Toast added about 8,500 net locations in the third quarter, taking its base to roughly 189,000, according to the restaurant software company’s results filed November 3. The second quarter added about 9,500.
The filing, Toast’s third quarter 2026 earnings exhibit, reports locations up 21% year over year and annual recurring revenue up 24% to $2.5 billion as of September 30. Net income was $169 million against $105 million a year earlier, and adjusted EBITDA was $240 million against $176 million.
Why it matters
Toast’s second quarter 2026 exhibit reported locations up 22% to approximately 180,000, annual recurring revenue up 25% to $2.4 billion and non-GAAP recurring gross profit up 28% to $595 million. The third quarter figures are 21%, 24% and 27% (to $642 million). Each growth rate fell by one point from one quarter to the next while net income and adjusted EBITDA rose year over year.
A separate Form 8-K reports that President and Chief Financial Officer Elena Gomez will step away effective December 31, 2026. The filing says her resignation was not due to any disagreement over management, policies or practices. Michael Senno, senior vice president of finance since April 2023, becomes chief financial officer on January 1, 2027.
What it means for operators
Recurring gross profit grew 27% while locations grew 21%, so Toast earned more recurring profit per location than a year earlier. Operators renewing or comparing vendors should ask for the per-location total of subscription plus processing, not the monthly software price alone. Our earlier report on Toast IQ Team labor tools covers one of its add-on modules, and Lightspeed’s latest quarter, covered in our Lightspeed Q2 analysis, shows a rival where payments reached 45% of volume.
