🚀 acceleratinghigh confidence2-3 yearsVertical SaaS

Restaurant & Hospitality Tech

Toast Q1 2026: $1.63B revenue (22% YoY), $126M net income, 171K locations. ARR crossed $2.2B (up 26%).

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Growth Overview

15.9%

CAGR

+26%

YoY Growth

+70%

Search Growth

$21.2B

by 2033

12-Month Trend

Growth Rate

0%25%50%

Market Size Projection

$6.5B

Current (2025)

$21.2B

by 2033

Overview

Software for restaurant operations: POS, online ordering, inventory management, staff scheduling, review management, and kitchen display systems. Toast posted Q1 2026 revenue of $1.63B (22% YoY), with net income of $126M and $115M free cash flow. ARR crossed $2.2B (up 26% YoY), serving 171,000 locations. Gross payment volume hit $51.3B in Q1. 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 Q1 2026: $1.63B revenue (22% YoY), $126M net income; 171K locations; ARR at $2.2B (up 26%); raised full-year EBITDA guidance to $790-810M
✓Toast Q1 free cash flow $115M (up 67% YoY); gross payment volume $51.3B; Q2 guidance: $565-575M SaaS + fintech gross profit
✓Toast diluted EPS more than doubled to $0.20 (from $0.09); EBITDA $179M; consistent 20-25% revenue growth trajectory