and the amortization of capitalized software development costs. Monitoring this helps evaluate the scalability and gross margin efficiency of the software-as-a-service business model.

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