Restaurant & Hospitality Tech
Toast Q2 2026: ARR $2.4B (up 25%), record 9,500 net location adds, ~180K locations. GAAP operating margin expanded to 26%.
Growth Overview
12-Month Trend
Growth Rate
Market Size Projection
Overview
Software for restaurant operations: POS, online ordering, inventory management, staff scheduling, review management, and kitchen display systems. Toast posted Q2 2026 ARR of $2.4B (up 25% YoY) across approximately 180,000 locations (up 22%), adding a record 9,500 net locations in the quarter. Gross payment volume hit $60.7B (up 22%), net income nearly doubled to $154M, and GAAP operating margin expanded to 26%. Recurring gross profit streams grew 28%. International, enterprise, and retail are set to nearly double to roughly $200M in combined ARR in 2026, and Toast IQ Grow, the company's AI marketing agent, is tracking to become the fastest product in company history to reach $10M ARR. Restaurant management software market reached $6.5B in 2026, growing at 15.9% CAGR. 79% of US restaurants have implemented or are considering AI-native POS.
What's Driving This Growth?
- ▸Labor costs at all-time highs, forcing automation of ordering and scheduling
- ▸Online ordering and delivery now 35% of restaurant revenue (up from 10% pre-2020)
- ▸79% of US restaurants implementing or considering AI-native POS software
- ▸1 in 4 limited-service operators plan to invest in kitchen automation and AI-driven inventory in 2026
Market Signals
- ✓Toast Q2 2026: ARR $2.4B (up 25%), record 9,500 net location adds to ~180K total (up 22%); GPV $60.7B (up 22%); net income $154M vs $80M a year earlier; adjusted EBITDA $221M
- ✓Toast IQ Grow, an AI marketing agent, is on track to be the fastest product in company history to reach $10M ARR; international, enterprise, and retail segments set to nearly double to ~$200M combined ARR in 2026
- ✓TouchBistro (16,000+ restaurants) was acquired by Constellation Software subsidiary Harris Computer for ~$100M (Jul 7, 2026), a nine-figure loss for backer OMERS and a sign of restaurant-tech consolidation
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