TOAST, INC., 10-Q filed on 8/5/2026
Quarterly Report
v3.26.1
Cover Page - shares
shares in Millions
 6 Months Ended
Jun. 30, 2026
Jul. 30, 2026
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2026  
Document Transition Report false  
Entity File Number 001-40819  
Entity Registrant Name Toast, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 45-4168768  
Entity Address, Address Line One 333 Summer Street  
Entity Address, City or Town Boston,  
Entity Address, State or Province MA  
Entity Address, Postal Zip Code 02210  
City Area Code 617  
Local Phone Number 297-1005  
Title of 12(b) Security Class A common stock, par value of $0.000001 per share  
Trading Symbol TOST  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Central Index Key 0001650164  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2026  
Document Fiscal Period Focus Q2  
Common Class A    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   514
Common Class B    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   64
v3.26.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Jun. 30, 2026
Dec. 31, 2025
Current assets:    
Cash and cash equivalents $ 1,015 $ 1,353
Marketable securities 698 638
Accounts receivable, net 142 127
Inventories, net 217 114
Other current assets 578 437
Total current assets 2,650 2,669
Property, equipment and right-of-use assets, net 149 132
Intangible assets, net 11 14
Goodwill 113 113
Restricted cash 73 71
Other non-current assets 185 146
Total non-current assets 531 476
Total assets 3,181 3,145
Current liabilities:    
Accounts payable 40 47
Deferred revenue 77 68
Accrued expenses and other current liabilities 987 854
Total current liabilities 1,104 969
Other long-term liabilities 32 52
Total liabilities 1,136 1,021
Commitments and Contingencies (Note 11)
Stockholders’ Equity:    
Preferred stock, par value $0.000001 per share; 100 million shares authorized; no shares issued or outstanding 0 0
Common stock, par value $0.000001 per share: Class A - 7,000 million shares authorized; 512 million and 523 million shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively Class B - 700 million shares authorized; 65 million and 66 million shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 0 0
Accumulated other comprehensive income (loss) (2) 2
Additional paid-in capital 3,029 3,384
Accumulated deficit (982) (1,262)
Total stockholders’ equity 2,045 2,124
Total liabilities and stockholders’ equity $ 3,181 $ 3,145
v3.26.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Jun. 30, 2026
Dec. 31, 2025
Stockholders’ Equity:    
Preferred stock, par value (in dollars per share) $ 0.000001 $ 0.000001
Preferred stock, authorized (in shares) 100,000,000 100,000,000
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
Class A common stock    
Stockholders’ Equity:    
Common stock, par value (in dollars per share) $ 0.000001 $ 0.000001
Common stock, authorized (in shares) 7,000,000,000 7,000,000,000
Common stock, issued (in shares) 512,000,000 523,000,000
Common stock, outstanding (in shares) 512,000,000 523,000,000
Class B common stock    
Stockholders’ Equity:    
Common stock, par value (in dollars per share) $ 0.000001 $ 0.000001
Common stock, authorized (in shares) 700,000,000 700,000,000
Common stock, issued (in shares) 65,000,000 66,000,000
Common stock, outstanding (in shares) 65,000,000 66,000,000
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Revenue:        
Total revenue $ 1,908 $ 1,550 $ 3,538 $ 2,887
Costs of revenue:        
Amortization of acquired intangible assets 1 1 2 2
Total costs of revenue 1,392 1,158 2,575 2,149
Gross profit 516 392 963 738
Operating expenses:        
Sales and marketing 166 141 322 274
Research and development 109 91 206 175
General and administrative 89 79 173 158
Restructuring expenses 0 1 0 8
Total operating expenses 364 312 701 615
Operating income 152 80 262 123
Other income:        
Interest income, net 11 11 24 23
Change in fair value of warrant liability (1) (8) 7 (5)
Income before taxes 162 83 293 141
Income tax expense (8) (3) (13) (5)
Net income $ 154 $ 80 $ 280 $ 136
Earnings per share:        
Basic (in dollars per share) $ 0.27 $ 0.14 $ 0.48 $ 0.24
Diluted (in dollars per share) $ 0.26 $ 0.13 $ 0.46 $ 0.23
Weighted-average shares used in computing earnings per share:        
Basic (in shares) 578 580 583 577
Diluted (in shares) 590 605 596 604
Subscription services        
Revenue:        
Total revenue $ 290 $ 227 $ 558 $ 436
Costs of revenue:        
Cost of revenue 64 64 124 130
Financial technology solutions        
Revenue:        
Total revenue 1,570 1,276 2,893 2,358
Costs of revenue:        
Cost of revenue 1,211 992 2,222 1,823
Hardware and professional services        
Revenue:        
Total revenue 48 47 87 93
Costs of revenue:        
Cost of revenue $ 116 $ 101 $ 227 $ 194
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Statement of Comprehensive Income [Abstract]        
Net income $ 154 $ 80 $ 280 $ 136
Other comprehensive income (loss):        
Unrealized gains (losses) on marketable securities, net of tax effect of $0 (1) 0 (3) 0
Currency translation adjustments 0 2 (1) 3
Total other comprehensive income (loss) (1) 2 (4) 3
Comprehensive income $ 153 $ 82 $ 276 $ 139
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Statement of Comprehensive Income [Abstract]        
Unrealized gains (losses) on marketable securities, net of tax $ 0 $ 0 $ 0 $ 0
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($)
$ in Millions
Total
Preferred Stock
Class A and B Common Stock
Additional Paid-in Capital
Accumulated Deficit
Accumulated Other Comprehensive Income (Loss)
Preferred stock balance, beginning of period (in shares) at Dec. 31, 2024   0        
Common stock balance, beginning of period (in shares) at Dec. 31, 2024     572,000,000      
Beginning balance at Dec. 31, 2024 $ 1,545 $ 0 $ 0 $ 3,150 $ (1,604) $ (1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock under equity plans (in shares)     10,000,000      
Issuance of common stock under equity plans 40     40    
Stock-based compensation 125     125    
Share repurchases (in shares)     (1,000,000)      
Share repurchases (31)     (31)    
Other comprehensive (loss) income, net of tax 3         3
Net income 136       136  
Common stock balance, ending of period (in shares) at Jun. 30, 2025     581,000,000      
Preferred stock balance, ending of period (in shares) at Jun. 30, 2025   0        
Ending balance at Jun. 30, 2025 1,818 $ 0 $ 0 3,284 (1,468) 2
Preferred stock balance, beginning of period (in shares) at Mar. 31, 2025   0        
Common stock balance, beginning of period (in shares) at Mar. 31, 2025     577,000,000      
Beginning balance at Mar. 31, 2025 1,673 $ 0 $ 0 3,221 (1,548) 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock under equity plans (in shares)     5,000,000      
Issuance of common stock under equity plans 14     14    
Stock-based compensation 63     63    
Share repurchases (in shares)     (1,000,000)      
Share repurchases (14)     (14)    
Other comprehensive (loss) income, net of tax 2         2
Net income 80       80  
Common stock balance, ending of period (in shares) at Jun. 30, 2025     581,000,000      
Preferred stock balance, ending of period (in shares) at Jun. 30, 2025   0        
Ending balance at Jun. 30, 2025 $ 1,818 $ 0 $ 0 3,284 (1,468) 2
Preferred stock balance, beginning of period (in shares) at Dec. 31, 2025 0 0        
Common stock balance, beginning of period (in shares) at Dec. 31, 2025     589,000,000      
Beginning balance at Dec. 31, 2025 $ 2,124 $ 0 $ 0 3,384 (1,262) 2
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock under equity plans (in shares)     7,000,000      
Issuance of common stock under equity plans 17     17    
Stock-based compensation 114     114    
Share repurchases (in shares)     (19,000,000)      
Share repurchases (486)     (486)    
Other comprehensive (loss) income, net of tax (4)         (4)
Net income $ 280       280  
Common stock balance, ending of period (in shares) at Jun. 30, 2026     577,000,000      
Preferred stock balance, ending of period (in shares) at Jun. 30, 2026 0 0        
Ending balance at Jun. 30, 2026 $ 2,045 $ 0 $ 0 3,029 (982) (2)
Preferred stock balance, beginning of period (in shares) at Mar. 31, 2026   0        
Common stock balance, beginning of period (in shares) at Mar. 31, 2026     580,000,000      
Beginning balance at Mar. 31, 2026 1,990 $ 0 $ 0 3,127 (1,136) (1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock under equity plans (in shares)     4,000,000      
Issuance of common stock under equity plans 3     3    
Stock-based compensation 58     58    
Share repurchases (in shares)     (7,000,000)      
Share repurchases (159)     (159)    
Other comprehensive (loss) income, net of tax (1)         (1)
Net income $ 154       154  
Common stock balance, ending of period (in shares) at Jun. 30, 2026     577,000,000      
Preferred stock balance, ending of period (in shares) at Jun. 30, 2026 0 0        
Ending balance at Jun. 30, 2026 $ 2,045 $ 0 $ 0 $ 3,029 $ (982) $ (2)
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Cash flows from operating activities:    
Net income $ 280 $ 136
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 22 35
Stock-based compensation expense 109 120
Amortization of deferred contract acquisition costs 46 48
Credit loss expense 54 40
Other non-cash items (6) 5
Changes in operating assets and liabilities:    
Accounts receivable, net (25) (16)
Other current assets (30) (10)
Deferred contract acquisition costs (93) (73)
Inventories, net (103) 15
Accounts payable (8) 13
Accrued expenses and other current liabilities 25 (3)
Deferred revenue 9 2
Other assets and liabilities (4) (10)
Net cash provided by operating activities 276 302
Cash flows from investing activities:    
Capital expenditures (31) (25)
Purchases of marketable securities (304) (281)
Proceeds from the sale of marketable securities 82 97
Maturities of marketable securities 161 193
Purchases of loans classified as held for investment (80) 0
Proceeds from repayments of loans classified as held for investment 30 0
Net cash (used in) investing activities (142) (16)
Cash flows from financing activities:    
Payment of issuance costs of the revolving credit facility 0 (3)
Change in customer funds obligations, net 57 45
Proceeds from issuance of common stock 17 40
Cash paid to repurchase Class A common stock (486) (31)
Net cash provided by (used in) financing activities (412) 51
Effect of exchange rate changes on cash, cash equivalents and restricted cash (1) 3
Net increase (decrease) in cash, cash equivalents, cash held on behalf of customers and restricted cash (279) 340
Cash, cash equivalents, cash held on behalf of customers and restricted cash at beginning of period 1,583 1,085
Cash, cash equivalents, cash held on behalf of customers and restricted cash at end of period 1,304 1,425
Reconciliation of cash, cash equivalents, cash held on behalf of customers and restricted cash    
Cash and cash equivalents 1,015 1,194
Cash held on behalf of customers 216 168
Restricted cash 73 63
Total cash, cash equivalents, cash held on behalf of customers and restricted cash $ 1,304 $ 1,425
v3.26.1
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2026
Accounting Policies [Abstract]  
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies
Toast, Inc. (“we,” or “the Company”), is a global technology platform built for restaurant and retail businesses. From the busiest local restaurants and shops to large hospitality brands, Toast helps owners and operators manage their businesses more efficiently, drive guest demand, and build lasting success. Toast integrates software, agentic AI, payments, financial technology solutions, and hardware with a broad partner ecosystem. Powering billions of purchases throughout local commerce, Toast delivers the precision and innovation required for modern restaurant and retail environments.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, and the rules and regulations of the Securities and Exchange Commission, or the SEC, regarding interim financial reporting.

The unaudited condensed consolidated financial statements include the Company’s accounts and the accounts of its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly our financial position, results of operations, comprehensive income (loss), stockholders’ equity, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be expected for the full year ending December 31, 2026 or any other future interim periods.

The accompanying unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the unaudited condensed consolidated financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2025, or the 2025 Annual Report. As of June 30, 2026, there have been no material changes in our significant accounting policies from those that were disclosed in the Annual Report on Form 10-K, unless otherwise discussed below.

Certain reclassifications of prior period amounts were made in the current year to conform to the current period presentation.These reclassifications had no impact on the previously reported results of operations or cash flows for the periods presented.
v3.26.1
Financial Instruments
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Financial Instruments Financial Instruments
The following table presents information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and indicates the level of the fair value hierarchy used to determine such fair values (in millions):

June 30, 2026
Level 1Level 2Level 3Total
Assets:
Money market funds$636 $— $— $636 
Commercial paper— 58 — 58 
Certificates of deposit— 35 — 35 
Corporate bonds— 291 — 291 
Treasury bonds— 188 — 188 
Asset-backed securities— 126 — 126 
$636 $698 $— $1,334 
Liabilities:
Warrants to purchase common stock$— $— $12 $12 
$— $— $12 $12 

December 31, 2025
Level 1Level 2Level 3Total
Assets:
Money market funds$951 $— $— $951 
Commercial paper— 96 — 96 
Certificates of deposit— 23 — 23 
Corporate bonds— 261 — 261 
U.S. government agency securities— 7 — 7 
Treasury bonds— 134 — 134 
Asset-backed securities— 142 — 142 
$951 $663 $— $1,614 
Liabilities:
Warrants to purchase common stock$— $— $19 $19 
$— $— $19 $19 

During the six months ended June 30, 2026 and 2025, there were no transfers into or out of Level 3 measurements within the fair value hierarchy.

The Company did not recognize any credit losses or non-credit-related impairments related to available-for-sale marketable debt securities for the six months ended June 30, 2026 and 2025. Unrealized losses were immaterial and recognized in other comprehensive income (loss).

Marketable Securities

The fair values of the marketable securities by contractual maturities at June 30, 2026 were as follows (in millions):

  June 30, 2026
Due within 1 year$402 
Due after 1 year through 5 years294 
Due after 5 years and thereafter2 
Total marketable securities$698 
Fair Value of Liabilities

The aggregate fair value of the common stock warrant liability, which is measured using Level 3 inputs, decreased from $19 million as of December 31, 2025 to $12 million as of June 30, 2026, resulting in a $7 million gain during the period.

As of June 30, 2026, the maximum number of shares of the Company’s common stock that could be required to be issued upon the exercise of outstanding warrants was 1 million.
v3.26.1
Loan Servicing Activities
 6 Months Ended
Jun. 30, 2026
Guarantees and Product Warranties [Abstract]  
Loan Servicing Activities Loan Servicing Activities
Changes in the contingent liability for expected credit losses for the three and six months ended June 30, 2026 and 2025 were as follows (in millions):

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Beginning balance$48 $33 $46 $29 
Credit loss expense18 11 35 27 
Reductions due to loan purchases(13)(11)(28)(23)
Ending balance$53 $33 $53 $33 

As of June 30, 2026 and December 31, 2025, the non-contingent stand-ready liability was $21 million and $18 million, respectively.

As of June 30, 2026 and December 31, 2025, $73 million and $71 million, respectively, were classified as restricted cash on the Condensed Consolidated Balance Sheets, representing cash held with commercial lending institutions. The restrictions are related to cash held as collateral pursuant to an agreement with the originating third-party bank for the working capital loans serviced by Toast Capital.
v3.26.1
Loans Held for Investment
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Loans Held for Investment Loans Held for Investment
The Company purchases loans from its bank partner that are not delinquent at acquisition and for which the Company has the intent and ability to hold for the foreseeable future, until maturity or payoff. These loans are classified as held for investment and are included in other current assets on the Condensed Consolidated Balance Sheets. They are carried at amortized cost, net of an allowance for expected credit losses, which reflects estimated lifetime losses based on historical experience, current conditions, and reasonable and supportable forecasts. The Company recognizes income, including the effect of any premium or discount, over the life of these loans using the effective interest method.

As of June 30, 2026, loans held for investment, net, were $46 million, with an immaterial allowance for expected credit losses and interest income, compared to $0 million of loans held for investment as of December 31, 2025.

The Company analyzes loans held for investment based on the aging of unpaid principal and the historical performance of vintage cohorts. These are the primary credit quality indicators in evaluating the allowance for expected credit losses and the delinquency status of the loan portfolio. As of June 30, 2026, there were no material delinquent loans.
v3.26.1
Other Balance Sheet Information
 6 Months Ended
Jun. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Other Balance Sheet Information Other Balance Sheet Information
Accounts Receivable, Net (in millions)

June 30, 2026December 31, 2025
Accounts receivable$111 $103 
Unbilled receivables41 33 
Less: Allowance for credit losses(10)(9)
Accounts receivable, net$142 $127 

Inventories, Net (in millions)

June 30, 2026December 31, 2025
Raw materials
$58 $— 
Finished goods
159 114 
Total inventories, net
$217 $114 


Other Current Assets (in millions)
June 30, 2026December 31, 2025
Cash held on behalf of customers$216 $159 
Deferred contract acquisition costs, current (Note 6)106 98 
Prepaid expenses49 39 
Other207 141 
Total other current assets$578 $437 

Accrued Expenses and Current Liabilities (in millions)

June 30, 2026December 31, 2025
Accrued transaction-based costs$422 $368 
Customer funds obligation216 159 
Accrued expenses98 74 
Accrued payroll and bonus111 133 
Contingent liability for expected credit losses53 46 
Other liabilities87 74 
Total accrued expenses and other current liabilities$987 $854 
v3.26.1
Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
The following table summarizes the activity in deferred revenue (in millions):

Six Months Ended June 30, 2026
Deferred revenue, beginning of period$69 
Deferred revenue, end of period$77 
Revenue recognized in the period from amounts included in deferred revenue at the beginning of period$58 

As of June 30, 2026, approximately $1,110 million of revenue is expected to be recognized from remaining performance obligations for customer contracts. The Company expects to recognize revenue of approximately $1,036 million from these remaining performance obligations over the next 24 months, with the balance recognized thereafter.

The following table summarizes the activity in deferred contract acquisition costs (in millions):

Six Months Ended June 30,
20262025
Beginning balance$220 $172 
Capitalization93 70 
Amortization(46)(48)
Ending balance$267 $194 
As of June 30, 2026, $106 million of deferred contract acquisition costs were recorded within other current assets with the remaining balance recorded within other non-current assets on the Condensed Consolidated Balance Sheet.
v3.26.1
Stockholders’ Equity
 6 Months Ended
Jun. 30, 2026
Equity [Abstract]  
Stockholders’ Equity Stockholders’ Equity
Stock-Based Compensation

Stock-based compensation expenses recognized for the three and six months ended June 30, 2026 and 2025, were as follows (in millions):

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Cost of revenue$6 $9 $13 $18 
Sales and marketing13 14 26 28 
Research and development22 21 43 41 
General and administrative14 16 27 30 
Restructuring expenses— — — 3 
Stock-based compensation expense
$55 $60 $109 $120 

Stock Options

The following is a summary of stock option activity under the Company’s stock option plans for the six months ended June 30, 2026:


Number of
Shares (in millions)
Weighted-
Average
Exercise
Price (per share)
Weighted-Average
Remaining
Contractual
Term (in years)
Aggregate
Intrinsic
Value (in millions)(1)
Outstanding as of December 31, 2025
21 $11.84 
Granted1 28.67 
Exercised(2)4.18 
Forfeited— 21.68 
Outstanding as of June 30, 2026
20 $14.25 
Options vested and expected to vest as of June 30, 2026
20 $13.78 5.2$288 
(1) The aggregate intrinsic value was determined as the difference between the closing price of the Class A common stock on the last trading day of June 2026, or the date of exercise, as appropriate, and the exercise price, multiplied by the number of in-the-money options that would have been received by the option holders had all option holders exercised their in-the-money options at period end.

The aggregate intrinsic value of options exercised was $16 million and $51 million, respectively, during the three and six months ended June 30, 2026.

As of June 30, 2026, total unrecognized stock-based compensation expense related to the options was $57 million and is expected to be recognized over the remaining weighted-average service period of 3.1 years.
Restricted Stock Units 

The following table summarizes restricted stock units, or RSUs, activity during the six months ended June 30, 2026:

Number of Shares
(in millions)
Weighted-Average Grant Date Fair Value (per share)
Outstanding balance as of December 31, 2025
15 $26.80 
Granted8 28.27 
Vested(4)22.64 
Forfeited(1)27.33 
Outstanding balance as of June 30, 2026
18 $28.36 
Expected to vest as of June 30, 2026
15 $28.03 

The fair value of RSUs vested during the three and six months ended June 30, 2026 was $52 million and $121 million, respectively.

As of June 30, 2026, total unrecognized stock-based compensation expense related to the RSUs was $360 million and is expected to be recognized over the remaining weighted-average service period of 3.0 years.

Share Repurchase Program

In February 2024, the Company announced the authorization of a share repurchase program for the repurchase of shares of Class A common stock, par value $0.000001 per share, in an aggregate amount of up to $250 million. On February 10, 2026, the Company’s board of directors approved an increase of $500 million to the previously authorized share repurchase program for the repurchase of shares of Class A common stock. The repurchase program has no expiration date, does not obligate the Company to acquire any particular amount of Class A common stock, and may be suspended at any time at the Company’s discretion. The timing and actual number of shares repurchased may depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities.

During the three and six months ended June 30, 2026, the Company repurchased $159 million and $486 million, respectively, of Class A common stock. As of June 30, 2026, approximately $100 million remained authorized for repurchase under the share repurchase program.
v3.26.1
Income Taxes
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company computes the provision for income taxes by applying the estimated annual effective tax rate to year-to-date income before income taxes, and adjusts for discrete items in the period in which they occur.

The income tax expense was $8 million and $3 million for the three months ended June 30, 2026 and 2025, respectively, and $13 million and $5 million for the six months ended June 30, 2026 and 2025, respectively. The effective tax rate for each period differs from the statutory rate primarily due to a full valuation allowance against the Company’s U.S. net deferred tax assets, U.S. state income taxes, and foreign rate differential on profitable foreign jurisdictions.

As of June 30, 2026, the Company maintained a full valuation allowance against the U.S. net deferred tax assets as the amounts were not more-likely-than-not realizable. This determination is based on management’s evaluation of all available positive and negative evidence, such as sustainability of recent profits and forecasts of future taxable income; a portion or all of the valuation allowance could be released in the next 12 months. The timing and amount of any such release remain uncertain.
v3.26.1
Earnings Per Share
 6 Months Ended
Jun. 30, 2026
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
Basic earnings per share is determined by dividing net income by the weighted-average shares outstanding for the period. The Company analyzes the potential dilutive effect of stock options, RSUs, the employee stock purchase plan, and warrants to purchase common stock, during periods the Company generates net income, or when income is recognized related to changes in fair value of warrant liabilities.

Class A common stock and Class B common stock share proportionately, on a per share basis, in the Company’s net income and participate equally in the dividends on common stock, if declared. The Company allocates net income attributable to common stock between the common stock classes on a one-to-one basis when computing earnings per share. As a result, basic and diluted earnings per share of Class A common stock and Class B common stock are equivalent.

The following table sets forth the calculation of earnings per share (in millions, except per share amounts):

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Numerator:
Net income, basic$154 $80 $280 $136 
Less: Gain on change in fair value of warrant liabilities(1)
— — 7 — 
Net income, diluted$154 $80 $273 $136 
Denominator:
Weighted-average shares of common stock outstanding - basic578 580 583 577 
Effect of dilutive securities:
Warrants to purchase common stock(1)
— — — — 
Dilutive common share equivalents included in dilutive shares12 25 13 27 
Weighted-average shares of common stock outstanding - diluted590 605 596 604 
Earnings per share, basic
$0.27 $0.14 $0.48 $0.24 
Earnings per share, diluted
$0.26 $0.13 $0.46 $0.23 
(1) During the six months ended June 30, 2026, the Company recorded a remeasurement gain of $7 million of the Company’s warrant liability, which was excluded from the net income to adjust for the dilutive impact of the warrants. The Company adjusted the weighted-average shares outstanding for the incremental dilutive shares using the treasury stock method.

The following potential shares of common stock were excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive for the periods presented (in millions):

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Options to purchase common stock
5 2 5 1 
Unvested restricted stock units10 — 7 1 
Warrants to purchase common stock
1 1 — 1 
Total
16 3 12 3 
v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company has one reportable segment, Toast, Inc. The following table sets out the Company’s measure of profit and significant segment expenses (in millions):

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Revenue$1,908 $1,550 $3,538 $2,887 
Costs of revenue(1)
(1,385)(1,148)(2,561)(2,128)
Sales and marketing(1)
(152)(126)(294)(243)
Research and development(1)
(86)(69)(160)(131)
General and administrative(1)
(75)(62)(145)(126)
Stock-based compensation and related payroll taxes(58)(64)(116)(128)
Other items(2)
2 (1)18 5 
Net income
$154 $80 $280 $136 
(1) These expenses exclude stock-based compensation and related payroll taxes. Stock-based compensation and related payroll taxes are presented separately as an additional significant segment expense, which consist of both stock-based compensation (refer to Note 7, “Stockholders’ Equity” for tabular disclosure of amounts included within other significant segment expenses) and the corresponding payroll taxes.
(2) Other items include restructuring expenses, interest income, net, change in fair value of warrant liability, and income tax (expense) benefit.
v3.26.1
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2026
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Purchase Commitments

As of June 30, 2026, the Company’s non-cancellable purchase obligations to hardware suppliers totaled $194 million, all of which is due within the next 12 months.

As of June 30, 2026, the Company’s non-cancellable contractual commitments with cloud service providers and other vendors totaled $110 million of which $83 million is due within the next 12 months and $27 million thereafter.

Legal Proceedings

The Company has been cooperating with the Federal Trade Commission (the “FTC”) staff in response to a Civil Investigative Demand received in June 2025, seeking information regarding the marketing, sale, and operation of its restaurant operating systems and related customer-service offerings relative to the Federal Trade Commission Act, the Gramm-Leach-Bliley Act, and the Restore Online Shoppers’ Confidence Act. In June 2026, the FTC staff sent the Company a draft complaint and proposed settlement order. The Company strongly disagrees with the FTC’s legal challenges to its practices, policies and procedures, including whether certain referenced laws apply to its type of business. The Company has been engaged in ongoing discussions with the FTC. The Company will vigorously defend its interests and is prepared to litigate, if necessary. There can be no assurance that the Company will be successful in negotiating a favorable settlement or prevailing in litigation. The defense or resolution of this matter, including any significant costs, penalties, remedies, and/or compliance requirements, could have a materially adverse impact on the Company’s financial results and/or operations. At this stage, the Company is unable to estimate a reasonably possible financial loss or range of any potential financial loss, if any, as a result of this investigation.

In addition, from time to time, the Company may be involved in legal actions arising in the ordinary course of business. Each of these matters is subject to various uncertainties, and it is possible that some of these matters may be resolved unfavorably. The Company establishes accruals for losses that management deems to be probable and subject to reasonable estimates. The Company does not expect any of these claims with a reasonably possible adverse outcome to have a material impact, and, accordingly, has not accrued for any material claims.
v3.26.1
Subsequent Events
 6 Months Ended
Jun. 30, 2026
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events [Placeholder]
v3.26.1
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 2026
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.26.1
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2026
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, and the rules and regulations of the Securities and Exchange Commission, or the SEC, regarding interim financial reporting.

The unaudited condensed consolidated financial statements include the Company’s accounts and the accounts of its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly our financial position, results of operations, comprehensive income (loss), stockholders’ equity, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be expected for the full year ending December 31, 2026 or any other future interim periods.

The accompanying unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the unaudited condensed consolidated financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2025, or the 2025 Annual Report. As of June 30, 2026, there have been no material changes in our significant accounting policies from those that were disclosed in the Annual Report on Form 10-K, unless otherwise discussed below.
Reclassification
Certain reclassifications of prior period amounts were made in the current year to conform to the current period presentation.These reclassifications had no impact on the previously reported results of operations or cash flows for the periods presented.
v3.26.1
Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured on Recurring Basis
The following table presents information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and indicates the level of the fair value hierarchy used to determine such fair values (in millions):

June 30, 2026
Level 1Level 2Level 3Total
Assets:
Money market funds$636 $— $— $636 
Commercial paper— 58 — 58 
Certificates of deposit— 35 — 35 
Corporate bonds— 291 — 291 
Treasury bonds— 188 — 188 
Asset-backed securities— 126 — 126 
$636 $698 $— $1,334 
Liabilities:
Warrants to purchase common stock$— $— $12 $12 
$— $— $12 $12 

December 31, 2025
Level 1Level 2Level 3Total
Assets:
Money market funds$951 $— $— $951 
Commercial paper— 96 — 96 
Certificates of deposit— 23 — 23 
Corporate bonds— 261 — 261 
U.S. government agency securities— 7 — 7 
Treasury bonds— 134 — 134 
Asset-backed securities— 142 — 142 
$951 $663 $— $1,614 
Liabilities:
Warrants to purchase common stock$— $— $19 $19 
$— $— $19 $19 
Schedule of Marketable Securities
The fair values of the marketable securities by contractual maturities at June 30, 2026 were as follows (in millions):

  June 30, 2026
Due within 1 year$402 
Due after 1 year through 5 years294 
Due after 5 years and thereafter2 
Total marketable securities$698 
v3.26.1
Loan Servicing Activities (Tables)
 6 Months Ended
Jun. 30, 2026
Guarantees and Product Warranties [Abstract]  
Schedule of Off-Balance Sheet Credit Loss Liability
Changes in the contingent liability for expected credit losses for the three and six months ended June 30, 2026 and 2025 were as follows (in millions):

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Beginning balance$48 $33 $46 $29 
Credit loss expense18 11 35 27 
Reductions due to loan purchases(13)(11)(28)(23)
Ending balance$53 $33 $53 $33 
v3.26.1
Other Balance Sheet Information (Tables)
 6 Months Ended
Jun. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Accounts Receivable, net
Accounts Receivable, Net (in millions)

June 30, 2026December 31, 2025
Accounts receivable$111 $103 
Unbilled receivables41 33 
Less: Allowance for credit losses(10)(9)
Accounts receivable, net$142 $127 
Schedule of Inventory
Inventories, Net (in millions)

June 30, 2026December 31, 2025
Raw materials
$58 $— 
Finished goods
159 114 
Total inventories, net
$217 $114 
Schedule of Other Current Assets
Other Current Assets (in millions)
June 30, 2026December 31, 2025
Cash held on behalf of customers$216 $159 
Deferred contract acquisition costs, current (Note 6)106 98 
Prepaid expenses49 39 
Other207 141 
Total other current assets$578 $437 
Schedule of Accrued Expenses and Other Current Liabilities
Accrued Expenses and Current Liabilities (in millions)

June 30, 2026December 31, 2025
Accrued transaction-based costs$422 $368 
Customer funds obligation216 159 
Accrued expenses98 74 
Accrued payroll and bonus111 133 
Contingent liability for expected credit losses53 46 
Other liabilities87 74 
Total accrued expenses and other current liabilities$987 $854 
v3.26.1
Revenue from Contracts with Customers (Tables)
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Schedule of Contract Asset Contract Liability and Receivable
The following table summarizes the activity in deferred revenue (in millions):

Six Months Ended June 30, 2026
Deferred revenue, beginning of period$69 
Deferred revenue, end of period$77 
Revenue recognized in the period from amounts included in deferred revenue at the beginning of period$58 
Schedule of Capitalized Contract Cost
The following table summarizes the activity in deferred contract acquisition costs (in millions):

Six Months Ended June 30,
20262025
Beginning balance$220 $172 
Capitalization93 70 
Amortization(46)(48)
Ending balance$267 $194 
v3.26.1
Stockholders’ Equity (Tables)
 6 Months Ended
Jun. 30, 2026
Equity [Abstract]  
Schedule of Share-based Compensation Expense
Stock-based compensation expenses recognized for the three and six months ended June 30, 2026 and 2025, were as follows (in millions):

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Cost of revenue$6 $9 $13 $18 
Sales and marketing13 14 26 28 
Research and development22 21 43 41 
General and administrative14 16 27 30 
Restructuring expenses— — — 3 
Stock-based compensation expense
$55 $60 $109 $120 
Schedule of Stock Option Activity
The following is a summary of stock option activity under the Company’s stock option plans for the six months ended June 30, 2026:


Number of
Shares (in millions)
Weighted-
Average
Exercise
Price (per share)
Weighted-Average
Remaining
Contractual
Term (in years)
Aggregate
Intrinsic
Value (in millions)(1)
Outstanding as of December 31, 2025
21 $11.84 
Granted1 28.67 
Exercised(2)4.18 
Forfeited— 21.68 
Outstanding as of June 30, 2026
20 $14.25 
Options vested and expected to vest as of June 30, 2026
20 $13.78 5.2$288 
(1) The aggregate intrinsic value was determined as the difference between the closing price of the Class A common stock on the last trading day of June 2026, or the date of exercise, as appropriate, and the exercise price, multiplied by the number of in-the-money options that would have been received by the option holders had all option holders exercised their in-the-money options at period end.
Schedule of Restricted Stock Unit Activity
The following table summarizes restricted stock units, or RSUs, activity during the six months ended June 30, 2026:

Number of Shares
(in millions)
Weighted-Average Grant Date Fair Value (per share)
Outstanding balance as of December 31, 2025
15 $26.80 
Granted8 28.27 
Vested(4)22.64 
Forfeited(1)27.33 
Outstanding balance as of June 30, 2026
18 $28.36 
Expected to vest as of June 30, 2026
15 $28.03 
v3.26.1
Earnings Per Share (Tables)
 6 Months Ended
Jun. 30, 2026
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share
The following table sets forth the calculation of earnings per share (in millions, except per share amounts):

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Numerator:
Net income, basic$154 $80 $280 $136 
Less: Gain on change in fair value of warrant liabilities(1)
— — 7 — 
Net income, diluted$154 $80 $273 $136 
Denominator:
Weighted-average shares of common stock outstanding - basic578 580 583 577 
Effect of dilutive securities:
Warrants to purchase common stock(1)
— — — — 
Dilutive common share equivalents included in dilutive shares12 25 13 27 
Weighted-average shares of common stock outstanding - diluted590 605 596 604 
Earnings per share, basic
$0.27 $0.14 $0.48 $0.24 
Earnings per share, diluted
$0.26 $0.13 $0.46 $0.23 
(1) During the six months ended June 30, 2026, the Company recorded a remeasurement gain of $7 million of the Company’s warrant liability, which was excluded from the net income to adjust for the dilutive impact of the warrants. The Company adjusted the weighted-average shares outstanding for the incremental dilutive shares using the treasury stock method.
Schedule of Antidilutive Securities Excluded from Computation of Earnings or Loss Per Share
The following potential shares of common stock were excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive for the periods presented (in millions):

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Options to purchase common stock
5 2 5 1 
Unvested restricted stock units10 — 7 1 
Warrants to purchase common stock
1 1 — 1 
Total
16 3 12 3 
v3.26.1
Segment Information (Tables)
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment The following table sets out the Company’s measure of profit and significant segment expenses (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Revenue$1,908 $1,550 $3,538 $2,887 
Costs of revenue(1)
(1,385)(1,148)(2,561)(2,128)
Sales and marketing(1)
(152)(126)(294)(243)
Research and development(1)
(86)(69)(160)(131)
General and administrative(1)
(75)(62)(145)(126)
Stock-based compensation and related payroll taxes(58)(64)(116)(128)
Other items(2)
2 (1)18 5 
Net income
$154 $80 $280 $136 
(1) These expenses exclude stock-based compensation and related payroll taxes. Stock-based compensation and related payroll taxes are presented separately as an additional significant segment expense, which consist of both stock-based compensation (refer to Note 7, “Stockholders’ Equity” for tabular disclosure of amounts included within other significant segment expenses) and the corresponding payroll taxes.
(2) Other items include restructuring expenses, interest income, net, change in fair value of warrant liability, and income tax (expense) benefit.
v3.26.1
Financial Instruments - Schedule of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)
$ in Millions
Jun. 30, 2026
Dec. 31, 2025
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets $ 698  
Total assets 1,334 $ 1,614
Warrants to purchase common stock 12 19
Total liabilities 12 19
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 636 951
Warrants to purchase common stock 0 0
Total liabilities 0 0
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 698 663
Warrants to purchase common stock 0 0
Total liabilities 0 0
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 0 0
Warrants to purchase common stock 12 19
Total liabilities 12 19
Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 636 951
Money market funds | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 636 951
Money market funds | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Money market funds | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 58 96
Commercial paper | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Commercial paper | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 58 96
Commercial paper | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Certificates of deposit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 35 23
Certificates of deposit | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Certificates of deposit | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 35 23
Certificates of deposit | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Corporate bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 291 261
Corporate bonds | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Corporate bonds | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 291 261
Corporate bonds | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
U.S. government agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets   7
U.S. government agency securities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets   0
U.S. government agency securities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets   7
U.S. government agency securities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets   0
Treasury bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 188 134
Treasury bonds | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Treasury bonds | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 188 134
Treasury bonds | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 126 142
Asset-backed securities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Asset-backed securities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 126 142
Asset-backed securities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets $ 0 $ 0
v3.26.1
Financial Instruments - Scheduled Maturities of Marketable Securities (Details)
$ in Millions
Jun. 30, 2026
USD ($)
Fair Value Disclosures [Abstract]  
Due within 1 year $ 402
Due after 1 year through 5 years 294
Due after 5 years and thereafter 2
Total marketable securities $ 698
v3.26.1
Financial Instruments - Narrative (Details) - Common Stock Warrants - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2026
Dec. 31, 2025
Warrants to purchase common stock    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Warrants fair value $ 12 $ 19
Gain included in earnings $ 7  
Class A and B Common Stock    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Maximum number of shares that could be issued (in shares) 1,000,000  
v3.26.1
Loan Servicing Activities - Schedule of Rollforward of Credit Losses (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Off-Balance Sheet, Credit Loss, Liability [Roll Forward]        
Beginning balance $ 48 $ 33 $ 46 $ 29
Credit loss expense 18 11 35 27
Reductions due to loan purchases (13) (11) (28) (23)
Ending balance $ 53 $ 33 $ 53 $ 33
v3.26.1
Loan Servicing Activities - Narrative (Details) - USD ($)
$ in Millions
Jun. 30, 2026
Dec. 31, 2025
Jun. 30, 2025
Guarantor Obligations [Line Items]      
Restricted cash $ 73 $ 71 $ 63
Non-contingent stand-ready liability      
Guarantor Obligations [Line Items]      
Guarantee liability $ 21 $ 18  
v3.26.1
Loans Held for Investment (Details) - USD ($)
$ in Millions
Jun. 30, 2026
Dec. 31, 2025
Receivables [Abstract]    
Loans held for investment, net $ 46 $ 0
v3.26.1
Other Balance Sheet Information - Schedule of Accounts Receivable, net (Details) - USD ($)
$ in Millions
Jun. 30, 2026
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accounts receivable $ 111 $ 103
Unbilled receivables 41 33
Less: Allowance for credit losses (10) (9)
Accounts receivable, net $ 142 $ 127
v3.26.1
Other Balance Sheet Information - Schedule of Inventory (Details) - USD ($)
$ in Millions
Jun. 30, 2026
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Raw materials $ 58 $ 0
Finished goods 159 114
Total inventories, net $ 217 $ 114
v3.26.1
Other Balance Sheet Information - Schedule of Other Current Assets (Details) - USD ($)
$ in Millions
Jun. 30, 2026
Dec. 31, 2025
Jun. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Cash held on behalf of customers $ 216 $ 159 $ 168
Deferred contract acquisition costs, current (Note 6) 106 98  
Prepaid expenses 49 39  
Other 207 141  
Total other current assets $ 578 $ 437  
v3.26.1
Other Balance Sheet Information - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($)
$ in Millions
Jun. 30, 2026
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accrued transaction-based costs $ 422 $ 368
Customer funds obligation 216 159
Accrued expenses 98 74
Accrued payroll and bonus 111 133
Contingent liability for expected credit losses 53 46
Other liabilities 87 74
Total accrued expenses and other current liabilities $ 987 $ 854
v3.26.1
Revenue from Contracts with Customers - Schedule of Activity of Deferred Revenue (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2026
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]    
Deferred revenue $ 77 $ 69
Revenue recognized in the period from amounts included in deferred revenue at the beginning of period $ 58  
v3.26.1
Revenue from Contracts with Customers - Narrative (Details) - USD ($)
$ in Millions
Jun. 30, 2026
Dec. 31, 2025
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Remaining performance obligation, amount $ 1,110  
Deferred contract acquisition costs 106 $ 98
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-07-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Remaining performance obligation, amount $ 1,036  
Remaining performance obligation, period (in months) 24 months  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-07-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Remaining performance obligation, period (in months)  
v3.26.1
Revenue from Contracts with Customers - Schedule of Capitalized Costs (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Increase (Decrease) in Capitalized Contract Costs [Roll Forward]    
Beginning balance $ 220 $ 172
Capitalization 93 70
Amortization (46) (48)
Ending balance $ 267 $ 194
v3.26.1
Stockholders’ Equity - Schedule of Stock-based Compensation (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock-based compensation expense $ 55 $ 60 $ 109 $ 120
Income Statement Location [Axis]: us-gaap:CostOfGoodsAndServicesSold        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock-based compensation expense 6 9 13 18
Income Statement Location [Axis]: us-gaap:GeneralAndAdministrativeExpense        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock-based compensation expense 14 16 27 30
Income Statement Location [Axis]: us-gaap:ResearchAndDevelopmentExpense        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock-based compensation expense 22 21 43 41
Income Statement Location [Axis]: us-gaap:RestructuringCosts        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock-based compensation expense 0 0 0 3
Income Statement Location [Axis]: us-gaap:SellingAndMarketingExpense        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock-based compensation expense $ 13 $ 14 $ 26 $ 28
v3.26.1
Stockholders’ Equity - Narrative (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Feb. 10, 2026
Dec. 31, 2025
Feb. 29, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Aggregate intrinsic value of options exercised $ 16,000,000   $ 51,000,000        
Unrecognized stock-based compensation expense related to options 57,000,000   $ 57,000,000        
Expected period for recognition (in years)     3 years 1 month 6 days        
Stock repurchase program, stock repurchased during period $ 159,000,000 $ 14,000,000 $ 486,000,000 $ 31,000,000      
Common Class A              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Common stock, par value (in dollars per share) $ 0.000001   $ 0.000001     $ 0.000001 $ 0.000001
Stock repurchase program, authorized amount             $ 250,000,000
Increase in authorized share repurchase program amount         $ 500,000,000    
Stock repurchase program, stock repurchased during period $ 159,000,000   $ 486,000,000        
Stock repurchase program, remaining authorized repurchase amount 100,000,000   $ 100,000,000        
Restricted Stock Units (RSUs)              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Expected period for recognition (in years)     3 years        
Fair value of RSUs vested 52,000,000   $ 121,000,000        
Total unrecognized stock-based compensation expense related to RSUs $ 360,000,000   $ 360,000,000        
v3.26.1
Stockholders’ Equity - Schedule of Stock Option Activity (Details)
$ / shares in Units, shares in Millions, $ in Millions
 6 Months Ended
Jun. 30, 2026
USD ($)
$ / shares
shares
Number of Shares  
Beginning balance (in shares) | shares 21
Granted (in shares) | shares 1
Exercised (in shares) | shares (2)
Forfeited (in shares) | shares 0
Ending balance (in shares) | shares 20
Options vested and expected to vest (in shares) | shares 20
Weighted- Average Exercise Price  
Beginning balance (in dollars per share) | $ / shares $ 11.84
Granted (in dollars per share) | $ / shares 28.67
Exercised (in dollars per share) | $ / shares 4.18
Forfeited (in dollars per share) | $ / shares 21.68
Ending balance (in dollars per share) | $ / shares 14.25
Options vested and expected to vest, Weighted average exercise price (in dollars per share) | $ / shares $ 13.78
Weighted-Average Remaining Contractual Term  
Options vested and expected to vest (in years) 5 years 2 months 12 days
Aggregate Intrinsic Value  
Options vested and expected to vest | $ $ 288
v3.26.1
Stockholders’ Equity - Schedule of RSU Activity (Details) - Restricted Stock Units
shares in Millions
 6 Months Ended
Jun. 30, 2026
$ / shares
shares
Number of Shares  
Beginning balance (in shares) | shares 15
Granted (in shares) | shares 8
Vested (in shares) | shares (4)
Forfeited (in shares) | shares (1)
Ending balance (in shares) | shares 18
Expected to vest (in shares) | shares 15
Weighted-Average Grant Date Fair Value  
Beginning balance (in dollars per share) | $ / shares $ 26.80
Granted (in dollars per share) | $ / shares 28.27
Vested (in dollars per share) | $ / shares 22.64
Forfeited (in dollars per share) | $ / shares 27.33
Ending balance (in dollars per share) | $ / shares 28.36
Expected to vest ( in dollars per share) | $ / shares $ 28.03
v3.26.1
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Income Tax Disclosure [Abstract]        
Income tax expense $ 8 $ 3 $ 13 $ 5
v3.26.1
Earnings Per Share - Narrative (Details)
Jun. 30, 2026
Earnings Per Share [Abstract]  
Common stock, conversion ratio 1
v3.26.1
Earnings Per Share - Schedule of Net Income (Loss) Per Share Attributable to Common Stockholders (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Numerator:        
Net income, basic $ 154 $ 80 $ 280 $ 136
Less: Gain on change in fair value of warrant liabilities 0 0 7 0
Net income, diluted $ 154 $ 80 $ 273 $ 136
Denominator:        
Weighted-average shares of common stock outstanding—basic (in shares) 578 580 583 577
Effect of dilutive securities:        
Warrants to purchase common stock (in shares) 0 0 0 0
Dilutive common share equivalents included in dilutive shares (in shares) 12 25 13 27
Weighted-average shares of common stock outstanding - diluted (in shares) 590 605 596 604
Earnings per share, basic (in dollars per share) $ 0.27 $ 0.14 $ 0.48 $ 0.24
Earnings per share, diluted (in dollars per share) $ 0.26 $ 0.13 $ 0.46 $ 0.23
v3.26.1
Earnings Per Share - Schedule of Antidilutive Shares (Details) - shares
shares in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Total 16 3 12 3
Options to purchase common stock        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Total 5 2 5 1
Unvested restricted stock units        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Total 10 0 7 1
Warrants to purchase common stock        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Total 1 1 0 1
v3.26.1
Segment Information - Narrative (Details)
 6 Months Ended
Jun. 30, 2026
segment
Segment Reporting [Abstract]  
Number of reportable segment 1
v3.26.1
Segment Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Segment Reporting [Line Items]        
Revenue $ 1,908 $ 1,550 $ 3,538 $ 2,887
Costs of revenue (1,392) (1,158) (2,575) (2,149)
Sales and marketing (166) (141) (322) (274)
Research and development (109) (91) (206) (175)
General and administrative (89) (79) (173) (158)
Net income 154 80 280 136
Reportable Segment        
Segment Reporting [Line Items]        
Revenue 1,908 1,550 3,538 2,887
Costs of revenue (1,385) (1,148) (2,561) (2,128)
Sales and marketing (152) (126) (294) (243)
Research and development (86) (69) (160) (131)
General and administrative (75) (62) (145) (126)
Stock-based compensation and related payroll taxes (58) (64) (116) (128)
Other items 2 (1) 18 5
Net income $ 154 $ 80 $ 280 $ 136
v3.26.1
Commitment and Contingencies (Details)
$ in Millions
Jun. 30, 2026
USD ($)
Hardware Suppliers  
Unrecorded Unconditional Purchase Obligation [Line Items]  
Purchase commitment/contractual commitments $ 194
Cloud Service Providers And Other Vendors  
Unrecorded Unconditional Purchase Obligation [Line Items]  
Purchase commitment/contractual commitments 110
2026 83
Thereafter $ 27