TOAST, INC., 10-K filed on 2/18/2026
Annual Report
v3.25.4
Cover Page - USD ($)
shares in Millions, $ in Billions
 12 Months Ended
Dec. 31, 2025
Feb. 12, 2026
Jun. 30, 2025
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Current Fiscal Year End Date --12-31    
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 Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
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    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction false    
Entity Shell Company false    
Entity Public Float     $ 23
Documents Incorporated by Reference
Portions of the registrant’s Definitive Proxy Statement relating to the 2026 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2025.
    
Entity Central Index Key 0001650164    
Amendment Flag false    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Common Class A      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding (in shares)   524  
Common Class B      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding (in shares)   65  
v3.25.4
Audit Information
 12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Name Ernst & Young LLP
Auditor Location Boston, Massachusetts
Auditor Firm ID 42
v3.25.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Current Assets:    
Cash and cash equivalents $ 1,353 $ 903
Marketable securities 638 514
Accounts receivable, net 127 115
Inventories, net 114 118
Other current assets 437 325
Total current assets 2,669 1,975
Property and equipment, net 105 98
Operating lease right-of-use assets 27 25
Intangible assets, net 14 20
Goodwill 113 113
Restricted cash 71 59
Other non-current assets 146 118
Total non-current assets 476 433
Total assets 3,145 2,408
Current liabilities:    
Accounts payable 47 37
Deferred revenue 68 59
Accrued expenses and other current liabilities 854 715
Total current liabilities 969 811
Warrants to purchase common stock 19 22
Operating lease liabilities, non-current 20 24
Other long-term liabilities 13 6
Total liabilities 1,021 863
Commitments & Contingencies (Note 15)
Stockholders’ Equity:    
Preferred Stock - par value $0.000001; 100 million shares authorized, no shares issued or outstanding 0 0
Common stock, $0.000001 par value: Class A - 7,000 million shares authorized; 523 million and 491 million issued and outstanding as of December 31, 2025 and 2024, respectively; Class B - 700 million shares authorized; 66 million and 81 million issued and outstanding as of December 31, 2025 and 2024, respectively 0 0
Accumulated other comprehensive income (loss) 2 (1)
Additional paid-in capital 3,384 3,150
Accumulated deficit (1,262) (1,604)
Total stockholders’ equity 2,124 1,545
Total liabilities and stockholders’ equity $ 3,145 $ 2,408
v3.25.4
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Dec. 31, 2025
Dec. 31, 2024
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
Common Class A    
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) 523,000,000 491,000,000
Common stock, outstanding (in shares) 523,000,000 491,000,000
Common Class B    
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) 66,000,000 81,000,000
Common stock, outstanding (in shares) 66,000,000 81,000,000
v3.25.4
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue:      
Total revenue $ 6,153 $ 4,960 $ 3,865
Costs of revenue:      
Amortization of acquired intangible assets 5 5 5
Total costs of revenue 4,560 3,770 3,031
Gross profit 1,593 1,190 834
Operating expenses:      
Sales and marketing 571 470 401
Research and development 374 351 358
General and administrative 344 307 362
Restructuring expenses 12 46 0
Total operating expenses 1,301 1,174 1,121
Income (loss) from operations 292 16 (287)
Other income (expenses):      
Interest income, net 51 42 37
Change in fair value of warrant liability 3 (49) 3
Other income, net 0 13 3
Income (loss) before income taxes 346 22 (244)
Income tax (expense) benefit (4) (3) (2)
Net income (loss) $ 342 $ 19 $ (246)
Net income (loss) per share attributable to common stockholders:      
Basic (in dollars per share) $ 0.59 $ 0.03 $ (0.46)
Diluted (in dollars per share) $ 0.56 $ 0.03 $ (0.47)
Weighted-average shares used in computing net income (loss) per share:      
Basic (in shares) 582 559 532
Diluted (in shares) 607 591 533
Subscription services      
Revenue:      
Total revenue $ 936 $ 706 $ 500
Costs of revenue:      
Cost of revenue 264 219 166
Financial technology solutions      
Revenue:      
Total revenue 5,037 4,053 3,189
Costs of revenue:      
Cost of revenue 3,891 3,175 2,503
Hardware and professional services      
Revenue:      
Total revenue 180 201 176
Costs of revenue:      
Cost of revenue $ 400 $ 371 $ 357
v3.25.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ 342 $ 19 $ (246)
Other comprehensive income (loss):      
Unrealized gains (losses) on marketable securities, net of tax effect of $0 0 1 2
Currency translation adjustments 3 (2) 0
Total other comprehensive income (loss) 3 (1) 2
Comprehensive income (loss) $ 345 $ 18 $ (244)
v3.25.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Unrealized gains (losses) on marketable securities, net of tax $ 0 $ 0 $ 0
v3.25.4
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, 2022   0        
Common stock balance, beginning of period (in shares) at Dec. 31, 2022     523,000,000      
Beginning balance at Dec. 31, 2022 $ 1,098 $ 0 $ 0 $ 2,477 $ (1,377) $ (2)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock under equity plans (in shares)     19,000,000      
Issuance of common stock under equity plans 38     38    
Issuance of common stock upon net exercise of common stock warrants 1     1    
Stock-based compensation 290     290    
Issuance of common stock in connection with business combination 1     1    
Issuance of common stock in connection with charitable contribution (in shares)     1,000,000      
Issuance of common stock in connection with charitable contribution 10     10    
Other comprehensive (loss) income, net of tax 2         2
Net income (loss) (246)       (246)  
Common stock balance, ending of period (in shares) at Dec. 31, 2023     543,000,000      
Preferred stock balance, ending of period (in shares) at Dec. 31, 2023   0        
Ending balance at Dec. 31, 2023 1,194 $ 0 $ 0 2,817 (1,623) 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock under equity plans (in shares)     30,000,000      
Issuance of common stock under equity plans 100     100    
Issuance of common stock upon net exercise of common stock warrants (in shares)     1,000,000      
Issuance of common stock upon net exercise of common stock warrants 17     17    
Stock-based compensation 267     267    
Share repurchases (in shares)     (2,000,000)      
Share repurchases (56)     (56)    
Issuance of common stock in connection with charitable contribution 5     5    
Other comprehensive (loss) income, net of tax (1)         (1)
Net income (loss) $ 19       19  
Common stock balance, ending of period (in shares) at Dec. 31, 2024     572,000,000      
Preferred stock balance, ending of period (in shares) at Dec. 31, 2024 0 0        
Ending 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)     20,000,000      
Issuance of common stock under equity plans $ 81     81    
Issuance of common stock upon net exercise of common stock warrants (in shares) 8,000,000          
Stock-based compensation $ 254     254    
Share repurchases (in shares)     (3,000,000)      
Share repurchases (107)     (107)    
Issuance of common stock in connection with charitable contribution 6     6    
Other comprehensive (loss) income, net of tax 3         3
Net income (loss) $ 342       342  
Common stock balance, ending of period (in shares) at Dec. 31, 2025     589,000,000      
Preferred stock balance, ending of period (in shares) at Dec. 31, 2025 0 0        
Ending balance at Dec. 31, 2025 $ 2,124 $ 0 $ 0 $ 3,384 $ (1,262) $ 2
v3.25.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities:      
Net income (loss) $ 342 $ 19 $ (246)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Depreciation and amortization 64 46 32
Stock-based compensation expense 242 253 277
Amortization of deferred contract acquisition costs 99 82 62
Change in fair value of warrant liability (3) 49 (3)
Credit loss expense 91 70 64
Stock-based charitable contribution expense 6 5 10
Asset impairments 3 5 15
Gain on warrant extinguishment 0 (14) 0
Other non-cash items 8 (7) (17)
Changes in operating assets and liabilities:      
Accounts receivable, net (33) (72) (3)
Other current assets (52) (15) (12)
Deferred contract acquisition costs (147) (130) (107)
Inventories, net 4 0 (7)
Accounts payable 11 5 1
Accrued expenses and other current liabilities 21 48 81
Deferred revenue 6 23 (5)
Operating lease right-of-use assets and operating lease liabilities, net (6) (4) 1
Other assets and liabilities 5 (3) (8)
Net cash provided by operating activities 661 360 135
Cash flows from investing activities:      
Cash paid for acquisition, net of cash acquired 0 0 (9)
Capital expenditures (53) (54) (42)
Purchases of marketable securities (633) (473) (623)
Proceeds from the sale of marketable securities 178 126 35
Maturities of marketable securities 336 362 556
Other investing activities 0 0 (3)
Net cash (used in) investing activities (172) (39) (86)
Cash flows from financing activities:      
Payments of issuance costs of the revolving credit facility (3) 0 0
Proceeds from issuance of common stock 81 99 36
Change in customer funds obligations, net 36 36 27
Warrant repurchase 0 (61) 0
Repurchases of Class A common stock (107) (56) 0
Net cash provided by financing activities 7 18 63
Effect of exchange rate changes on cash and cash equivalents and restricted cash 2 (1) 0
Net increase in cash, cash equivalents, cash held on behalf of customers and restricted cash 498 338 112
Cash, cash equivalents, cash held on behalf of customers and restricted cash at beginning of period 1,085 747 635
Cash, cash equivalents, cash held on behalf of customers and restricted cash at end of period 1,583 1,085 747
Reconciliation of cash, cash equivalents, cash held on behalf of customers and restricted cash      
Cash and cash equivalents 1,353 903 605
Cash held on behalf of customers 159 123 87
Restricted cash 71 59 55
Total cash, cash equivalents, cash held on behalf of customers and restricted cash 1,583 1,085 747
Supplemental disclosure of non-cash investing and financing activities:      
Stock-based compensation included in capitalized software 12 14 13
Cash paid for amounts included in the measurement of lease liabilities 15 14 14
Right-of-use assets obtained in exchange for new operating lease liabilities / (reduction) of lease liabilities from lease terminations and modifications 10 1 (40)
Issuance of common stock upon exercise of common stock warrants $ 0 $ 17 $ 1
v3.25.4
Description of Business and Basis of Presentation
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business and Basis of Presentation Description of Business and Basis of Presentation
Toast Inc. ("Toast", "we," or the “Company”), is a cloud-based, all-in-one digital technology platform purpose-built for the entire restaurant community. We provide a comprehensive platform of software-as-a-service, or SaaS, products and financial technology solutions, including integrated payment processing, restaurant-grade hardware, and a broad ecosystem of third-party partners. We serve as the restaurant operating system, connecting front of house and back of house operations across service models including dine-in, takeout, delivery, catering, and retail.

Basis of Presentation

The accompanying 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 SEC. The consolidated financial statements include the accounts of our Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Risks and Uncertainties

We are subject to a number of risks and uncertainties, including geopolitical events, presidential elections and transitions, natural disasters, public health concerns or epidemics, and macroeconomic conditions, such as changes in inflation and interest rates, which may also impact consumer behavior, the industries we serve, and our business.
v3.25.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments and assumptions that can affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from estimates.

Estimates, judgments, and assumptions in these consolidated financial statements include, but are not limited to, those related to revenue recognition, fair values and useful lives of assets acquired and liabilities assumed through business combinations, stock-based compensation expense, fair value measurements of warrants, the allowance for credit losses, liabilities associated with financial guarantees related to loan purchase activities, incremental borrowing rates applied in valuation of lease liabilities, accounting for income taxes, as well as the amortization period for deferred contract acquisition costs.

Fair Value Measurements

Certain assets and liabilities are carried at fair value under U.S. GAAP. These include cash and cash equivalents, marketable securities, and warrants to purchase common stock. We also measure certain assets and liabilities at fair value on a nonrecurring basis. These assets and liabilities primarily include assets acquired and liabilities assumed in business combinations and liabilities related to our obligation to perform under certain financial guarantees (See Note 2, "Summary of Significant Accounting Policies", "Assets and Liabilities Recorded with Loan Servicing Activities"). Impairments, if any, of property and equipment and/or intangible assets, are written down to fair value measured at such time on a nonrecurring basis. Other financial assets and liabilities are carried at cost with fair value disclosed, if required. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:
•Level 1—Quoted prices in active markets for identical assets or liabilities.

•Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.

•Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

The fair value of our marketable securities is determined based on quoted market prices of similar assets and classified as Level 2 within the fair value hierarchy. (See Note 3, “Financial Instruments”). The carrying values of accounts receivable, accounts payable, and accrued expenses approximate their fair values due to their short-term nature.

Concentration of Credit Risk and Significant Customers

Financial instruments that subject us to significant concentrations of credit risk primarily consist of cash deposits and cash equivalents, marketable securities, and accounts receivable. We maintain a large portion of our cash deposits and cash equivalents primarily with one financial institution, which, at times, may exceed federally insured limits. We have not incurred any losses associated with this concentration of deposits. Our investment policy provides guidelines and limits regarding investment type, concentration, credit quality, and maturity aimed at maintaining sufficient liquidity to satisfy operating and working capital requirements along with strategic initiatives, preserving capital, and minimizing risk of capital loss while generating returns on our investments.

Accounts receivable are typically unsecured. We regularly monitor the creditworthiness of our customers and believe that we have adequately provided for exposure to potential credit losses. During the fiscal years ended December 31, 2025, 2024, and 2023, we had no customers that individually accounted for more than 10% of our total revenue and no customers that individually accounted for more than 10% of our total accounts receivable as of December 31, 2025 or 2024.

Segment Information

Our operations constitute a single operating and reportable segment. Operating segments are defined as components of an enterprise for which discrete financial information is available and is evaluated regularly by the chief operating decision maker, or CODM, in deciding how to allocate resources and assess performance. Our CODM is our Chief Executive Officer who reviews financial information presented on a consolidated basis for the purposes of allocating resources and evaluating financial performance.

Revenue Recognition

We principally generate revenues from: (1) subscription services from our SaaS products, (2) financial technology solutions, including loan servicing activities, and (3) hardware and professional services.

Determining whether products and services are considered distinct performance obligations that should be accounted for separately as opposed to being combined requires judgment. We allocate total arrangement consideration at the inception of an arrangement to each performance obligation using the relative selling price allocation method based on each distinct performance obligation’s standalone selling price, or SSP. We allocate variable fees earned from financial technology services revenue to those distinct performance obligations where pricing practices are consistent with the allocation objective.

We measure revenues based on the amount of consideration we expect to receive in exchange for our products and/or services. Customer credits represent variable consideration which is estimated based on historical experience and accounted for as a reduction to the transaction price. We record reductions to revenues for our estimates of customer credits and an increase to liabilities in the period that the related revenue is earned. Sales taxes collected from customers and remitted to government authorities are excluded from revenue and deferred revenue.
Subscription Services

Subscription services revenue is generated from fees charged to customers for access to our software applications. Subscription services revenue is primarily based on a rate per location, and this rate varies depending on the number of software products purchased, hardware configuration, and employee count. The performance obligation is satisfied ratably over the contract period as the service is provided, commencing when the subscription service is made available to the customer. Our contracts with customers are generally for a term ranging from 12 to 36 months.

Financial Technology Solutions

Financial technology solutions revenue includes transaction-based payment processing services for customers who are charged a transaction fee for payment-processing. This transaction fee is generally calculated as a percentage of the total transaction amount processed plus a fixed per-transaction fee, which is earned as transactions are authorized and submitted for processing. We incur costs of interchange and network assessment fees, processing fees, and bank settlement fees to the third-party payment processors and financial institutions involved in settlement, which are recorded as costs of revenues. We satisfy our payment processing performance obligations and recognize the transaction fees as revenue upon authorization by the issuing bank and submission for processing. The transaction fees collected are recognized as revenue on a gross basis as we are the principal in the delivery of the managed payments solutions to the customers.

We have concluded that we are the principal in this performance obligation to provide a managed payment solution because we control the payment processing services before the customer receives them, perform authorization and fraud check procedures prior to submitting transactions for processing in the payment network, have sole discretion over which third-party acquiring payment processors we will use and are generally ultimately responsible to the customers for amounts owed if those acquiring payment processors do not fulfill their obligations. We generally have full discretion in setting prices charged to the customers. Additionally, we are obligated to comply with certain payment card network operating rules and contractual obligations under the terms of our registration as a payment facilitator and as a master merchant under our third-party acquiring payment processor agreements, which make us liable for the costs of processing the transactions for our customers and chargebacks and other financial losses if such amounts cannot be recovered from the customer.

Financial technology solutions revenue is recorded net of refunds and reversals initiated by the customer and is recognized upon authorization by the issuing bank and submission for processing.

Financial technology solutions revenue also includes fees earned from marketing and servicing loans to customers through our wholly-owned subsidiary, Toast Capital, that are originated by a third-party banking partner. In these arrangements, Toast Capital’s bank partner originates all loans, and Toast Capital then services the loans using Toast’s payments infrastructure to remit a fixed percentage of daily sales to our bank partner until the loan is repaid. Toast Capital earns fees for the underwriting and marketing of loans, which are recognized upon origination of the loan, and loan servicing fees, based on a percentage of each outstanding loan, which are recognized as servicing revenue as the servicing is delivered in accordance with ASC 860, Transfers and Servicing. Servicing revenue is adjusted for the amortization of servicing rights carried at amortized cost, included within other current assets. The marketing and facilitation fees earned upon execution of these loan agreements with its customers are recognized as revenue on a gross basis.

Hardware and Professional Services

Hardware revenue is generated from the sale of terminals, tablets, handhelds, and related devices and accessories, net of estimated returns. We invoice end-user customers upon shipment of the products. Revenue for hardware sales is recognized at the point in time when the transfer of control occurs, which is upon product shipment. We accept returns for hardware sales and estimate returns as a reduction to the transaction price, at the time of the sale based on historical returns data and experience.

Professional services revenue is generated from fees charged to customers for installation services, including business process mapping, configuration, and training. The duration of providing professional services to the customer is relatively short and completed in a matter of days. The performance obligation for professional services is considered to be satisfied upon the completion of the installation.
Cash, Cash Equivalents, Cash Held on Behalf of Customers and Restricted Cash

We define cash and cash equivalents as cash deposits, money market funds, and highly liquid investments with original maturities of 90 days or less at the time of purchase that are readily convertible to known amounts of cash.

Cash held on behalf of customers represents an asset that is restricted for the purpose of satisfying obligations to remit funds to various tax authorities to satisfy customers’ payroll, tax and other obligations. Cash held on behalf of customers is included within other current assets, and the corresponding customer funds obligation is included within accrued expenses and other current liabilities on our Consolidated Balance Sheets.

Restricted cash represents 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 (See Note 4, "Loan Servicing Activities and Acquired Loans Receivable, Net").

Marketable Securities

Our marketable securities are classified as available-for-sale. We classify our marketable securities as current assets, including those with maturities greater than 12 months, as they are available for use in current operations or to satisfy other liquidity requirements.

Marketable securities are carried at fair value, and we report unrealized gains and losses as a component of accumulated other comprehensive income (loss), net of tax, until the security is sold or matures, except for changes in the allowance for expected credit losses, which are recorded in our results of operations. Gains or losses realized from sales of marketable securities are computed based on the specific identification method and recognized as a component of other income, net in the accompanying Consolidated Statements of Operations.

We review marketable securities for impairment during each reporting period to determine if any of the securities have experienced an other-than-temporary decline in fair value. Credit losses are recognized up to the amount equal to the difference between the fair value and the amortized cost basis and recorded as an allowance for credit losses in the Consolidated Balance Sheets with a corresponding adjustment to earnings. Unrealized losses that are not related to credit losses are recognized in accumulated other comprehensive income (loss).

Accounts Receivable, net

Accounts receivable, net consists of trade accounts receivable and unbilled receivables (which we collectively refer to as accounts receivable), net of an allowance for credit losses. Unbilled receivables represent revenue recognized on a contract in excess of billings.

We record an allowance for expected credit losses for accounts receivable upon the initial recognition of an accounts receivable balance in accordance with ASC 326, Financial Instruments - Credit Losses, or ASC 326. The allowance for credit losses represents the best estimate of lifetime expected credit losses, based on customer-specific information, historical loss rates and the impact of current and future conditions, including an assessment of customer creditworthiness, historical payment experience and the age of outstanding receivables. Accounts receivable balances are written off against the allowance for credit losses when we determine that the balances are not recoverable. Provisions for the allowance for expected credit losses are recorded in general and administrative expenses in the Consolidated Statements of Operations. We evaluate the allowance for credit losses for the entire portfolio of accounts receivable on an aggregate basis due to similar risk characteristics of our customers based on similar industry and historical loss patterns.


Inventory

Inventory, which consists of tablets, printers, and networking equipment, are stated at the lower of cost or net realizable value and are accounted for using the average cost method. Substantially all inventory consists of finished goods. We evaluate ending inventory for estimated excess and obsolete inventory based primarily on
historical sales levels by product and projections of future demand, as well as the impact of changing product design and technology. We recognize outbound freight, handling costs, and damaged inventory as current-period costs.

Assets and Liabilities Recorded with Loan Servicing Activities

We perform loan servicing activities through the Toast Capital loan program, where we partner with an industrial bank to provide working capital loans to qualified Toast customers based on the customer’s current payment processing and point of sale data. Under the program, our bank partner originates the loans and we market and service the loans and facilitate the loan application and origination process. These loans provide eligible customers with access to financing up to $300 thousand dollars, and loan repayment occurs automatically through a fixed percentage of every payment transaction processed on Toast’s platform.

Under the terms of our agreement with our industrial bank partner, we are obligated to purchase certain loans originated by our industrial banking partner in cases where the customer’s payments on the loan are missing or delayed for a defined period of time, and the loan is considered defaulted or delinquent (ineligible). Our obligation is limited to a specified percentage of the total loans originated, measured on a quarterly basis. The loan purchase, net of expected recoveries, reduces our potential liability with respect to the quarterly cohort of loans from which the ineligible loan originated. Refer to Note 2, "Summary of Significant Accounting Policies", "Acquired Loans Receivable, Net" for information on our accounting for purchased loans.

This obligation represents a financial guarantee with two aspects: a contingent liability accounted for under ASC 326 related to our contingent obligation to purchase ineligible loans, and a non-contingent liability accounted for under ASC 460, Guarantees, or ASC 460, related to our obligation to stand-ready to perform under the obligation, both of which are included in accrued expenses and other current liabilities in the Consolidated Balance Sheets. We measure a contingent liability for expected credit losses which is based on historical lifetime loss data, as well as macroeconomic forecasts, as applicable, applied to the loan portfolio. Probability of default curves are generated using historical default data for portfolios of guaranteed loans with similar risk characteristics. Loss severity estimates are generated using historical collections data for the loans purchased by us. Additionally, we may apply macroeconomic factors, such as forecasted trends in unemployment rates, which are sourced externally, using a single scenario that we believe is most appropriate to the economic conditions applicable to a particular period. Projected loss rates, inclusive of historical loss data and macroeconomic factors, as applicable, are applied to the outstanding principal amounts of the guaranteed loans. We may also include qualitative adjustments that incorporate incremental information not captured in the quantitative estimates of its current expected credit losses. The expected term of the loans guaranteed by us typically range from 90 to 360 days, and the reasonable and supportable forecast period reflects the expected period over which loans repay or become ineligible through delinquency or default, which varies based on loan term.

Contingent liabilities for expected credit losses are recorded as loans are originated, along with a corresponding non-cash charge recorded within general and administrative expense in the Consolidated Statements of Operations. We remeasure contingent liabilities each reporting period and reverse the liability upon loan purchase or upon the expiration of the obligation. We record a non-contingent liability at fair value as loans are originated, with a corresponding charge recorded within general and administrative expense in the accompanying Consolidated Statements of Operations. Subsequently, the liability is amortized on a straight-line basis over the average expected obligation term, which ranges from 90 to 360 days, and derecognized upon loan purchase. Fair value of a non-contingent liability is measured based on a discounted cash flow model under the income approach which reflects various inputs and assumptions, including the probability and amount of payments to be made under the guarantee based on probabilities of loan defaults and delinquency, as well as associated losses, and a discount rate reflecting our credit risk as the guarantor. The fair value measurement of the non-contingent liability is based on significant inputs not observable in the market and thus represents a Level 3 measurement within the fair value hierarchy.

Please refer to Note 4, “Loan Servicing Activities and Acquired Loans Receivable, Net” for additional information on the liabilities related to the financial guarantees.


Acquired Loans Receivable, net

We are obligated to purchase delinquent loans from our industrial bank partner. Such purchases, net of expected recoveries, are recorded as a reduction of contingent liabilities with respect to the quarterly cohort of
loans from which the defaulted loan originated. We account for purchased loans in accordance with the guidance for purchased credit deteriorated, or PCD, assets as the loans experienced credit quality deterioration between their origination and purchase, and write off their unpaid principal balance at the time of purchase as collectability is not probable. However, when we have an expectation of collecting cash flows, a negative allowance is established for purchased loans based on our historical experience of expected recoveries across our portfolio.

Deferred Contract Acquisition Costs

Based on ASC 340-40, Other Assets and Deferred Costs, we capitalize and amortize incremental costs of obtaining a contract, such as sales commissions and related payroll taxes, over the period we expect to derive benefits from the contract. The period of benefit for commissions paid for the acquisition of initial subscription services is determined by taking into consideration the initial estimated customer life and the technological life of our subscription services platform and related significant features. We adjust the carrying value of the deferred commissions assets periodically to account for customer churn, which occurs when customers have ceased operations or otherwise discontinued using our subscription services and financial technology solutions. Amortization expense is included in sales and marketing expenses in the Consolidated Statements of Operations.

Property and Equipment

Property and equipment are stated at cost, net of accumulated depreciation, and are depreciated using the straight-line method over their estimated lives, as follows:

Property and Equipment
Estimated Useful Life
Computer and other equipment
3 years
Office furniture and fixtures
3 years
Tooling and equipment
3 - 7 years
Capitalized software
3 years

Leasehold improvements are amortized over the shorter of their estimated useful lives or the remaining terms of the respective leases. Repair and maintenance costs are expensed as incurred, whereas major improvements are capitalized as additions to property and equipment.

We account for our internal use software and website development costs in accordance with the guidance in ASC 350-40, Internal-Use Software. The costs incurred prior to the application development stage and post implementation are expensed as incurred. Direct and incremental internal and external costs incurred during the application development stage are capitalized until the application is substantially complete and ready for its intended use, at which point amortization begins. Training and data conversion costs are expensed as incurred.

Operating Leases

We determine if an arrangement is or contains a lease at contract inception. Lease agreements generally contain lease and non-lease components, which we elect to combine for all asset classes as a single lease component. Payments under lease arrangements are primarily fixed. Variable payments typically represent non-lease components, which consist primarily of payments for maintenance, utilities, and management fees. Variable payments included in lease arrangements are expensed as incurred and excluded from the right-of-use assets and lease liabilities.

Right-of-use assets and lease liabilities for operating leases are initially measured on the lease commencement date based on a present value of lease payments over the lease term, net of any lease incentives received by the lessor. Lease payments are discounted to present value using our estimated incremental borrowing rate, because a readily determinable implicit rate is not available. Our incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located.

The lease term includes the non-cancelable term, unless it is reasonably certain that a renewal or termination option will be exercised.
We do not record right-of-use assets and lease liabilities for leases with an initial term of 12 months or less and recognize lease expense on a straight-line basis over the lease term.

Business Combinations and Goodwill

We account for business combinations using the acquisition method of accounting in accordance with which assets acquired and liabilities assumed are recorded at their respective fair values on the acquisition date. The fair value of the consideration transferred in a business combination, including any contingent consideration, is allocated to the assets acquired and liabilities assumed based on their respective fair values. The excess of the consideration transferred over the fair values of the assets acquired and the liabilities assumed is recorded as goodwill. During the measurement period, which may be up to one year from the acquisition date or upon a final determination of asset and liability fair values, whichever occurs first, we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Any subsequent adjustments are recorded on the Consolidated Statements of Operations.

Goodwill represents the excess of purchase price over the fair value of net tangible and identifiable intangible assets of the businesses acquired by us. We have one reporting unit and test goodwill for impairment at least annually in the fourth quarter or more frequently if indicators of potential impairment exist. If the carrying value of the reporting unit exceeds its fair value, an impairment loss is recognized for the excess of the carrying value of the reporting unit over its fair value. There were no goodwill impairment losses recognized during the fiscal years ended December 31, 2025, 2024, and 2023. Based on our quantitative goodwill impairment test, the reporting unit’s fair value significantly exceeded its carrying value at December 31, 2025.

During the quarter ended on December 31, 2025, we voluntarily changed the date of our annual goodwill impairment test from December 31 to October 1. We believe the change in goodwill impairment date does not result in a material change in the method of applying the accounting principle. This change provides us with additional time to complete the annual goodwill impairment testing in advance of year-end reporting. The change in accounting principle related to the annual testing date will not delay, accelerate or avoid an impairment charge. This change has been applied prospectively as retrospective application is deemed impracticable due to the inability to objectively determine the assumptions and significant estimates used in earlier periods without the benefit of hindsight.

Intangible Assets and Impairment of Long-lived Assets

Intangible assets primarily consist of finite-lived acquired technology and customer relationships. Finite-lived intangible assets are valued based on estimated future cash flows and amortized on a straight-line basis over their estimated useful lives. We evaluate the remaining estimated useful life of our intangible assets on an ongoing basis to determine whether events and circumstances warrant a revision to the remaining amortization period.

Acquired technology and customer relationships amortization is recorded within costs of revenue and sales and marketing expenses, respectively, within the Consolidated Statements of Operations.

The estimated useful lives for acquired technology and customer relationship intangible assets are as follows:
Estimated Useful Life
Acquired technology
3 - 10 years
Customer acquired intangible assets
5 - 6 years

We evaluate the recoverability of property and equipment and finite lived intangible assets for impairment whenever events or circumstances indicate that the carrying amounts of such assets may not be recoverable. For purposes of this assessment, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability is measured by comparing the carrying amount of an asset group to the estimated future undiscounted future net cash flows expected to be generated from their use and eventual disposal. If the carrying amount is not recoverable, the carrying amount is reduced to fair value and impairment loss is
recognized. See Note 7, "Other Balance Sheet Information" for additional information related to property and equipment impairments.

Deferred Revenue

Deferred revenue represents our obligation to transfer products or services to customers for which consideration has been received and consists of amounts deferred from subscription services contracts, professional service engagements, and customer deposits received in advance. Amounts deferred under subscription service contracts are recognized ratably over the respective term of the customer contract.

Costs of Revenue

Costs of revenue primarily consists of costs associated with payment processing, personnel, and related infrastructure for operation of our cloud-based platform, data center operations, customer support, loan servicing and allocated overhead. Hardware costs consist of all product and shipping costs associated with tablets, printers, and other peripherals. Employee-related costs consist of salaries, benefits, bonuses, and stock-based compensation expense. Overhead consists of certain facilities costs, depreciation expense, and amortization costs associated with internally developed software and acquired intangible assets.

Payment processing costs include interchange fees, network assessment fees and fees paid to the acquiring payment processors.

Stock-Based Compensation Expense

We grant equity awards, including stock options which vest upon the satisfaction of service conditions and restricted stock units, or RSUs, which vest upon the satisfaction of service and/or performance conditions. We account for stock-based compensation expense related to equity awards in accordance with ASC 718, Compensation—Stock Compensation. Stock-based awards are measured at fair value on the grant date and compensation cost is recognized over the requisite service period, net of estimated forfeitures. We estimate a forfeiture rate to calculate the stock-based compensation expense for all awards based on an analysis of actual historical experience and expected employee attrition rates.

Compensation cost is recognized on a straight-line basis for stock-options, RSUs, and our 2021 Employee Stock Purchase Plan, or ESPP, and on an accelerated attribution basis for awards with a performance condition for each separately vesting portion of the award over the applicable vesting period and only if performance-based conditions are considered probable to be satisfied.

We use the Black-Scholes option-pricing model to determine the estimated fair value of stock option and ESPP awards based on the date of the grant. We estimate the following assumptions used in the option pricing model:

•Expected Volatility—We estimate the expected volatility of our Class A common stock based upon the weighted-average historical stock price volatility of our Class A Common stock and the average historical volatility of comparable publicly traded companies in our industry group over a period commensurate with the options' expected term.

•Expected Term—The expected term of our stock options represents the period that the stock-based awards are expected to be outstanding. We do not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. As such, we estimate the expected term of the options based on the simplified method determined based on the midpoint of the stock options vesting term and contractual expiration period.

•Risk-Free Interest Rate—The risk-free interest rate is based on the U.S. Treasury yield curve published as of the grant date, with maturities approximating the expected term of the options granted.

•Dividend Yield—We have not declared or paid dividends to date and do not anticipate declaring dividends. As such, the expected dividend is zero.
Advertising Costs

We expense advertising costs as incurred. Advertising expense for the fiscal years ended December 31, 2025, 2024, and 2023, was $54 million, $43 million, and $29 million, respectively, and is included in sales and marketing expense in the accompanying Consolidated Statements of Operations.

Income Taxes

We account for income taxes in accordance with ASC 740, Income Taxes. Under this method, deferred tax assets and liabilities are recognized based on temporary differences between the financial reporting and income tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. In addition, this method requires a valuation allowance against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

We account for uncertain tax positions recognized in the consolidated financial statements by prescribing a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Interest and penalties, if applicable, related to uncertain tax positions would be recognized as a component of income tax expense.

Net Income (Loss) Per Share Attributable to Common Stockholders

Our Class A common stock and Class B common stock share proportionately, on a per share basis, in our net income (losses) and participate equally in the dividends on common stock, if declared. We allocate net income and losses attributable to common stock between the common stock classes on a one-to-one basis when computing net income (loss) per share attributable to common stockholders. As a result, basic and diluted net income (loss) per share of Class A common stock and Class B common stock are equivalent.

We compute net income (loss) per common share based on the two-class method required for multiple classes of common stock and participating securities. The two-class method requires income (loss) available to common stockholders for the period to be allocated between multiple classes of common stock and participating securities based upon their respective rights to receive dividends as if all income (loss) for the period had been distributed.

Basic net income (loss) per common share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of our Class A and Class B common stock outstanding, adjusted for outstanding shares that are subject to repurchase and Class A restricted common stock. Diluted income (loss) per common share gives effect to all potentially dilutive securities which are excluded from the computation if the effect is antidilutive.
Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires enhancement and further transparency to certain income tax disclosures, most notably the tax rate reconciliation and income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024 on either a prospective or retrospective basis, with early adoption permitted. The Company adopted ASU 2023-09 for the fiscal year ended December 31, 2025 on a prospective basis. See Note 12, “Income Taxes” for additional information.

Accounting Pronouncements Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), which requires disclosure of disaggregated information about specific categories underlying certain income statement expense line items in the footnotes to the financial statements for both annual and interim periods. This ASU is effective for fiscal year beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the impact of the adoption of this standard.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40), which provides targeted improvements to the accounting for internal-use software costs by replacing the existing project-stage model with a principles-based approach to determine when capitalization of costs should begin. This ASU is effective for all entities for annual reporting periods beginning after December 15, 2027 on a prospective basis, with early adoption permitted. We are currently evaluating the impact of the adoption of this standard.
v3.25.4
Financial Instruments
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Financial Instruments Financial Instruments
The following table presents information about our financial assets and liabilities that were 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):

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 
December 31, 2024
Level 1Level 2Level 3Total
Assets:
Money market funds
$
671 
$
— 
$
— 
$
671 
Commercial paper
— 
24 
— 
24 
Certificates of deposit
— 
3 
— 
3 
Corporate bonds
— 
100 
— 
100 
U.S. government agency securities
— 
7 
— 
7 
Treasury bonds
— 
233 
— 
233 
Asset-backed securities
— 
147 
— 
147 
$
671 
$
514 
$
— 
$
1,185 
Liabilities:
Warrants to purchase common stock
$
— 
$
— 
$
22 
$
22 
$
— 
$
— 
$
22 
$
22 

During the fiscal years ended December 31, 2025 and 2024, there were no transfers amongst Level 1, Level 2 and Level 3.

We did not recognize any credit losses or non-credit-related impairments related to our available-for-sale marketable debt securities for the years ended December 31, 2025, 2024, and 2023. All unrealized losses were immaterial and recognized in other comprehensive income (loss).

The following table is an analysis of our debt securities in unrealized loss positions (in millions):
December 31, 2025
December 31, 2024
Fair Value
Unrealized Losses
Fair Value
Unrealized Losses
Commercial paper
$
20 
$
— 
$
13 
$
— 
Corporate bonds
47 
— 
33 
— 
U.S. government agency securities
— 
— 
7 
— 
Treasury bonds
— 
— 
102 
— 
Asset-backed securities
— 
— 
13 
— 
Total
$
67 
$
— 
$
168 
$
— 
Marketable Securities

The fair values of the marketable securities by contractual maturities at December 31, 2025 were as follows (in millions):
December 31, 2025
Due within 1 year
$
333 
Due after 1 year through 5 years
291 
Due after 5 years and thereafter
14 
Total marketable securities
$
638 
Valuation of Warrants to Purchase Common Stock

The fair value of the warrants was determined using the Black-Scholes option-pricing model. The following table indicates the weighted-average assumptions made in estimating the fair value as of:
December 31, 2025December 31, 2024
Risk-free interest rate
3.5 
%
4.3 
%
Contractual term (in years)
1
2
Expected volatility
45.7 
%
57.5 
%
Expected dividend yield
— 
%
— 
%
Exercise price per share
$
17.5 
$
17.5 

Fair Value of Liabilities

The following table provides a roll-forward of the aggregate fair value of our common stock warrant liability for which fair value is determined using Level 3 inputs (in millions):
Common Stock Warrant Liability
Balance as of December 31, 2023
$
64 
Change in fair value
49 
Warrant extinguishment
(74)
Settlement
(17)
Balance as of December 31, 2024
22 
Change in fair value
(3)
Balance as of December 31, 2025
$
19 

On July 3, 2024, we repurchased a warrant, or the Warrant, to purchase 5 million shares of our Class B common stock for an aggregate purchase price of $61 million, or the Warrant Repurchase. The Warrant was canceled and is no longer outstanding. Immediately prior to the Warrant Repurchase, we recognized a remeasurement gain of $2 million within “Change in fair value of warrant liability” in the Consolidated Statements of Operations for the fiscal year ended December 31, 2024. Upon the Warrant Repurchase, we also recognized a gain on the extinguishment of the Warrant of $14 million within “Other income, net” in the Consolidated Statements of Operations for the fiscal year ended December 31, 2024.

As of December 31, 2025 and 2024, the maximum number of shares of our common stock that could be required to be issued upon the exercise of outstanding warrants was 1 million and 1 million, respectively.
v3.25.4
Loan Servicing Activities and Acquired Loans Receivable, Net
 12 Months Ended
Dec. 31, 2025
Guarantees and Product Warranties [Abstract]  
Loan Servicing Activities and Acquired Loans Receivable, Net Loan Servicing Activities and Acquired Loans Receivable, Net
Changes in the contingent liability for expected credit losses for the fiscal years ended December 31, 2025 and 2024 were as follows (in millions):

Year Ended December 31,
20252024
Beginning balance
$
29 
$
29 
Credit loss expense
62 
45 
Reductions due to loan purchases
(45)
(45)
Ending balance
$
46 
$
29 

The balance of the non-contingent stand-ready liability was $18 million and $10 million, as of December 31, 2025 and 2024, respectively, recorded in accrued expenses and other current liabilities on the Consolidated Balance Sheets.
As of December 31, 2025 and 2024, $71 million and $59 million, respectively, were classified as restricted cash on the 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.
v3.25.4
Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
The changes in the carrying amount of goodwill for the periods presented were as follows (in millions):

Amount
Balance as of December 31, 2023
$
113 
Acquisitions
— 
Balance as of December 31, 2024
113 
Acquisitions
— 
Balance as of December 31, 2025
$
113 

Intangible assets, net consisted of the following (in millions):

As of December 31, 2025
Technology AssetsCustomer AssetsTotal
Gross carrying amount
$
40 
$
7 
$
47 
Accumulated amortization
(28)
(5)
(33)
Intangible assets, net
$
12 
$
2 
$
14 

As of December 31, 2024
Technology AssetsCustomer AssetsTotal
Gross carrying amount
$
40 
$
7 
$
47 
Accumulated amortization
(23)
(4)
(27)
Intangible assets, net
$
17 
$
3 
$
20 

The total estimated future amortization of intangible assets as of December 31, 2025 was as follows (in millions):


Amount
2026
$
6 
2027
4 
2028
1 
2029
1 
2030
1 
Thereafter
1 
Total
$
14 
v3.25.4
Debt
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Debt Debt
Revolving Line of Credit

During 2021 we entered into a senior secured credit facility, or the 2021 Facility, which we subsequently amended on March 2, 2023, to replace the London Interbank Offered Rate, or LIBOR with the Secured Overnight Financing Rate, or SOFR. On May 6, 2025, we amended and restated our 2021 Facility to increase the available revolving commitments from $330 million to $350 million and to extend the term of the 2021 Facility to May 6, 2030. We were in compliance with all financial covenants as of December 31, 2025. As of December 31, 2025, there were no borrowings outstanding on the 2021 Facility and outstanding letters of credit totaled $3 million. As of December 31, 2025, our total available borrowing capacity under the 2021 Facility was $347 million.
v3.25.4
Other Balance Sheet Information
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Other Balance Sheet Information Other Balance Sheet Information
Accounts Receivable, Net (in millions)
December 31,
20252024
Accounts receivable
$
103 
$
99 
Unbilled receivables
33 
24 
Less: Allowance for credit losses
(9)
(8)
Accounts receivable, net
$
127 
$
115 

A summary of changes in our allowance for credit losses with respect to our accounts receivable is as follows (in millions):

Year Ended December 31,
20252024
Beginning balance
$
(8)
$
(11)
Additions
(22)
(21)
Write offs
21 
24 
Ending balance
$
(9)
$
(8)

Other Current Assets (in millions)
December 31,
20252024
Cash held on behalf of customers
$
159 
$
123 
Deferred contract acquisition costs, current (Note 10)
98 
74 
Prepaid expenses
39 
29 
Other
141 
99 
    Total other current assets
$
437 
$
325 
Property and Equipment, Net (in millions)
December 31,
20252024
Capitalized software
$
202 
$
150 
Computer equipment
29 
21 
Leasehold improvements
11 
15 
Tooling and equipment
8 
5 
Furniture and fixtures
3 
4 
Construction in process
3 
3 
    Property and equipment, gross
256 
198 
Less: Accumulated depreciation and amortization
(151)
(100)
    Property and equipment, net
$
105 
$
98 

Depreciation and amortization expense, which excludes amortization expense related to capitalized software, for the fiscal years ended December 31, 2025, 2024, and 2023, was $8 million, $11 million, and $10 million, respectively.

During the fiscal years ended December 31, 2025 and 2024, we capitalized $54 million and $53 million, respectively, in software and website development costs. As of December 31, 2025 and 2024, property and equipment, net in the Consolidated Balance Sheets included unamortized software and website development costs of $82 million and $80 million, respectively. Amortization expense attributable to capitalized software and website development costs was $49 million, $30 million, and $16 million, respectively, for the fiscal years ended December 31, 2025, 2024, and 2023. For the fiscal years ended December 31, 2025, 2024, and 2023, impairment expense was $3 million, $2 million and $15 million, respectively.

Accrued Expenses and Other Current Liabilities (in millions)

December 31,
20252024
Accrued transaction-based costs
$
368 
$
312 
Customer funds obligation
159 
123 
Accrued expenses
74 
69 
Accrued payroll and bonus
133 
126 
Contingent liability for expected credit losses
46 
29 
Other liabilities
74 
56 
    Total accrued expenses and other current liabilities
$
854 
$
715 
v3.25.4
Common Stock
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Common Stock Common Stock
Shares of Stock

Each share of Class A common stock entitles the holder to one vote per share and each share of Class B common stock entitles the holder to ten votes per share on all matters submitted to a vote of stockholders. Holders of Class A common stock and Class B common stock are entitled to receive dividends, when and if declared by our Board of Directors, or our Board. Each share of Class B common stock is convertible into one share of Class A common stock voluntarily at any time by the holder, and will convert automatically into one share of Class A common stock upon the earlier of (a) the date the holders of two-thirds of our outstanding Class B common stock elect to convert the Class B common stock to Class A common stock, or (b) September 24, 2028. In addition, with certain exceptions as further described in our amended and restated certificate of incorporation, transfers of one share of Class B common stock will generally result in the conversion of such share of Class B common stock into one share of Class A common stock. During the fiscal years ended December 31, 2025, 2024 and 2023, 15 million, 33 million and 56 million shares of Class B common stock converted into Class A common stock, respectively.

Share Repurchase Program
In February 2024, we announced the authorization of a share repurchase program for the repurchase of shares of our Class A common stock, in an aggregate amount of up to $250 million. The repurchase program has no expiration date, does not obligate us to acquire any particular amount of our Class A common stock, and may be suspended at any time at our 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 fiscal year ended December 31, 2025, we repurchased $107 million of Class A common stock. At December 31, 2025, approximately $87 million remained authorized for repurchase under our share repurchase program.

Shares Reserved for Charitable Donations

In recognition of our values and commitment to local communities, we joined the Pledge 1% movement to fund our social impact initiatives through Toast.org, our social impact arm. During the fiscal year ended December 2021, our Board approved reserving 5 million shares of Class A common stock that we may, but are not obligated to, issue over a certain period to fund our social impact initiatives through Toast.org. During the fiscal years ended December 31, 2025, 2024 and 2023, we recognized stock-based charitable contribution expense of $6 million, $5 million and $10 million, respectively, for the fair value of the donated shares. Such expenses were recorded within general and administrative expenses in the Consolidated Statements of Operations. As of December 31, 2025, 3 million shares were reserved for future issuances for charitable donations.
v3.25.4
Stock-Based Compensation Expense
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Expense Stock-Based Compensation Expense
Stock-based compensation expense recognized for the fiscal years ended December 31, 2025, 2024, and 2023, was as follows (in millions):

Year Ended December 31,
202520242023
Cost of revenue
$
34 
$
40 
$
43 
Sales and marketing
57 
54 
58 
Research and development
88 
84 
94 
General and administrative
60 
63 
82 
Restructuring expenses
3 
12 
— 
  Total stock based compensation
$
242 
$
253 
$
277 

Stock Option and Incentive Plans

The 2021 Stock Option and Incentive Plan, or the 2021 Plan, was adopted and approved in 2021. The 2021 Plan replaced the 2014 Plan, which was initially adopted in 2014 and continues to govern outstanding equity awards granted thereunder. The 2021 Plan allows us to make equity-based and cash-based incentive awards to our officers, employees, directors, and consultants. The number of shares reserved and available for issuance under the 2021 Plan automatically increases each January 1, by 5% of the total outstanding number of shares of the Class A common stock and Class B common stock on the immediately preceding December 31, or such lesser number of shares as determined by the Compensation Committee of our Board. As of December 31, 2025, 119 million shares were authorized for future issuance under the 2021 Plan.
2021 Employee Stock Purchase Plan

In 2021, our Board adopted, and our stockholders approved, the 2021 Employee Stock Purchase Plan, or ESPP. The ESPP provides that the number of shares reserved and available for issuance will automatically increase on January 1 of each year through January 1, 2031, by the lesser of: (i) 12 million shares of our Class A common stock, (ii) 1% of the issued and outstanding total number of shares of Class A common stock and Class B common stock on the date immediately preceding December 31, or (iii) such lesser number of shares of Class A common stock as determined by the plan administrator of the ESPP.

As of December 31, 2025, 31 million shares of our Class A common stock were authorized for issuance to participating employees who are allowed to purchase shares of Class A common stock at a price equal to 85% of its fair market value at the beginning or the end of the offering period, whichever is lower.

Stock Options

Our stock option awards generally have a requisite service period of four to five years and a contractual life of ten years.

The following table indicates the weighted-average assumptions made in estimating the fair value based on the Black-Scholes model as of December 31, 2025, 2024, and 2023:

Year Ended December 31,
202520242023
Risk-free interest rate
4.05
%
4.06
%
3.90
%
Expected term (in years)
6.09
6.09
6.08
Expected volatility
59
%
59
%
56
%
Expected dividend yield
0
%
0
%
0
%
Weighted-average fair value per share of common stock
$
34.00
$
24.53
$
18.01
Weighted-average fair value per share of options issued
$
20.16
$
14.51
$
10.24

The following is a summary of stock option activity under our stock option plans:

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, 2024
28
$
9.42 
Granted
2 
34.00 
Exercised
(8)
7.81 
Forfeited
(1)
18.90 
Outstanding as of December 31, 2025
21
$
11.84 
Options vested and expected to vest as of
December 31, 2025
20 
$
11.49 
5.1
$
482 
Options exercisable as of December 31, 2025
17 
$
8.85 
4.6
$
458 
(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 the month of December 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 values of options exercised was $278 million, $401 million, and $137 million for the fiscal years ended December 31, 2025, 2024, and 2023, respectively.

As of December 31, 2025, total unrecognized stock-based compensation expense related to the options was $42 million and is expected to be recognized over the remaining weighted-average service period of 2.7 years.

Restricted Stock Units

The majority of our restricted stock units, or RSU, awards have a requisite service period of four years. We reflect RSUs as issued and outstanding shares of common stock when such units vest. The following table summarizes RSU activity as of December 31, 2025:

RSU
(in millions)
Weighted- Average Grant Date Fair Value (per share)
Outstanding balance as of December 31, 2024
22 
$
21.41 
Granted
6 
36.09 
Vested
(10)
22.37 
Forfeited
(3)
22.42 
Outstanding balance as of December 31, 2025
15 
$
26.80 
Expected to vest as of December 31, 2025
13 
$
26.19 

The weighted-average grant-date fair value per share of RSUs granted during the fiscal years ended December 31, 2024 and 2023 was $24.77 and $18.58, respectively. The fair value of RSUs vested during the fiscal years ended December 31, 2025, 2024, and 2023 was $405 million, $284 million, and $208 million, respectively.

As of December 31, 2025, total unrecognized stock-based compensation expense related to the RSUs was $289 million and is expected to be recognized over the remaining weighted-average service period of 2.65 years.
v3.25.4
Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2025
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):

Year Ended December 31,
20252024
Deferred revenue, beginning of period
$
63 
$
41 
Deferred revenue, end of period
$
69 
$
63 
Revenue recognized in the period from amounts included in deferred revenue at the beginning of period
$
59 
$
39 

Deferred revenue includes amounts classified within other long-term liabilities on our Consolidated Balance Sheets.

As of December 31, 2025, $999 million of revenue is expected to be recognized from remaining performance obligations for customer contracts. We expect to recognize revenue of approximately $936 million of 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):

Year Ended December 31,
20252024
Beginning balance
$
172 
$
127 
Capitalization
147 
127 
Amortization
(99)
(82)
Ending balance
$
220 
$
172 
As of December 31, 2025 and 2024, $98 million and $74 million, respectively, of our current deferred contract acquisition costs were recorded within other current assets with the remaining balance recorded within other non-current assets in the accompanying Consolidated Balance Sheets.
v3.25.4
Restructuring Plan
 12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Restructuring Plan Restructuring Plan
During the three and twelve months ended December 31, 2025, we incurred $4 million and $12 million, respectively, of one-time restructuring costs to continue focusing on operational efficiency, primarily consisting of cash severance costs and the acceleration of stock-based compensation for certain terminated employees. These charges were recorded within restructuring expenses on our Consolidated Statements of Operations. As of December 31, 2025, we substantially completed this restructuring activity with immaterial remaining liabilities.
In February 2024, we announced a restructuring plan, or the 2024 Restructuring Plan, designed to promote overall operating expense efficiency, including a reduction in force and certain other actions to reorganize our facilities and operations. In connection with this 2024 Restructuring Plan, we incurred restructuring and restructuring-related charges of $46 million during the fiscal year ended December 31, 2024. These charges were recorded within restructuring expenses on our Consolidated Statements of Operations, primarily consisting of cash severance costs and the acceleration of stock-based compensation for certain terminated employees. As of December 31, 2025, we completed the 2024 Restructuring Plan.
v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of income (loss) before income taxes are as follows (in millions):

Year Ended December 31,
202520242023
United States
$
318 
$
7 
$
(258)
Foreign
28 
15 
14 
Income (loss) before income taxes
$
346 
$
22 
$
(244)

The components of income tax (expense) benefit for the fiscal years ended December 31, 2025, 2024, and 2023, were as follows (in millions):
Year Ended December 31,
202520242023
Current state
$
(3)
$
(2)
$
(1)
Current foreign
(1)
(1)
(2)
Current tax expense
(4)
(3)
(3)
Deferred federal
— 
— 
1 
Deferred tax benefit
— 
— 
1 
Total income tax (expense) benefit
$
(4)
$
(3)
$
(2)
The tax effects of temporary differences that gave rise to a significant portion of the deferred tax assets and liabilities at December 31, 2025 and 2024, were as follows (in millions):
December 31,
20252024
Deferred tax assets:
Net operating loss carryforwards
$
246 
$
210 
Stock-based compensation expense
18 
25 
Credit carryforward
84 
63 
Accrued expenses and reserves
88 
65 
Charitable contributions
13 
11 
Deferred revenue
1 
1 
Depreciation
— 
2 
Capitalized R&D
46 
112 
Lease liability
7 
8 
Total deferred tax assets
503 
497 
Valuation allowance
(436)
(442)
Net deferred tax assets
67 
55 
Deferred tax liabilities:
Depreciation
(1)
— 
Amortization
(3)
(5)
Capitalized contract acquisition costs
(56)
(44)
Right-of-use asset
(7)
(6)
Total deferred tax liabilities
(67)
(55)
Net deferred tax asset (liability)
$
— 
$
— 

Below is a tabular reconciliation of our effective tax rate to the United States federal income tax rate pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2025 (dollars in millions):
Year Ended December 31, 2025
Amount
Percent
U.S federal statutory tax rate
$
73 
21.0 
%
State and local income taxes, net of federal income tax effect (a)
2 
0.6 
%
Foreign tax effects
Other foreign jurisdictions
(4)
(1.3)
%
Effect of changes in tax laws or rates enacted in the current period
— 
— 
%
Effect of cross-border tax laws
Other
1 
0.5 
%
Tax Credits
Research and development tax credits
(17)
(5.0)
%
Changes in valuation allowances
(9)
(2.5)
%
Nontaxable or nondeductible items
Share based payment awards
(70)
(20.2)
%
Executive compensation
26 
7.5 
%
Other
2 
0.6 
%
Changes in unrecognized tax benefits
— 
— 
%
Effective Tax Rate
$
4 
1.2 
%
(a) During the year ended December 31, 2025 state taxes in California and Texas made up the majority (greater than 50 percent) of the tax effect in this category.
Below is a tabular reconciliation of our effective tax rate to the United States federal income tax rate, as previously disclosed, and prior to the adoption of ASU 2023-09, for the years ended December 31, 2024 and 2023:
December 31,
2024
2023
Tax provision at statutory rate
21.0%
21.0%
State tax - net of federal
(20.2)%
5.4%
Warrants
33.7%
0.3%
Non-deductible executive compensation
95.1%
(0.9)%
Non-deductible meals and entertainment
6.3%
(0.5)%
Research and development credits
(29.3)%
6.5%
Stock-based compensation expense
(304.9)%
3.6%
Change to uncertain tax positions
17.4%
—%
Global intangible low-taxed income
(8.6)%
(1.3)%
Other, net
(3.9)%
0.4%
Change in valuation allowance
204.9%
(35.3)%
Effective Tax Rate
11.5%
(0.8)%

During the fiscal year ended December 31, 2025, we recorded an income tax expense of $4 million, which is primarily attributable to $3 million of U.S. state tax expense and $1 million of foreign tax expense related to the earnings of our profitable foreign subsidiaries.

On July 4, 2025, the One Big Beautiful Bill Act, or OBBBA, was signed into law, which represents the enactment date under U.S. GAAP. Key corporate tax provisions include the restoration of 100% bonus depreciation, immediate expensing for domestic research and experimental expenditures, changes to Section 163(j) interest limitations, updates to Global Intangible Low-Taxed Income, or GILTI, and Foreign-Derived Intangible Income, or FDII, rules, amendments to energy credits, and expanded Section 162(m) aggregation requirements.

In accordance with ASC 740, we recognized the effects of the OBBBA in the period of enactment. Management evaluated the provisions of the OBBBA, recalculated temporary differences, reassessed valuation allowances, and considered any necessary adjustments. The enactment of the OBBBA did not have a material impact on our consolidated financial statements for the year ended December 31, 2025. Management will continue to monitor forthcoming guidance, interpretations, and technical clarifications to assess whether any future adjustments or additional disclosures may be required in subsequent periods.

Management evaluated all available positive and negative evidence in assessing the realizability of our net deferred tax assets. Evidence included the availability of taxable income in carryback periods, reversals of existing taxable temporary differences, tax planning strategies and future income projections. Based upon the evidence, including our historical book and taxable losses, management determined that it is more likely than not that our U.S. net deferred tax assets will not be realized, and therefore the valuation allowance was retained against our net U.S. deferred tax assets as of December 31, 2025. On a worldwide basis, the valuation allowance increased (decreased) by $(6) million, $45 million, and $87 million during the fiscal years ended December 31, 2025, 2024, and 2023, respectively, primarily due to the impact of stock compensation windfalls together with other equity related tax adjustments, operating losses incurred and tax credits generated during each year.

Based on current projections, management believes there is a reasonable possibility that a portion or all of the valuation allowance may be released within the next 12 months. Any such release would result in the recognition of deferred tax assets and a corresponding reduction to income tax expense in the period the release is recorded. Management will continue to reassess the valuation allowance against its net U.S. deferred tax assets based on the evaluation of all available positive and negative evidence; however, the timing and amount of any release remains uncertain and is subject to change based on future operating results.

As of December 31, 2025, we had U.S. federal net operating loss carryforwards of $928 million which may be able to offset future income tax liabilities. Of the federal net operating loss carryforward $843 million has an indefinite carryforward period, and $85 million will expire at various dates through 2037. As of December 31,
2025, we had U.S. state net operating loss carryforwards of $873 million, of which $718 million begin to expire in 2026 and the remaining $155 million do not expire. As of December 31, 2025, we had U.S. federal tax credit carryforwards of $70 million which expire between 2033 and 2045. As of December 31, 2025 we had U.S. state tax credit carryforwards of $26 million which expire between 2032 and 2040.

Cash income taxes paid during the year ended December 31, 2025 were not material to our consolidated financial statements, either individually, by jurisdiction, or in the aggregate, and therefore a jurisdictional disaggregation of cash taxes paid has not been presented.

Ownership changes, as defined in the Internal Revenue Code Section 382, could limit the amount of U.S. net operating loss and tax credit carryforwards that can be utilized annually to offset future taxable income. Generally, an ownership change occurs when the ownership percentage of 5% or greater stockholders increases by more than 50% over a three-year period. We have completed a historical ownership change analysis and while we have experienced ownership changes in the past, none of our existing federal and state tax attributes are subject to historical limitations that are expected to materially limit our utilization. Our ability to utilize our federal and state attributes could be limited by ownership changes that may occur in the future.

The following table reflects changes in unrecognized tax benefits for the periods presented below (in millions):

Year Ended December 31,
202520242023
Balance, beginning of year
$
5 
$
— 
$
— 
Additions for tax positions related to current period
2 
2 
— 
Additions for tax positions related to prior periods
— 
3 
— 
Lapse of statute of limitations / settlements
— 
— 
— 
Balance, end of year
$
7 
$
5 
$
— 

As of December 31, 2025, we had gross unrecognized tax benefits of $7 million, that if recognized would not impact the effective tax rate due to the valuation allowance maintained on our U.S. deferred tax assets. We recognize accrued interest and penalties related to income tax matters as a component of income tax expense, neither of which are material for any of the periods presented.

We file income tax returns in the United States (federal, and various state jurisdictions), as well as various foreign jurisdictions. The federal, state and foreign income tax returns are generally subject to tax examinations for the tax years ended December 31, 2022 through December 31, 2025. To the extent we have tax attribute carryforwards, the tax years in which the attribute was generated may still be adjusted upon examination by the Internal Revenue Service, state or foreign tax authorities until utilized in a future period.

Certain jurisdictions in which we operate have enacted tax legislation based on the OECD’s global minimum tax framework, or Pillar Two, with rules effective for fiscal years beginning in 2024 and additional provisions effective in 2025. We have performed an assessment of the potential impact of Pillar Two based on available information, including recent tax filings, country-by-country reporting, and financial results of affected subsidiaries. Based on this assessment, we expect Pillar Two will have an immaterial impact for the year ended December 31, 2025. We will continue to monitor developments and assess the impact of the Pillar Two rules on future periods.

As of December 31, 2025, we have not provided deferred U.S. income taxes or foreign withholding taxes on temporary differences resulting from unremitted earnings for certain non-U.S. subsidiaries, which are permanently reinvested outside of the U.S. The determination of the deferred tax liability associated with unremitted earnings which are indefinitely reinvested outside of the U.S. is not practicable.
v3.25.4
Net Income (Loss) Per Share Attributable to Common Stockholders
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share Attributable to Common Stockholders Net Income (Loss) Per Share Attributable to Common Stockholders
Basic net income (loss) per share is determined by dividing net income or loss by the weighted-average shares outstanding for the period. We analyze the potential dilutive effect of stock options, unvested restricted stock, RSUs, shares under our ESPP, and warrants to purchase common stock, during periods we generate net income, or when income is recognized related to changes in fair value of warrant liabilities.

The following table sets forth the computation of net income (loss) per share attributable to common stockholders (in millions, except per share amounts):

Year Ended December 31,
202520242023
Numerator:
Net income (loss), basic
$
342 
$
19 
$
(246)
Less: Gain on change in fair value of warrant liability(1)
3 
— 
3 
Net income (loss), diluted
$
339 
$
19 
$
(249)
Denominator:
Weighted-average shares of common stock outstanding - basic
582 
559
532
Effect of dilutive securities:
Dilutive common share equivalents included in dilutive shares
24 
32 
— 
Warrants to purchase common stock(1)
1 
— 
1 
Weighted-average shares of common stock outstanding - diluted
607 
591
533
Net income (loss) per share, basic
$
0.59 
$
0.03 
$
(0.46)
Net income (loss) per share, diluted
$
0.56 
$
0.03 
$
(0.47)
(1) During the fiscal years ended December 31, 2025 and 2023, we recorded a gain on fair value remeasurement of our warrant liability. For purposes of computing diluted income (loss) per share, these gains were excluded from our net income (loss) and the corresponding weighted-average shares were also adjusted accordingly.

The following potential common shares were excluded from the calculation of diluted net income (loss) per share because their effect would have been antidilutive for the periods presented (in millions):

Year Ended December 31,
202520242023
Options to purchase Class A common stock and Class B common stock
1 
3 
48 
Unvested restricted stock
— 
— 
1 
Unvested restricted stock units
1 
2 
33 
Warrants to purchase common stock (2)
— 
1 
— 
Total
2 
6 
82 
(2) During the fiscal year ended December 31, 2024, we recorded a loss on fair value remeasurement of our warrant liability. These warrants were excluded from the computation of diluted net income (loss) per share due to their anti-dilutive effect.
v3.25.4
Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
We have one reportable segment, Toast, Inc., consisting of a comprehensive platform of software-as-a-service, or SaaS, products, financial technology solutions, including integrated payment processing, restaurant-grade hardware, and a broad ecosystem of third-party partners. We manage the business activities on a consolidated basis. The types of software and services from which we generate revenue are described under our “Revenue Recognition” policy within our “Summary of Significant Accounting Policies.”

Our chief operating decision maker, or CODM, is our Chief Executive Officer. The CODM assesses performance for the segment and decides how to allocate resources based on net income (loss) that is also reported on the Consolidated Statements of Operations as consolidated net income (loss). The CODM does not use any segment asset measures to assess performance and decide how to allocate resources.

The following table sets out our measure of profit or loss and significant segment expenses (in millions):
Year Ended December 31,
2025
2024
2023
Revenue
$
6,153 
$
4,960 
$
3,865 
Costs of revenue(1)
(4,522)
(3,726)
(2,985)
Sales and marketing(1)
(511)
(412)
(340)
Research and development(1)
(280)
(263)
(261)
General and administrative(1)
(281)
(241)
(278)
Stock-based compensation and related payroll taxes
(255)
(256)
(288)
Other items(2)
38 
(43)
41 
Net income (loss)
$
342 
$
19 
$
(246)
(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. The amounts consist of both stock-based compensation (refer to Note 9, “Stock-Based Compensation” for tabular disclosure of amounts included within other significant segment expenses) and the corresponding payroll taxes.
(2) Other items include restructuring and restructuring-related expenses, interest income, net, change in fair value of warrant liability, other income, net and income tax (expense) benefit.

We have significant operations in the United States, Ireland, and India. We did not earn material revenue in any country other than the United States during the fiscal years ended December 31, 2025, 2024, and 2023.

The following table sets forth the breakdown of long-lived assets based on geography (in millions):
December 31,
20252024
United States
$
115 
$
111 
Ireland
4 
5 
India
9 
6 
Other
4 
1 
Total long-lived assets
$
132 
$
123 
Tangible long-lived assets consist of property and equipment and operating lease right-of-use assets. Long-lived assets attributed to specific countries are based upon the country in which the asset is located.
v3.25.4
Commitment and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Purchase Commitments

As of December 31, 2025, our non-cancellable purchase obligations to hardware suppliers totaled $106 million, all of which is due within the next 12 months.

As of December 31, 2025, our non-cancellable contractual commitments with our cloud service providers and other vendors totaled $157 million of which $90 million is due to within the next 12 months and $67 million thereafter.

Legal Proceedings

From time to time, we 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. We establish accruals for losses that management deems to be probable and subject to reasonable estimates. As of December 31, 2025 and December 31, 2024, we do not expect any claims with a reasonably possible adverse outcome to have a material impact to us, and accordingly, have not accrued for any material claims.
v3.25.4
Retirement Plan
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Retirement Plan Retirement Plan
Substantially all employees are eligible to participate in the 401(k) defined contribution plan which is sponsored by us. Participants may contribute a portion of their compensation to the plan, up to the maximum amount permitted under Section 401(k) of the Internal Revenue Code. At our discretion, we can match a portion of the participants’ contributions. During the years ended December 31, 2025, 2024, and 2023, we recognized $25 million, $21 million, and $19 million, respectively, of expense for the defined contribution plans.
v3.25.4
Subsequent Events (unaudited)
 12 Months Ended
Dec. 31, 2025
Subsequent Events [Abstract]  
Subsequent Events (unaudited) Subsequent Events (unaudited)
On February 10, 2026, our board of directors approved an increase of $500 million to our previously authorized share repurchase program for the repurchase of shares of our Class A common stock. The repurchase program has no expiration date, does not obligate us to acquire any particular amount of our Class A Common Stock, and it may be suspended at any time at our discretion.

Between December 31, 2025 and February 17, 2026, we repurchased 3 million shares of our Class A common stock for an aggregate amount of $85 million. As of February 17, 2026, and after giving effect to the authorized increase, approximately $501 million remained under the our share repurchase authorization.
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
shares
Trading Arrangements, by Individual  
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Elena Gomez [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On December 12, 2025, Elena Gomez, our President and Chief Financial Officer, entered into a trading plan pursuant to Rule 10b5-1 of the Exchange Act. This trading plan provides for the sale from time to time of a maximum of 100,000 shares of our Class A common stock pursuant to the terms of the plan. This trading plan expires on April 30, 2027, or earlier if all transactions under the trading arrangement are completed. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c).
Name Elena Gomez
Title President and Chief Financial Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date December 12, 2025
Expiration Date April 30, 2027
Arrangement Duration 504 days
Aggregate Available 100,000
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Processes to identify, assess, and manage risks presented by cybersecurity threats are integrated into our overall ERM program and are informed by industry cybersecurity standards, including the NIST Cybersecurity Framework. Our CISO, in collaboration with the team responsible for the ERM program and the information security team, conducts a risk assessment process to regularly evaluate, monitor, manage, and mitigate cybersecurity risks. This process is also supported by periodic security testing and monitoring.

Our CISO reviews and contributes to the cybersecurity risk reporting that is provided to the Audit Committee of our Board on a quarterly basis. The quarterly updates include cybersecurity risk assessment results, which
include risks associated with the use of third-party service providers, and cover efforts to mitigate previously identified risks. Our CISO also oversees the cybersecurity incident response team and is responsible for updating our Board on cybersecurity incidents, including the mitigation and remediation of these incidents, should they occur.

As discussed within “Item 1A, Risk Factors”, we rely on service providers to process sensitive business information. As part of our risk management program, we have implemented a process to conduct a security review of third-party service providers, including through vendor questionnaires and contractual-related security requirements, as appropriate. In addition, we engage third-party experts, including external legal counsel and cybersecurity advisors, to assist in our identification and management of cybersecurity risks as needed. We have established an incident response process to assess, respond, and report in the event that a cybersecurity incident is detected. Management has also assembled a committee and an escalation protocol in connection with evaluating cybersecurity incidents for any potential disclosure obligations arising from such incidents.

Cybersecurity is incorporated into our overall business strategy as cybersecurity risks may have a negative impact on our business as outlined within “Item 1A, Risk Factors.” Although risks from cybersecurity threats have to date not materially affected us, our business strategy, results of operations or financial condition, we have, from time to time, experienced threats to and security incidents of our and our third-party vendors’ data and systems. For more information, please see “Item 1A, Risk Factors.”
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] Processes to identify, assess, and manage risks presented by cybersecurity threats are integrated into our overall ERM program and are informed by industry cybersecurity standards, including the NIST Cybersecurity Framework
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Our Board holds oversight responsibility over our strategy and risk management, including risks related to cybersecurity threats. Under the oversight of the Audit Committee, we have implemented an ERM framework that includes processes for identifying, assessing, and responding to cyber risk exposures. The enterprise risk management process is led by our chief compliance officer, where team members are responsible for working with cross-functional leadership at our Company to assess risks across designated verticals, including cybersecurity. The chief compliance officer reports on the ERM process to the Audit Committee of our Board regularly. In addition, we have established a management committee, or our Enterprise Risk and Compliance Committee, that meets regularly to review and report on the ERM framework to senior leadership.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Board holds oversight responsibility over our strategy and risk management, including risks related to cybersecurity threats.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] Our CISO reviews and contributes to the cybersecurity risk reporting that is provided to the Audit Committee of our Board on a quarterly basis.
Cybersecurity Risk Role of Management [Text Block] Our Chief Information Security Officer, or CISO, who has decades of experience in similar roles in the technology industry, leads and oversees our information security program, including our cybersecurity policies and information security team. This team is responsible for implementing processes designed to identify and protect company assets through prevention and detection controls. Through our cybersecurity program, we have developed prevention, response and recovery processes and procedures designed to address potential adverse impacts to our company should a cyber event or incident occur. We have implemented security awareness training which is required for all employees during onboarding and annually thereafter, and we conduct regular phishing simulations.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] This team is responsible for implementing processes designed to identify and protect company assets through prevention and detection controls. Through our cybersecurity program, we have developed prevention, response and recovery processes and procedures designed to address potential adverse impacts to our company should a cyber event or incident occur.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our Chief Information Security Officer, or CISO, who has decades of experience in similar roles in the technology industry, leads and oversees our information security program, including our cybersecurity policies and information security team.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
Our CISO reviews and contributes to the cybersecurity risk reporting that is provided to the Audit Committee of our Board on a quarterly basis. The quarterly updates include cybersecurity risk assessment results, which
include risks associated with the use of third-party service providers, and cover efforts to mitigate previously identified risks. Our CISO also oversees the cybersecurity incident response team and is responsible for updating our Board on cybersecurity incidents, including the mitigation and remediation of these incidents, should they occur.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation

The accompanying 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 SEC. The consolidated financial statements include the accounts of our Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments and assumptions that can affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from estimates.

Estimates, judgments, and assumptions in these consolidated financial statements include, but are not limited to, those related to revenue recognition, fair values and useful lives of assets acquired and liabilities assumed through business combinations, stock-based compensation expense, fair value measurements of warrants, the allowance for credit losses, liabilities associated with financial guarantees related to loan purchase activities, incremental borrowing rates applied in valuation of lease liabilities, accounting for income taxes, as well as the amortization period for deferred contract acquisition costs.
Fair Value Measurements
Fair Value Measurements

Certain assets and liabilities are carried at fair value under U.S. GAAP. These include cash and cash equivalents, marketable securities, and warrants to purchase common stock. We also measure certain assets and liabilities at fair value on a nonrecurring basis. These assets and liabilities primarily include assets acquired and liabilities assumed in business combinations and liabilities related to our obligation to perform under certain financial guarantees (See Note 2, "Summary of Significant Accounting Policies", "Assets and Liabilities Recorded with Loan Servicing Activities"). Impairments, if any, of property and equipment and/or intangible assets, are written down to fair value measured at such time on a nonrecurring basis. Other financial assets and liabilities are carried at cost with fair value disclosed, if required. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:
•Level 1—Quoted prices in active markets for identical assets or liabilities.

•Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.

•Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

The fair value of our marketable securities is determined based on quoted market prices of similar assets and classified as Level 2 within the fair value hierarchy. (See Note 3, “Financial Instruments”). The carrying values of accounts receivable, accounts payable, and accrued expenses approximate their fair values due to their short-term nature.
Concentration of Credit Risk and Significant Customers
Concentration of Credit Risk and Significant Customers

Financial instruments that subject us to significant concentrations of credit risk primarily consist of cash deposits and cash equivalents, marketable securities, and accounts receivable. We maintain a large portion of our cash deposits and cash equivalents primarily with one financial institution, which, at times, may exceed federally insured limits. We have not incurred any losses associated with this concentration of deposits. Our investment policy provides guidelines and limits regarding investment type, concentration, credit quality, and maturity aimed at maintaining sufficient liquidity to satisfy operating and working capital requirements along with strategic initiatives, preserving capital, and minimizing risk of capital loss while generating returns on our investments.
Accounts receivable are typically unsecured. We regularly monitor the creditworthiness of our customers and believe that we have adequately provided for exposure to potential credit losses.
Segment Information
Segment Information

Our operations constitute a single operating and reportable segment. Operating segments are defined as components of an enterprise for which discrete financial information is available and is evaluated regularly by the chief operating decision maker, or CODM, in deciding how to allocate resources and assess performance. Our CODM is our Chief Executive Officer who reviews financial information presented on a consolidated basis for the purposes of allocating resources and evaluating financial performance.
Revenue Recognition / Deferred Revenue
Revenue Recognition

We principally generate revenues from: (1) subscription services from our SaaS products, (2) financial technology solutions, including loan servicing activities, and (3) hardware and professional services.

Determining whether products and services are considered distinct performance obligations that should be accounted for separately as opposed to being combined requires judgment. We allocate total arrangement consideration at the inception of an arrangement to each performance obligation using the relative selling price allocation method based on each distinct performance obligation’s standalone selling price, or SSP. We allocate variable fees earned from financial technology services revenue to those distinct performance obligations where pricing practices are consistent with the allocation objective.

We measure revenues based on the amount of consideration we expect to receive in exchange for our products and/or services. Customer credits represent variable consideration which is estimated based on historical experience and accounted for as a reduction to the transaction price. We record reductions to revenues for our estimates of customer credits and an increase to liabilities in the period that the related revenue is earned. Sales taxes collected from customers and remitted to government authorities are excluded from revenue and deferred revenue.
Subscription Services

Subscription services revenue is generated from fees charged to customers for access to our software applications. Subscription services revenue is primarily based on a rate per location, and this rate varies depending on the number of software products purchased, hardware configuration, and employee count. The performance obligation is satisfied ratably over the contract period as the service is provided, commencing when the subscription service is made available to the customer. Our contracts with customers are generally for a term ranging from 12 to 36 months.

Financial Technology Solutions

Financial technology solutions revenue includes transaction-based payment processing services for customers who are charged a transaction fee for payment-processing. This transaction fee is generally calculated as a percentage of the total transaction amount processed plus a fixed per-transaction fee, which is earned as transactions are authorized and submitted for processing. We incur costs of interchange and network assessment fees, processing fees, and bank settlement fees to the third-party payment processors and financial institutions involved in settlement, which are recorded as costs of revenues. We satisfy our payment processing performance obligations and recognize the transaction fees as revenue upon authorization by the issuing bank and submission for processing. The transaction fees collected are recognized as revenue on a gross basis as we are the principal in the delivery of the managed payments solutions to the customers.

We have concluded that we are the principal in this performance obligation to provide a managed payment solution because we control the payment processing services before the customer receives them, perform authorization and fraud check procedures prior to submitting transactions for processing in the payment network, have sole discretion over which third-party acquiring payment processors we will use and are generally ultimately responsible to the customers for amounts owed if those acquiring payment processors do not fulfill their obligations. We generally have full discretion in setting prices charged to the customers. Additionally, we are obligated to comply with certain payment card network operating rules and contractual obligations under the terms of our registration as a payment facilitator and as a master merchant under our third-party acquiring payment processor agreements, which make us liable for the costs of processing the transactions for our customers and chargebacks and other financial losses if such amounts cannot be recovered from the customer.

Financial technology solutions revenue is recorded net of refunds and reversals initiated by the customer and is recognized upon authorization by the issuing bank and submission for processing.

Financial technology solutions revenue also includes fees earned from marketing and servicing loans to customers through our wholly-owned subsidiary, Toast Capital, that are originated by a third-party banking partner. In these arrangements, Toast Capital’s bank partner originates all loans, and Toast Capital then services the loans using Toast’s payments infrastructure to remit a fixed percentage of daily sales to our bank partner until the loan is repaid. Toast Capital earns fees for the underwriting and marketing of loans, which are recognized upon origination of the loan, and loan servicing fees, based on a percentage of each outstanding loan, which are recognized as servicing revenue as the servicing is delivered in accordance with ASC 860, Transfers and Servicing. Servicing revenue is adjusted for the amortization of servicing rights carried at amortized cost, included within other current assets. The marketing and facilitation fees earned upon execution of these loan agreements with its customers are recognized as revenue on a gross basis.

Hardware and Professional Services

Hardware revenue is generated from the sale of terminals, tablets, handhelds, and related devices and accessories, net of estimated returns. We invoice end-user customers upon shipment of the products. Revenue for hardware sales is recognized at the point in time when the transfer of control occurs, which is upon product shipment. We accept returns for hardware sales and estimate returns as a reduction to the transaction price, at the time of the sale based on historical returns data and experience.

Professional services revenue is generated from fees charged to customers for installation services, including business process mapping, configuration, and training. The duration of providing professional services to the customer is relatively short and completed in a matter of days. The performance obligation for professional services is considered to be satisfied upon the completion of the installation.
Deferred Revenue
Deferred revenue represents our obligation to transfer products or services to customers for which consideration has been received and consists of amounts deferred from subscription services contracts, professional service engagements, and customer deposits received in advance. Amounts deferred under subscription service contracts are recognized ratably over the respective term of the customer contract.
Cash, Cash Equivalents, Cash Held on Behalf of Customers and Restricted Cash
Cash, Cash Equivalents, Cash Held on Behalf of Customers and Restricted Cash

We define cash and cash equivalents as cash deposits, money market funds, and highly liquid investments with original maturities of 90 days or less at the time of purchase that are readily convertible to known amounts of cash.

Cash held on behalf of customers represents an asset that is restricted for the purpose of satisfying obligations to remit funds to various tax authorities to satisfy customers’ payroll, tax and other obligations. Cash held on behalf of customers is included within other current assets, and the corresponding customer funds obligation is included within accrued expenses and other current liabilities on our Consolidated Balance Sheets.

Restricted cash represents 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 (See Note 4, "Loan Servicing Activities and Acquired Loans Receivable, Net").
Marketable Securities
Marketable Securities

Our marketable securities are classified as available-for-sale. We classify our marketable securities as current assets, including those with maturities greater than 12 months, as they are available for use in current operations or to satisfy other liquidity requirements.

Marketable securities are carried at fair value, and we report unrealized gains and losses as a component of accumulated other comprehensive income (loss), net of tax, until the security is sold or matures, except for changes in the allowance for expected credit losses, which are recorded in our results of operations. Gains or losses realized from sales of marketable securities are computed based on the specific identification method and recognized as a component of other income, net in the accompanying Consolidated Statements of Operations.
We review marketable securities for impairment during each reporting period to determine if any of the securities have experienced an other-than-temporary decline in fair value. Credit losses are recognized up to the amount equal to the difference between the fair value and the amortized cost basis and recorded as an allowance for credit losses in the Consolidated Balance Sheets with a corresponding adjustment to earnings. Unrealized losses that are not related to credit losses are recognized in accumulated other comprehensive income (loss).
Accounts Receivable, net
Accounts Receivable, net

Accounts receivable, net consists of trade accounts receivable and unbilled receivables (which we collectively refer to as accounts receivable), net of an allowance for credit losses. Unbilled receivables represent revenue recognized on a contract in excess of billings.
We record an allowance for expected credit losses for accounts receivable upon the initial recognition of an accounts receivable balance in accordance with ASC 326, Financial Instruments - Credit Losses, or ASC 326. The allowance for credit losses represents the best estimate of lifetime expected credit losses, based on customer-specific information, historical loss rates and the impact of current and future conditions, including an assessment of customer creditworthiness, historical payment experience and the age of outstanding receivables. Accounts receivable balances are written off against the allowance for credit losses when we determine that the balances are not recoverable. Provisions for the allowance for expected credit losses are recorded in general and administrative expenses in the Consolidated Statements of Operations. We evaluate the allowance for credit losses for the entire portfolio of accounts receivable on an aggregate basis due to similar risk characteristics of our customers based on similar industry and historical loss patterns.
Inventory
Inventory

Inventory, which consists of tablets, printers, and networking equipment, are stated at the lower of cost or net realizable value and are accounted for using the average cost method. Substantially all inventory consists of finished goods. We evaluate ending inventory for estimated excess and obsolete inventory based primarily on
historical sales levels by product and projections of future demand, as well as the impact of changing product design and technology. We recognize outbound freight, handling costs, and damaged inventory as current-period costs.
Assets and Liabilities Recorded with Loan Servicing Activities
Assets and Liabilities Recorded with Loan Servicing Activities

We perform loan servicing activities through the Toast Capital loan program, where we partner with an industrial bank to provide working capital loans to qualified Toast customers based on the customer’s current payment processing and point of sale data. Under the program, our bank partner originates the loans and we market and service the loans and facilitate the loan application and origination process. These loans provide eligible customers with access to financing up to $300 thousand dollars, and loan repayment occurs automatically through a fixed percentage of every payment transaction processed on Toast’s platform.

Under the terms of our agreement with our industrial bank partner, we are obligated to purchase certain loans originated by our industrial banking partner in cases where the customer’s payments on the loan are missing or delayed for a defined period of time, and the loan is considered defaulted or delinquent (ineligible). Our obligation is limited to a specified percentage of the total loans originated, measured on a quarterly basis. The loan purchase, net of expected recoveries, reduces our potential liability with respect to the quarterly cohort of loans from which the ineligible loan originated. Refer to Note 2, "Summary of Significant Accounting Policies", "Acquired Loans Receivable, Net" for information on our accounting for purchased loans.

This obligation represents a financial guarantee with two aspects: a contingent liability accounted for under ASC 326 related to our contingent obligation to purchase ineligible loans, and a non-contingent liability accounted for under ASC 460, Guarantees, or ASC 460, related to our obligation to stand-ready to perform under the obligation, both of which are included in accrued expenses and other current liabilities in the Consolidated Balance Sheets. We measure a contingent liability for expected credit losses which is based on historical lifetime loss data, as well as macroeconomic forecasts, as applicable, applied to the loan portfolio. Probability of default curves are generated using historical default data for portfolios of guaranteed loans with similar risk characteristics. Loss severity estimates are generated using historical collections data for the loans purchased by us. Additionally, we may apply macroeconomic factors, such as forecasted trends in unemployment rates, which are sourced externally, using a single scenario that we believe is most appropriate to the economic conditions applicable to a particular period. Projected loss rates, inclusive of historical loss data and macroeconomic factors, as applicable, are applied to the outstanding principal amounts of the guaranteed loans. We may also include qualitative adjustments that incorporate incremental information not captured in the quantitative estimates of its current expected credit losses. The expected term of the loans guaranteed by us typically range from 90 to 360 days, and the reasonable and supportable forecast period reflects the expected period over which loans repay or become ineligible through delinquency or default, which varies based on loan term.
Contingent liabilities for expected credit losses are recorded as loans are originated, along with a corresponding non-cash charge recorded within general and administrative expense in the Consolidated Statements of Operations. We remeasure contingent liabilities each reporting period and reverse the liability upon loan purchase or upon the expiration of the obligation. We record a non-contingent liability at fair value as loans are originated, with a corresponding charge recorded within general and administrative expense in the accompanying Consolidated Statements of Operations. Subsequently, the liability is amortized on a straight-line basis over the average expected obligation term, which ranges from 90 to 360 days, and derecognized upon loan purchase. Fair value of a non-contingent liability is measured based on a discounted cash flow model under the income approach which reflects various inputs and assumptions, including the probability and amount of payments to be made under the guarantee based on probabilities of loan defaults and delinquency, as well as associated losses, and a discount rate reflecting our credit risk as the guarantor. The fair value measurement of the non-contingent liability is based on significant inputs not observable in the market and thus represents a Level 3 measurement within the fair value hierarchy.
Acquired Loans Receivable, net
Acquired Loans Receivable, net

We are obligated to purchase delinquent loans from our industrial bank partner. Such purchases, net of expected recoveries, are recorded as a reduction of contingent liabilities with respect to the quarterly cohort of
loans from which the defaulted loan originated. We account for purchased loans in accordance with the guidance for purchased credit deteriorated, or PCD, assets as the loans experienced credit quality deterioration between their origination and purchase, and write off their unpaid principal balance at the time of purchase as collectability is not probable. However, when we have an expectation of collecting cash flows, a negative allowance is established for purchased loans based on our historical experience of expected recoveries across our portfolio.
Deferred Contract Acquisition Costs
Deferred Contract Acquisition Costs

Based on ASC 340-40, Other Assets and Deferred Costs, we capitalize and amortize incremental costs of obtaining a contract, such as sales commissions and related payroll taxes, over the period we expect to derive benefits from the contract. The period of benefit for commissions paid for the acquisition of initial subscription services is determined by taking into consideration the initial estimated customer life and the technological life of our subscription services platform and related significant features. We adjust the carrying value of the deferred commissions assets periodically to account for customer churn, which occurs when customers have ceased operations or otherwise discontinued using our subscription services and financial technology solutions. Amortization expense is included in sales and marketing expenses in the Consolidated Statements of Operations.
Amortization Leasehold improvements are amortized over the shorter of their estimated useful lives or the remaining terms of the respective leases. Repair and maintenance costs are expensed as incurred, whereas major improvements are capitalized as additions to property and equipment.
Internal Use Software
We account for our internal use software and website development costs in accordance with the guidance in ASC 350-40, Internal-Use Software. The costs incurred prior to the application development stage and post implementation are expensed as incurred. Direct and incremental internal and external costs incurred during the application development stage are capitalized until the application is substantially complete and ready for its intended use, at which point amortization begins. Training and data conversion costs are expensed as incurred.
Operating Leases
Operating Leases

We determine if an arrangement is or contains a lease at contract inception. Lease agreements generally contain lease and non-lease components, which we elect to combine for all asset classes as a single lease component. Payments under lease arrangements are primarily fixed. Variable payments typically represent non-lease components, which consist primarily of payments for maintenance, utilities, and management fees. Variable payments included in lease arrangements are expensed as incurred and excluded from the right-of-use assets and lease liabilities.

Right-of-use assets and lease liabilities for operating leases are initially measured on the lease commencement date based on a present value of lease payments over the lease term, net of any lease incentives received by the lessor. Lease payments are discounted to present value using our estimated incremental borrowing rate, because a readily determinable implicit rate is not available. Our incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located.

The lease term includes the non-cancelable term, unless it is reasonably certain that a renewal or termination option will be exercised.
We do not record right-of-use assets and lease liabilities for leases with an initial term of 12 months or less and recognize lease expense on a straight-line basis over the lease term.
Business Combinations
We account for business combinations using the acquisition method of accounting in accordance with which assets acquired and liabilities assumed are recorded at their respective fair values on the acquisition date. The fair value of the consideration transferred in a business combination, including any contingent consideration, is allocated to the assets acquired and liabilities assumed based on their respective fair values. The excess of the consideration transferred over the fair values of the assets acquired and the liabilities assumed is recorded as goodwill. During the measurement period, which may be up to one year from the acquisition date or upon a final determination of asset and liability fair values, whichever occurs first, we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Any subsequent adjustments are recorded on the Consolidated Statements of Operations.
Goodwill Goodwill represents the excess of purchase price over the fair value of net tangible and identifiable intangible assets of the businesses acquired by us. We have one reporting unit and test goodwill for impairment at least annually in the fourth quarter or more frequently if indicators of potential impairment exist. If the carrying value of the reporting unit exceeds its fair value, an impairment loss is recognized for the excess of the carrying value of the reporting unit over its fair value.
During the quarter ended on December 31, 2025, we voluntarily changed the date of our annual goodwill impairment test from December 31 to October 1. We believe the change in goodwill impairment date does not result in a material change in the method of applying the accounting principle. This change provides us with additional time to complete the annual goodwill impairment testing in advance of year-end reporting. The change in accounting principle related to the annual testing date will not delay, accelerate or avoid an impairment charge. This change has been applied prospectively as retrospective application is deemed impracticable due to the inability to objectively determine the assumptions and significant estimates used in earlier periods without the benefit of hindsight.
Intangible Assets
Intangible assets primarily consist of finite-lived acquired technology and customer relationships. Finite-lived intangible assets are valued based on estimated future cash flows and amortized on a straight-line basis over their estimated useful lives. We evaluate the remaining estimated useful life of our intangible assets on an ongoing basis to determine whether events and circumstances warrant a revision to the remaining amortization period.

Acquired technology and customer relationships amortization is recorded within costs of revenue and sales and marketing expenses, respectively, within the Consolidated Statements of Operations.
Impairment of Long-lived Assets
We evaluate the recoverability of property and equipment and finite lived intangible assets for impairment whenever events or circumstances indicate that the carrying amounts of such assets may not be recoverable. For purposes of this assessment, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability is measured by comparing the carrying amount of an asset group to the estimated future undiscounted future net cash flows expected to be generated from their use and eventual disposal. If the carrying amount is not recoverable, the carrying amount is reduced to fair value and impairment loss is
recognized.
Cost of Revenue
Costs of Revenue

Costs of revenue primarily consists of costs associated with payment processing, personnel, and related infrastructure for operation of our cloud-based platform, data center operations, customer support, loan servicing and allocated overhead. Hardware costs consist of all product and shipping costs associated with tablets, printers, and other peripherals. Employee-related costs consist of salaries, benefits, bonuses, and stock-based compensation expense. Overhead consists of certain facilities costs, depreciation expense, and amortization costs associated with internally developed software and acquired intangible assets.

Payment processing costs include interchange fees, network assessment fees and fees paid to the acquiring payment processors.
Stock-Based Compensation Expense
Stock-Based Compensation Expense

We grant equity awards, including stock options which vest upon the satisfaction of service conditions and restricted stock units, or RSUs, which vest upon the satisfaction of service and/or performance conditions. We account for stock-based compensation expense related to equity awards in accordance with ASC 718, Compensation—Stock Compensation. Stock-based awards are measured at fair value on the grant date and compensation cost is recognized over the requisite service period, net of estimated forfeitures. We estimate a forfeiture rate to calculate the stock-based compensation expense for all awards based on an analysis of actual historical experience and expected employee attrition rates.

Compensation cost is recognized on a straight-line basis for stock-options, RSUs, and our 2021 Employee Stock Purchase Plan, or ESPP, and on an accelerated attribution basis for awards with a performance condition for each separately vesting portion of the award over the applicable vesting period and only if performance-based conditions are considered probable to be satisfied.

We use the Black-Scholes option-pricing model to determine the estimated fair value of stock option and ESPP awards based on the date of the grant. We estimate the following assumptions used in the option pricing model:

•Expected Volatility—We estimate the expected volatility of our Class A common stock based upon the weighted-average historical stock price volatility of our Class A Common stock and the average historical volatility of comparable publicly traded companies in our industry group over a period commensurate with the options' expected term.

•Expected Term—The expected term of our stock options represents the period that the stock-based awards are expected to be outstanding. We do not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. As such, we estimate the expected term of the options based on the simplified method determined based on the midpoint of the stock options vesting term and contractual expiration period.

•Risk-Free Interest Rate—The risk-free interest rate is based on the U.S. Treasury yield curve published as of the grant date, with maturities approximating the expected term of the options granted.

•Dividend Yield—We have not declared or paid dividends to date and do not anticipate declaring dividends. As such, the expected dividend is zero.
Advertising Costs We expense advertising costs as incurred.
Income Taxes
Income Taxes

We account for income taxes in accordance with ASC 740, Income Taxes. Under this method, deferred tax assets and liabilities are recognized based on temporary differences between the financial reporting and income tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. In addition, this method requires a valuation allowance against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.
We account for uncertain tax positions recognized in the consolidated financial statements by prescribing a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Interest and penalties, if applicable, related to uncertain tax positions would be recognized as a component of income tax expense.
Net Income (Loss) Per Share Attributable to Common Stockholders
Net Income (Loss) Per Share Attributable to Common Stockholders

Our Class A common stock and Class B common stock share proportionately, on a per share basis, in our net income (losses) and participate equally in the dividends on common stock, if declared. We allocate net income and losses attributable to common stock between the common stock classes on a one-to-one basis when computing net income (loss) per share attributable to common stockholders. As a result, basic and diluted net income (loss) per share of Class A common stock and Class B common stock are equivalent.

We compute net income (loss) per common share based on the two-class method required for multiple classes of common stock and participating securities. The two-class method requires income (loss) available to common stockholders for the period to be allocated between multiple classes of common stock and participating securities based upon their respective rights to receive dividends as if all income (loss) for the period had been distributed.
Basic net income (loss) per common share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of our Class A and Class B common stock outstanding, adjusted for outstanding shares that are subject to repurchase and Class A restricted common stock. Diluted income (loss) per common share gives effect to all potentially dilutive securities which are excluded from the computation if the effect is antidilutive.
Recently Adopted Accounting Pronouncements and Accounting Pronouncements Not Yet Adopted
Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires enhancement and further transparency to certain income tax disclosures, most notably the tax rate reconciliation and income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024 on either a prospective or retrospective basis, with early adoption permitted. The Company adopted ASU 2023-09 for the fiscal year ended December 31, 2025 on a prospective basis. See Note 12, “Income Taxes” for additional information.

Accounting Pronouncements Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), which requires disclosure of disaggregated information about specific categories underlying certain income statement expense line items in the footnotes to the financial statements for both annual and interim periods. This ASU is effective for fiscal year beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the impact of the adoption of this standard.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40), which provides targeted improvements to the accounting for internal-use software costs by replacing the existing project-stage model with a principles-based approach to determine when capitalization of costs should begin. This ASU is effective for all entities for annual reporting periods beginning after December 15, 2027 on a prospective basis, with early adoption permitted. We are currently evaluating the impact of the adoption of this standard.
v3.25.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Schedule of Property, Plant and Equipment, Net
Property and equipment are stated at cost, net of accumulated depreciation, and are depreciated using the straight-line method over their estimated lives, as follows:

Property and Equipment
Estimated Useful Life
Computer and other equipment
3 years
Office furniture and fixtures
3 years
Tooling and equipment
3 - 7 years
Capitalized software
3 years
Property and Equipment, Net (in millions)
December 31,
20252024
Capitalized software
$
202 
$
150 
Computer equipment
29 
21 
Leasehold improvements
11 
15 
Tooling and equipment
8 
5 
Furniture and fixtures
3 
4 
Construction in process
3 
3 
    Property and equipment, gross
256 
198 
Less: Accumulated depreciation and amortization
(151)
(100)
    Property and equipment, net
$
105 
$
98 
Schedule of Acquired Finite-Lived Intangible Assets by Major Class
The estimated useful lives for acquired technology and customer relationship intangible assets are as follows:
Estimated Useful Life
Acquired technology
3 - 10 years
Customer acquired intangible assets
5 - 6 years
v3.25.4
Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured on Recurring Basis
The following table presents information about our financial assets and liabilities that were 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):

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 
December 31, 2024
Level 1Level 2Level 3Total
Assets:
Money market funds
$
671 
$
— 
$
— 
$
671 
Commercial paper
— 
24 
— 
24 
Certificates of deposit
— 
3 
— 
3 
Corporate bonds
— 
100 
— 
100 
U.S. government agency securities
— 
7 
— 
7 
Treasury bonds
— 
233 
— 
233 
Asset-backed securities
— 
147 
— 
147 
$
671 
$
514 
$
— 
$
1,185 
Liabilities:
Warrants to purchase common stock
$
— 
$
— 
$
22 
$
22 
$
— 
$
— 
$
22 
$
22 
Schedule of Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value
The following table is an analysis of our debt securities in unrealized loss positions (in millions):
December 31, 2025
December 31, 2024
Fair Value
Unrealized Losses
Fair Value
Unrealized Losses
Commercial paper
$
20 
$
— 
$
13 
$
— 
Corporate bonds
47 
— 
33 
— 
U.S. government agency securities
— 
— 
7 
— 
Treasury bonds
— 
— 
102 
— 
Asset-backed securities
— 
— 
13 
— 
Total
$
67 
$
— 
$
168 
$
— 
Schedule of Marketable Securities
The fair values of the marketable securities by contractual maturities at December 31, 2025 were as follows (in millions):
December 31, 2025
Due within 1 year
$
333 
Due after 1 year through 5 years
291 
Due after 5 years and thereafter
14 
Total marketable securities
$
638 
Schedule of Measurement Inputs and Valuation Techniques The following table indicates the weighted-average assumptions made in estimating the fair value as of:
December 31, 2025December 31, 2024
Risk-free interest rate
3.5 
%
4.3 
%
Contractual term (in years)
1
2
Expected volatility
45.7 
%
57.5 
%
Expected dividend yield
— 
%
— 
%
Exercise price per share
$
17.5 
$
17.5 
Schedule of Liabilities Measured on Recurring and Nonrecurring Basis
The following table provides a roll-forward of the aggregate fair value of our common stock warrant liability for which fair value is determined using Level 3 inputs (in millions):
Common Stock Warrant Liability
Balance as of December 31, 2023
$
64 
Change in fair value
49 
Warrant extinguishment
(74)
Settlement
(17)
Balance as of December 31, 2024
22 
Change in fair value
(3)
Balance as of December 31, 2025
$
19 
v3.25.4
Loan Servicing Activities and Acquired Loans Receivable, Net (Tables)
 12 Months Ended
Dec. 31, 2025
Guarantees and Product Warranties [Abstract]  
Schedule of Off-Balance Sheet, Credit Loss, Liability
Changes in the contingent liability for expected credit losses for the fiscal years ended December 31, 2025 and 2024 were as follows (in millions):

Year Ended December 31,
20252024
Beginning balance
$
29 
$
29 
Credit loss expense
62 
45 
Reductions due to loan purchases
(45)
(45)
Ending balance
$
46 
$
29 
v3.25.4
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The changes in the carrying amount of goodwill for the periods presented were as follows (in millions):

Amount
Balance as of December 31, 2023
$
113 
Acquisitions
— 
Balance as of December 31, 2024
113 
Acquisitions
— 
Balance as of December 31, 2025
$
113 
Schedule of Finite-Lived Intangible Assets
Intangible assets, net consisted of the following (in millions):

As of December 31, 2025
Technology AssetsCustomer AssetsTotal
Gross carrying amount
$
40 
$
7 
$
47 
Accumulated amortization
(28)
(5)
(33)
Intangible assets, net
$
12 
$
2 
$
14 

As of December 31, 2024
Technology AssetsCustomer AssetsTotal
Gross carrying amount
$
40 
$
7 
$
47 
Accumulated amortization
(23)
(4)
(27)
Intangible assets, net
$
17 
$
3 
$
20 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
The total estimated future amortization of intangible assets as of December 31, 2025 was as follows (in millions):


Amount
2026
$
6 
2027
4 
2028
1 
2029
1 
2030
1 
Thereafter
1 
Total
$
14 
v3.25.4
Other Balance Sheet Information (Tables)
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Accounts Receivable, Net
Accounts Receivable, Net (in millions)
December 31,
20252024
Accounts receivable
$
103 
$
99 
Unbilled receivables
33 
24 
Less: Allowance for credit losses
(9)
(8)
Accounts receivable, net
$
127 
$
115 
Schedule of Accounts Receivable, net, Allowance for Credit Loss
A summary of changes in our allowance for credit losses with respect to our accounts receivable is as follows (in millions):

Year Ended December 31,
20252024
Beginning balance
$
(8)
$
(11)
Additions
(22)
(21)
Write offs
21 
24 
Ending balance
$
(9)
$
(8)
Schedule of Other Current Assets
Other Current Assets (in millions)
December 31,
20252024
Cash held on behalf of customers
$
159 
$
123 
Deferred contract acquisition costs, current (Note 10)
98 
74 
Prepaid expenses
39 
29 
Other
141 
99 
    Total other current assets
$
437 
$
325 
Schedule of Property, Plant and Equipment, Net
Property and equipment are stated at cost, net of accumulated depreciation, and are depreciated using the straight-line method over their estimated lives, as follows:

Property and Equipment
Estimated Useful Life
Computer and other equipment
3 years
Office furniture and fixtures
3 years
Tooling and equipment
3 - 7 years
Capitalized software
3 years
Property and Equipment, Net (in millions)
December 31,
20252024
Capitalized software
$
202 
$
150 
Computer equipment
29 
21 
Leasehold improvements
11 
15 
Tooling and equipment
8 
5 
Furniture and fixtures
3 
4 
Construction in process
3 
3 
    Property and equipment, gross
256 
198 
Less: Accumulated depreciation and amortization
(151)
(100)
    Property and equipment, net
$
105 
$
98 
Schedule of Accrued Expenses and Other Current Liabilities
Accrued Expenses and Other Current Liabilities (in millions)

December 31,
20252024
Accrued transaction-based costs
$
368 
$
312 
Customer funds obligation
159 
123 
Accrued expenses
74 
69 
Accrued payroll and bonus
133 
126 
Contingent liability for expected credit losses
46 
29 
Other liabilities
74 
56 
    Total accrued expenses and other current liabilities
$
854 
$
715 
v3.25.4
Stock-Based Compensation Expense (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Share-based Payment Arrangement, Expensed and Capitalized, Amount
Stock-based compensation expense recognized for the fiscal years ended December 31, 2025, 2024, and 2023, was as follows (in millions):

Year Ended December 31,
202520242023
Cost of revenue
$
34 
$
40 
$
43 
Sales and marketing
57 
54 
58 
Research and development
88 
84 
94 
General and administrative
60 
63 
82 
Restructuring expenses
3 
12 
— 
  Total stock based compensation
$
242 
$
253 
$
277 
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
The following table indicates the weighted-average assumptions made in estimating the fair value based on the Black-Scholes model as of December 31, 2025, 2024, and 2023:

Year Ended December 31,
202520242023
Risk-free interest rate
4.05
%
4.06
%
3.90
%
Expected term (in years)
6.09
6.09
6.08
Expected volatility
59
%
59
%
56
%
Expected dividend yield
0
%
0
%
0
%
Weighted-average fair value per share of common stock
$
34.00
$
24.53
$
18.01
Weighted-average fair value per share of options issued
$
20.16
$
14.51
$
10.24
Schedule of Share-based Payment Arrangement, Option, Activity
The following is a summary of stock option activity under our stock option plans:

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, 2024
28
$
9.42 
Granted
2 
34.00 
Exercised
(8)
7.81 
Forfeited
(1)
18.90 
Outstanding as of December 31, 2025
21
$
11.84 
Options vested and expected to vest as of
December 31, 2025
20 
$
11.49 
5.1
$
482 
Options exercisable as of December 31, 2025
17 
$
8.85 
4.6
$
458 
(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 the month of December 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 Share-based Payment Arrangement, Outstanding Award, Activity, Excluding Option We reflect RSUs as issued and outstanding shares of common stock when such units vest. The following table summarizes RSU activity as of December 31, 2025:
RSU
(in millions)
Weighted- Average Grant Date Fair Value (per share)
Outstanding balance as of December 31, 2024
22 
$
21.41 
Granted
6 
36.09 
Vested
(10)
22.37 
Forfeited
(3)
22.42 
Outstanding balance as of December 31, 2025
15 
$
26.80 
Expected to vest as of December 31, 2025
13 
$
26.19 
v3.25.4
Revenue from Contracts with Customers (Tables)
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Contract Liability
The following table summarizes the activity in deferred revenue (in millions):

Year Ended December 31,
20252024
Deferred revenue, beginning of period
$
63 
$
41 
Deferred revenue, end of period
$
69 
$
63 
Revenue recognized in the period from amounts included in deferred revenue at the beginning of period
$
59 
$
39 
Schedule of Deferred Contract Acquisition Costs
The following table summarizes the activity in deferred contract acquisition costs (in millions):

Year Ended December 31,
20252024
Beginning balance
$
172 
$
127 
Capitalization
147 
127 
Amortization
(99)
(82)
Ending balance
$
220 
$
172 
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income (Loss) Tax (Expense) Benefit
The components of income (loss) before income taxes are as follows (in millions):

Year Ended December 31,
202520242023
United States
$
318 
$
7 
$
(258)
Foreign
28 
15 
14 
Income (loss) before income taxes
$
346 
$
22 
$
(244)

The components of income tax (expense) benefit for the fiscal years ended December 31, 2025, 2024, and 2023, were as follows (in millions):
Year Ended December 31,
202520242023
Current state
$
(3)
$
(2)
$
(1)
Current foreign
(1)
(1)
(2)
Current tax expense
(4)
(3)
(3)
Deferred federal
— 
— 
1 
Deferred tax benefit
— 
— 
1 
Total income tax (expense) benefit
$
(4)
$
(3)
$
(2)
Schedule of Deferred Tax Assets and Liabilities
The tax effects of temporary differences that gave rise to a significant portion of the deferred tax assets and liabilities at December 31, 2025 and 2024, were as follows (in millions):
December 31,
20252024
Deferred tax assets:
Net operating loss carryforwards
$
246 
$
210 
Stock-based compensation expense
18 
25 
Credit carryforward
84 
63 
Accrued expenses and reserves
88 
65 
Charitable contributions
13 
11 
Deferred revenue
1 
1 
Depreciation
— 
2 
Capitalized R&D
46 
112 
Lease liability
7 
8 
Total deferred tax assets
503 
497 
Valuation allowance
(436)
(442)
Net deferred tax assets
67 
55 
Deferred tax liabilities:
Depreciation
(1)
— 
Amortization
(3)
(5)
Capitalized contract acquisition costs
(56)
(44)
Right-of-use asset
(7)
(6)
Total deferred tax liabilities
(67)
(55)
Net deferred tax asset (liability)
$
— 
$
— 
Schedule of Effective Income Tax Rate Reconciliation
Below is a tabular reconciliation of our effective tax rate to the United States federal income tax rate pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2025 (dollars in millions):
Year Ended December 31, 2025
Amount
Percent
U.S federal statutory tax rate
$
73 
21.0 
%
State and local income taxes, net of federal income tax effect (a)
2 
0.6 
%
Foreign tax effects
Other foreign jurisdictions
(4)
(1.3)
%
Effect of changes in tax laws or rates enacted in the current period
— 
— 
%
Effect of cross-border tax laws
Other
1 
0.5 
%
Tax Credits
Research and development tax credits
(17)
(5.0)
%
Changes in valuation allowances
(9)
(2.5)
%
Nontaxable or nondeductible items
Share based payment awards
(70)
(20.2)
%
Executive compensation
26 
7.5 
%
Other
2 
0.6 
%
Changes in unrecognized tax benefits
— 
— 
%
Effective Tax Rate
$
4 
1.2 
%
(a) During the year ended December 31, 2025 state taxes in California and Texas made up the majority (greater than 50 percent) of the tax effect in this category.
Below is a tabular reconciliation of our effective tax rate to the United States federal income tax rate, as previously disclosed, and prior to the adoption of ASU 2023-09, for the years ended December 31, 2024 and 2023:
December 31,
2024
2023
Tax provision at statutory rate
21.0%
21.0%
State tax - net of federal
(20.2)%
5.4%
Warrants
33.7%
0.3%
Non-deductible executive compensation
95.1%
(0.9)%
Non-deductible meals and entertainment
6.3%
(0.5)%
Research and development credits
(29.3)%
6.5%
Stock-based compensation expense
(304.9)%
3.6%
Change to uncertain tax positions
17.4%
—%
Global intangible low-taxed income
(8.6)%
(1.3)%
Other, net
(3.9)%
0.4%
Change in valuation allowance
204.9%
(35.3)%
Effective Tax Rate
11.5%
(0.8)%
Schedule of Unrecognized Tax Benefits Roll Forward
The following table reflects changes in unrecognized tax benefits for the periods presented below (in millions):

Year Ended December 31,
202520242023
Balance, beginning of year
$
5 
$
— 
$
— 
Additions for tax positions related to current period
2 
2 
— 
Additions for tax positions related to prior periods
— 
3 
— 
Lapse of statute of limitations / settlements
— 
— 
— 
Balance, end of year
$
7 
$
5 
$
— 
v3.25.4
Net Income (Loss) Per Share Attributable to Common Stockholders (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Net Income or Loss Per Share, Basic and Diluted
The following table sets forth the computation of net income (loss) per share attributable to common stockholders (in millions, except per share amounts):

Year Ended December 31,
202520242023
Numerator:
Net income (loss), basic
$
342 
$
19 
$
(246)
Less: Gain on change in fair value of warrant liability(1)
3 
— 
3 
Net income (loss), diluted
$
339 
$
19 
$
(249)
Denominator:
Weighted-average shares of common stock outstanding - basic
582 
559
532
Effect of dilutive securities:
Dilutive common share equivalents included in dilutive shares
24 
32 
— 
Warrants to purchase common stock(1)
1 
— 
1 
Weighted-average shares of common stock outstanding - diluted
607 
591
533
Net income (loss) per share, basic
$
0.59 
$
0.03 
$
(0.46)
Net income (loss) per share, diluted
$
0.56 
$
0.03 
$
(0.47)
(1) During the fiscal years ended December 31, 2025 and 2023, we recorded a gain on fair value remeasurement of our warrant liability. For purposes of computing diluted income (loss) per share, these gains were excluded from our net income (loss) and the corresponding weighted-average shares were also adjusted accordingly.
Schedule of Antidilutive Securities Excluded from Computation of Earnings or Loss Per Share
The following potential common shares were excluded from the calculation of diluted net income (loss) per share because their effect would have been antidilutive for the periods presented (in millions):

Year Ended December 31,
202520242023
Options to purchase Class A common stock and Class B common stock
1 
3 
48 
Unvested restricted stock
— 
— 
1 
Unvested restricted stock units
1 
2 
33 
Warrants to purchase common stock (2)
— 
1 
— 
Total
2 
6 
82 
(2) During the fiscal year ended December 31, 2024, we recorded a loss on fair value remeasurement of our warrant liability. These warrants were excluded from the computation of diluted net income (loss) per share due to their anti-dilutive effect.
v3.25.4
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
The following table sets out our measure of profit or loss and significant segment expenses (in millions):
Year Ended December 31,
2025
2024
2023
Revenue
$
6,153 
$
4,960 
$
3,865 
Costs of revenue(1)
(4,522)
(3,726)
(2,985)
Sales and marketing(1)
(511)
(412)
(340)
Research and development(1)
(280)
(263)
(261)
General and administrative(1)
(281)
(241)
(278)
Stock-based compensation and related payroll taxes
(255)
(256)
(288)
Other items(2)
38 
(43)
41 
Net income (loss)
$
342 
$
19 
$
(246)
(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. The amounts consist of both stock-based compensation (refer to Note 9, “Stock-Based Compensation” for tabular disclosure of amounts included within other significant segment expenses) and the corresponding payroll taxes.
(2) Other items include restructuring and restructuring-related expenses, interest income, net, change in fair value of warrant liability, other income, net and income tax (expense) benefit.
Schedule of Long-lived Assets by Geographic Areas
The following table sets forth the breakdown of long-lived assets based on geography (in millions):
December 31,
20252024
United States
$
115 
$
111 
Ireland
4 
5 
India
9 
6 
Other
4 
1 
Total long-lived assets
$
132 
$
123 
v3.25.4
Summary of Significant Accounting Policies - Narrative (Details)
 12 Months Ended
Dec. 31, 2025
USD ($)
segment
unit
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
shares
Subsidiary, Sale of Stock [Line Items]      
Number of operating segments | segment 1    
Number of reportable segment | segment 1    
Face amount per loan $ 300,000    
Number of reporting units | unit 1    
Goodwill impairment loss $ 0 $ 0 $ 0
Expected dividend 0    
Advertising expense $ 54,000,000 $ 43,000,000 $ 29,000,000
Allocation of between common stock (in shares) | shares     1
Subscription services | Minimum      
Subsidiary, Sale of Stock [Line Items]      
Revenue, term (in months) 12 months    
Subscription services | Maximum      
Subsidiary, Sale of Stock [Line Items]      
Revenue, term (in months) 36 months    
v3.25.4
Summary of Significant Accounting Policies - Schedule of Useful Lives (Details)
Dec. 31, 2025
Computer and other equipment  
Property, Plant and Equipment [Line Items]  
Useful life (in years) 3 years
Office furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Useful life (in years) 3 years
Tooling and equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life (in years) 3 years
Tooling and equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life (in years) 7 years
Capitalized software  
Property, Plant and Equipment [Line Items]  
Useful life (in years) 3 years
v3.25.4
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Intangible Assets (Details)
Dec. 31, 2025
Acquired technology | Minimum  
Finite-Lived Intangible Assets [Line Items]  
Intangible asset, useful life (in years) 3 years
Acquired technology | Maximum  
Finite-Lived Intangible Assets [Line Items]  
Intangible asset, useful life (in years) 10 years
Customer acquired intangible assets | Minimum  
Finite-Lived Intangible Assets [Line Items]  
Intangible asset, useful life (in years) 5 years
Customer acquired intangible assets | Maximum  
Finite-Lived Intangible Assets [Line Items]  
Intangible asset, useful life (in years) 6 years
v3.25.4
Financial Instruments - Schedule of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets $ 638  
Warrants to purchase common stock 19 $ 22
Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 1,614 1,185
Warrants to purchase common stock 19 22
Total liabilities 19 22
Level 1 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 951 671
Warrants to purchase common stock 0 0
Total liabilities 0 0
Level 2 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 663 514
Warrants to purchase common stock 0 0
Total liabilities 0 0
Level 3 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 0 0
Warrants to purchase common stock 19 22
Total liabilities 19 22
Money market funds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 951 671
Money market funds | Level 1 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 951 671
Money market funds | Level 2 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Money market funds | Level 3 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Commercial paper | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 96 24
Commercial paper | Level 1 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Commercial paper | Level 2 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 96 24
Commercial paper | Level 3 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Certificates of deposit | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 23 3
Certificates of deposit | Level 1 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Certificates of deposit | Level 2 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 23 3
Certificates of deposit | Level 3 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Corporate bonds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 261 100
Corporate bonds | Level 1 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Corporate bonds | Level 2 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 261 100
Corporate bonds | Level 3 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
U.S. government agency securities | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 7 7
U.S. government agency securities | Level 1 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
U.S. government agency securities | Level 2 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 7 7
U.S. government agency securities | Level 3 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Treasury bonds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 134 233
Treasury bonds | Level 1 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Treasury bonds | Level 2 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 134 233
Treasury bonds | Level 3 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Asset-backed securities | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 142 147
Asset-backed securities | Level 1 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0 0
Asset-backed securities | Level 2 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 142 147
Asset-backed securities | Level 3 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets $ 0 $ 0
v3.25.4
Financial Instruments - Schedule of Unrealized Loss Position, Fair Value (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value $ 67 $ 168
Unrealized Losses 0 0
Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value 20 13
Unrealized Losses 0 0
Corporate bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value 47 33
Unrealized Losses 0 0
U.S. government agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value 0 7
Unrealized Losses 0 0
Treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value 0 102
Unrealized Losses 0 0
Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value 0 13
Unrealized Losses $ 0 $ 0
v3.25.4
Financial Instruments - Scheduled Maturities of Marketable Securities (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Fair Value Disclosures [Abstract]  
Due within 1 year $ 333
Due after 1 year through 5 years 291
Due after 5 years and thereafter 14
Total marketable securities $ 638
v3.25.4
Financial Instruments - Schedule of Weighted Average Assumptions (Details) - Level 3 - Common Stock Warrant Liability
Dec. 31, 2025
$ / shares
yr
Dec. 31, 2024
yr
$ / shares
Risk-free interest rate    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Warrants, measurement inputs 0.035 0.043
Contractual term (in years)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Warrants, measurement inputs | yr 1 2
Expected volatility    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Warrants, measurement inputs 0.457 0.575
Expected dividend yield    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Warrants, measurement inputs 0 0
Exercise price per share    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Warrants, measurement inputs | $ / shares 17.5 17.5
v3.25.4
Financial Instruments - Schedule of Rollforward of Level 3 Inputs (Details) - Warrants - Common Stock Warrant Liability - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]    
Beginning balance $ 22 $ 64
Change in fair value (3) 49
Warrant extinguishment   (74)
Settlement   (17)
Ending balance $ 19 $ 22
v3.25.4
Financial Instruments - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jul. 03, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Class of Warrant or Right [Line Items]        
Warrant repurchase   $ 0 $ 61 $ 0
Change in fair value of warrant liability   3 (49) 3
Gain on extinguishment of warrant   $ 0 14 $ 0
Common Stock Warrant Liability | Common Class B        
Class of Warrant or Right [Line Items]        
Warrants repurchased (in shares) 5,000,000      
Warrant repurchase $ 61      
Outstanding warrants (in shares) 0      
Change in fair value of warrant liability     2  
Gain on extinguishment of warrant     $ 14  
Maximum number of shares that could be issued (in shares)   1,000,000 1,000,000  
v3.25.4
Loan Servicing Activities and Acquired Loans Receivable, Net - Schedule of Rollforward of Credit Losses (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Off-Balance Sheet, Credit Loss, Liability [Roll Forward]    
Beginning balance $ 29 $ 29
Credit loss expense 62 45
Reductions due to loan purchases (45) (45)
Ending balance $ 46 $ 29
v3.25.4
Loan Servicing Activities and Acquired Loans Receivable, Net - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Guarantor Obligations [Line Items]      
Restricted cash $ 71 $ 59 $ 55
Non-contingent stand-ready liability      
Guarantor Obligations [Line Items]      
Guarantee liability $ 18 $ 10  
v3.25.4
Goodwill and Intangible Assets - Schedule of Rollforward of Goodwill (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Goodwill [Roll Forward]    
Beginning balance $ 113 $ 113
Acquisitions 0 0
Ending balance $ 113 $ 113
v3.25.4
Goodwill and Intangible Assets - Schedule of Intangible Assets, Net (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount $ 47 $ 47
Accumulated amortization (33) (27)
Intangible assets, net 14 20
Technology Assets    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount 40 40
Accumulated amortization (28) (23)
Intangible assets, net 12 17
Customer Assets    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount 7 7
Accumulated amortization (5) (4)
Intangible assets, net $ 2 $ 3
v3.25.4
Goodwill and Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]    
2026 $ 6  
2027 4  
2028 1  
2029 1  
2030 1  
Thereafter 1  
Intangible assets, net $ 14 $ 20
v3.25.4
Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2025
May 06, 2025
May 05, 2025
Debt Instrument [Line Items]      
Letters of credit $ 3    
Revolving Credit Facility | 2021 Credit Facility | Line of Credit      
Debt Instrument [Line Items]      
Maximum borrowing capacity   $ 350 $ 330
Long-term line of credit 0    
Current borrowing capacity $ 347    
v3.25.4
Other Balance Sheet Information - Schedule of Accounts Receivable, Net (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Accounts receivable $ 103 $ 99  
Unbilled receivables 33 24  
Less: Allowance for credit losses (9) (8) $ (11)
Accounts receivable, net $ 127 $ 115  
v3.25.4
Other Balance Sheet Information - Schedule of Allowance for Credit Losses (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Accounts Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance $ (8) $ (11)
Additions (22) (21)
Write-offs 21 24
Ending balance $ (9) $ (8)
v3.25.4
Other Balance Sheet Information - Schedule of Other Current Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Cash held on behalf of customers $ 159 $ 123 $ 87
Deferred contract acquisition costs, current (Note 10) 98 74  
Prepaid expenses 39 29  
Other 141 99  
Total other current assets $ 437 $ 325  
v3.25.4
Other Balance Sheet Information - Schedule of Property and Equipment, Net (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 256 $ 198
Less: Accumulated depreciation and amortization (151) (100)
Property and equipment, net 105 98
Capitalized software    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 202 150
Computer equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 29 21
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 11 15
Tooling and equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 8 5
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 3 4
Construction in process    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 3 $ 3
v3.25.4
Other Balance Sheet Information - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Depreciation expense $ 8 $ 11 $ 10
Capitalized software 54 53  
Capitalized software and development costs 82 80  
Capitalized software, depreciation expense 49 30 16
Asset impairments $ 3 $ 2 $ 15
v3.25.4
Other Balance Sheet Information - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accrued transaction-based costs $ 368 $ 312
Customer funds obligation 159 123
Accrued expenses 74 69
Accrued payroll and bonus 133 126
Other liabilities 74 56
Contingent liability for expected credit losses 46 29
Total accrued expenses and other current liabilities $ 854 $ 715
v3.25.4
Common Stock - Narrative (Details)
 3 Months Ended 12 Months Ended
Dec. 31, 2021
Dec. 31, 2025
USD ($)
vote
shares
Dec. 31, 2024
USD ($)
shares
Dec. 31, 2023
USD ($)
shares
Feb. 29, 2024
USD ($)
Dec. 31, 2022
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Stock repurchase program, stock repurchased during period   $ 107,000,000 $ 56,000,000      
Total stock based compensation   $ 242,000,000 253,000,000 $ 277,000,000    
Pledge 1%            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Annual pledged percentage of maximum (as a percent)   1.00%        
Total stock based compensation   $ 6,000,000 $ 5,000,000 $ 10,000,000    
Common Class B            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of voting rights per share | vote   10        
Conversion of stock, share conversion | shares   1        
Ownership percentage of stock 66.67%          
Common Class A            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of voting rights per share | vote   1        
Conversion of stock, share conversion | shares   1        
Stock repurchase program, authorized amount         $ 250,000,000  
Stock repurchase program, stock repurchased during period   $ 107,000,000        
Stock repurchase program, remaining authorized repurchase amount   $ 87,000,000        
Common Class A | Class A and B Common Stock            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Conversions to Class A common stock (in shares) | shares   15,000,000 33,000,000 56,000,000    
Common Class A | Pledge 1%            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Common stock reserved for issuance (in shares) | shares   3,000,000        
Common Class A | Pledge 1% | Maximum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Common stock reserved for issuance (in shares) | shares           5,000,000
v3.25.4
Stock-Based Compensation Expense - Schedule of Stock-based Compensation (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock based compensation $ 242 $ 253 $ 277
Cost of revenue      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock based compensation 34 40 43
Sales and marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock based compensation 57 54 58
Research and development      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock based compensation 88 84 94
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock based compensation 60 63 82
Restructuring expenses      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock based compensation $ 3 $ 12 $ 0
v3.25.4
Stock-Based Compensation Expense - Narrative (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Aggregate intrinsic value of options exercised $ 278 $ 401 $ 137  
Options to purchase Class A common stock and Class B common stock        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Contractual life (in years) 10 years      
Unrecognized stock-based compensation expense $ 42      
Expected period for recognition (in years) 2 years 8 months 12 days      
Weighted average fair value per share of options granted (in dollars per share) $ 20.16 $ 14.51 $ 10.24  
Options to purchase Class A common stock and Class B common stock | Minimum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Requisite service period (in years) 4 years      
Options to purchase Class A common stock and Class B common stock | Maximum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Requisite service period (in years) 5 years      
Unvested restricted stock units        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Requisite service period (in years) 4 years      
Expected period for recognition (in years) 2 years 7 months 24 days      
Weighted average fair value per share of options granted (in dollars per share)   $ 24.77 $ 18.58  
Fair value of RUSs vested $ 405 $ 284 $ 208  
Unrecognized stock-based compensation expense related to options $ 289      
The 2021 Stock Option and Incentive Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Increase in number of shares reserved and available for issuance (as a percent)       5.00%
Common stock reserved for issuance (in shares) 119      
The 2021 Employee Stock Purchase Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Common stock reserved for issuance (in shares) 31      
The 2021 Employee Stock Purchase Plan | Common Class A        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Common stock reserved for issuance (in shares)       12
Stock reserved for future issuance, percentage of issued and outstanding stock (as a percent)       1.00%
Purchase shares of Class A common stock (as a percent) 85.00%      
v3.25.4
Stock-Based Compensation Expense - Schedule of Weighted Average Assumptions (Details) - Option - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free interest rate (as a percent) 4.05% 4.06% 3.90%
Expected term (in years) 6 years 1 month 2 days 6 years 1 month 2 days 6 years 29 days
Expected volatility (as a percent) 59.00% 59.00% 56.00%
Expected dividend yield (as a percent) 0.00% 0.00% 0.00%
Weighted-average fair value per share of common stock (in dollars per share) $ 34.00 $ 24.53 $ 18.01
Weighted-average fair value per share of options issued (in dollars per share) $ 20.16 $ 14.51 $ 10.24
v3.25.4
Stock-Based Compensation Expense - Schedule of Stock Option Activity (Details)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
$ / shares
shares
Number of Shares  
Beginning balance (in shares) | shares 28
Granted (in shares) | shares 2
Exercised (in shares) | shares (8)
Forfeited (in shares) | shares (1)
Ending balance (in shares) | shares 21
Options vested and expected to vest (in shares) | shares 20
Options exercisable (in shares) | shares 17
Weighted-Average Exercise Price  
Beginning balance (in dollars per share) | $ / shares $ 9.42
Granted (in dollars per share) | $ / shares 34.00
Exercised (in dollars per share) | $ / shares 7.81
Forfeited (in dollars per share) | $ / shares 18.90
Ending balance (in dollars per share) | $ / shares 11.84
Options vested and expected to vest, Weighted-average exercise price (in dollars per share) | $ / shares 11.49
Options exercisable, Weighted-average exercise price per share (in dollars per share) | $ / shares $ 8.85
Options vested and expected to vest (in years) 5 years 1 month 6 days
Options exercisable (in years) 4 years 7 months 6 days
Options vested and expected to vest | $ $ 482
Options exercisable | $ $ 458
v3.25.4
Stock-Based Compensation Expense - Schedule of RSU Activity (Details) - Restricted Stock Units
shares in Millions
 12 Months Ended
Dec. 31, 2025
$ / shares
shares
RSU  
Beginning balance (in shares) | shares 22
Granted (in shares) | shares 6
Vested (in shares) | shares (10)
Forfeited (in shares) | shares (3)
Ending balance (in shares) | shares 15
Expected to vest (in shares) | shares 13
Weighted-Average Grant Date Fair Value  
Beginning balance (in dollars per share) | $ / shares $ 21.41
Granted (in dollars per share) | $ / shares 36.09
Vested (in dollars per share) | $ / shares 22.37
Forfeited (in dollars per share) | $ / shares 22.42
Ending balance (in dollars per share) | $ / shares 26.80
Expected to vest ( in dollars per share) | $ / shares $ 26.19
v3.25.4
Revenue from Contracts with Customers - Schedule of Activity of Deferred Revenue (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]      
Deferred revenue $ 69 $ 63 $ 41
Revenue recognized in the period from amounts included in deferred revenue at the beginning of period $ 59 $ 39  
v3.25.4
Revenue from Contracts with Customers - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Remaining performance obligation, amount $ 999  
Deferred contract acquisitions costs, current 98 $ 74
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Remaining performance obligation, amount $ 936  
Remaining performance obligation, period (in months) 24 months  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Remaining performance obligation, period (in months)  
v3.25.4
Revenue from Contracts with Customers - Schedule of Deferred Contact Acquisitions Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Increase (Decrease) in Capitalized Contract Costs [Roll Forward]      
Beginning balance $ 172 $ 127  
Capitalization 147 127  
Amortization (99) (82) $ (62)
Ending balance $ 220 $ 172 $ 127
v3.25.4
Restructuring Plan (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restructuring and Related Activities [Abstract]        
Restructuring expenses $ 4 $ 12 $ 46 $ 0
v3.25.4
Income Taxes - Schedule of Components of Income (Loss) Before Provision for Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
United States $ 318 $ 7 $ (258)
Foreign 28 15 14
Income (loss) before income taxes $ 346 $ 22 $ (244)
v3.25.4
Income Taxes - Schedule of Components of Income Tax (Expense) Benefit (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Current state $ (3) $ (2) $ (1)
Current foreign (1) (1) (2)
Current tax expense (4) (3) (3)
Deferred federal 0 0 1
Deferred tax benefit 0 0 1
Total income tax (expense) benefit $ (4) $ (3) $ (2)
v3.25.4
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets:    
Net operating loss carryforwards $ 246 $ 210
Stock-based compensation expense 18 25
Credit carryforward 84 63
Accrued expenses and reserves 88 65
Charitable contributions 13 11
Deferred revenue 1 1
Depreciation 0 2
Capitalized R&D 46 112
Lease liability 7 8
Total deferred tax assets 503 497
Valuation allowance (436) (442)
Net deferred tax assets 67 55
Deferred tax liabilities:    
Depreciation (1) 0
Amortization (3) (5)
Capitalized contract acquisition costs (56) (44)
Right-of-use asset (7) (6)
Total deferred tax liabilities (67) (55)
Net deferred tax asset (liability) $ 0 $ 0
v3.25.4
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation for the Year Ended 2025 (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
U.S federal statutory tax rate $ 73    
State and local income taxes, net of federal income tax effect 2    
Effect of changes in tax laws or rates enacted in the current period 0    
Other 1    
Research and development tax credits (17)    
Changes in valuation allowances (9)    
Share based payment awards (70)    
Executive compensation 26    
Other 2    
Changes in unrecognized tax benefits 0    
Total income tax (expense) benefit $ 4 $ 3 $ 2
Percent      
U.S federal statutory tax rate 21.00% 21.00% 21.00%
State and local income taxes, net of federal income tax effect 0.60% (20.20%) 5.40%
Effect of changes in tax laws or rates enacted in the current period 0.00%    
Other 0.50%    
Research and development tax credits (5.00%)    
Changes in valuation allowances (2.50%) 204.90% (35.30%)
Share based payment awards (20.20%)    
Executive compensation 7.50% 95.10% (0.90%)
Other 0.60%    
Changes in unrecognized tax benefits 0.00% 17.40% 0.00%
Effective Tax Rate 1.20% 11.50% (0.80%)
Other foreign jurisdictions      
Amount      
Other foreign jurisdictions $ (4)    
Percent      
Other foreign jurisdictions (1.30%)    
v3.25.4
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation for the Year Ended 2024 and 2023 (Details)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Tax provision at statutory rate 21.00% 21.00% 21.00%
State tax - net of federal 0.60% (20.20%) 5.40%
Warrants   33.70% 0.30%
Non-deductible executive compensation 7.50% 95.10% (0.90%)
Non-deductible meals and entertainment   6.30% (0.50%)
Research and development credits   (29.30%) 6.50%
Stock-based compensation expense   (304.90%) 3.60%
Change to uncertain tax positions 0.00% 17.40% 0.00%
Global intangible low-taxed income   (8.60%) (1.30%)
Other, net   (3.90%) 0.40%
Change in valuation allowance (2.50%) 204.90% (35.30%)
Effective Tax Rate 1.20% 11.50% (0.80%)
v3.25.4
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Tax Credit Carryforward [Line Items]      
Income tax expense $ 4 $ 3 $ 2
State income tax expense (benefit) 3    
Foreign income tax expense (benefit) 1    
Increase in valuation allowance (6) $ 45 $ 87
Unrecognized tax benefits that would impact effective tax rate 7    
Indefinite Carryforward Period      
Tax Credit Carryforward [Line Items]      
Operating loss carryforwards 155    
Tax Year 2026      
Tax Credit Carryforward [Line Items]      
Operating loss carryforwards 718    
Federal Tax Authority      
Tax Credit Carryforward [Line Items]      
Operating loss carryforwards 928    
Tax credit carryforwards 70    
Federal Tax Authority | Indefinite Carryforward Period      
Tax Credit Carryforward [Line Items]      
Operating loss carryforwards 843    
Federal Tax Authority | Tax Year 2037      
Tax Credit Carryforward [Line Items]      
Operating loss carryforwards 85    
State and Local Jurisdiction      
Tax Credit Carryforward [Line Items]      
Operating loss carryforwards 873    
Tax credit carryforwards $ 26    
v3.25.4
Income Taxes - Schedule of Unrecognized Tax Benefits Roll Forward (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Unrecognized Tax Benefits [Roll Forward]      
Balance, beginning of year $ 5 $ 0 $ 0
Additions for tax positions related to current period 2 2 0
Additions for tax positions related to prior periods 0 3 0
Lapse of statute of limitations / settlements 0 0 0
Balance, end of year $ 7 $ 5 $ 0
v3.25.4
Net Income (Loss) Per Share Attributable to Common Stockholders - Schedule of Net Income (Loss) Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Numerator:      
Net income (loss), basic $ 342 $ 19 $ (246)
Less: Gain on change in fair value of warrant liability 3 0 3
Net income (loss), diluted $ 339 $ 19 $ (249)
Denominator:      
Weighted-average shares of common stock outstanding - basic (in shares) 582 559 532
Dilutive common share equivalents included in dilutive shares (in shares) 24 32 0
Effect of dilutive securities:      
Warrants to purchase Class B common stock (in shares) 1 0 1
Weighted-average shares of common stock outstanding - diluted (in shares) 607 591 533
Net income (loss) per share - basic (in dollars per share) $ 0.59 $ 0.03 $ (0.46)
Net income (loss) per share - diluted (in dollars per share) $ 0.56 $ 0.03 $ (0.47)
v3.25.4
Net Income (Loss) Per Share Attributable to Common Stockholders - Schedule of Antidilutive Shares (Details) - shares
shares in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive shares excluded from computation of earnings per share (in shares) 2 6 82
Options to purchase Class A common stock and Class B common stock      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive shares excluded from computation of earnings per share (in shares) 1 3 48
Unvested restricted stock      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive shares excluded from computation of earnings per share (in shares) 0 0 1
Unvested restricted stock units      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive shares excluded from computation of earnings per share (in shares) 1 2 33
Warrants to purchase Class B common stock      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive shares excluded from computation of earnings per share (in shares) 0 1 0
v3.25.4
Segment Information - Narrative (Details)
 12 Months Ended
Dec. 31, 2025
segment
Segment Reporting [Abstract]  
Number of reportable segment 1
Number of operating segments 1
v3.25.4
Segment Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Revenues $ 6,153 $ 4,960 $ 3,865
Costs of revenue (4,560) (3,770) (3,031)
Sales and marketing (571) (470) (401)
Research and development (374) (351) (358)
General and administrative (344) (307) (362)
Net income (loss) 342 19 (246)
Reportable Segment      
Segment Reporting Information [Line Items]      
Revenues 6,153 4,960 3,865
Costs of revenue (4,522) (3,726) (2,985)
Sales and marketing (511) (412) (340)
Research and development (280) (263) (261)
General and administrative (281) (241) (278)
Stock-based compensation and related payroll taxes (255) (256) (288)
Other items 38 (43) 41
Net income (loss) $ 342 $ 19 $ (246)
v3.25.4
Segment Information - Schedule of Long-lived Assets by Geographic Areas (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets $ 132 $ 123
United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets 115 111
Ireland    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets 4 5
India    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets 9 6
Other    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets $ 4 $ 1
v3.25.4
Commitment and Contingencies (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Hardware Suppliers  
Unrecorded Unconditional Purchase Obligation [Line Items]  
Purchase commitment/contractual commitments $ 106
Cloud Service Providers And Other Vendors  
Unrecorded Unconditional Purchase Obligation [Line Items]  
Purchase commitment/contractual commitments 157
2026 90
Thereafter $ 67
v3.25.4
Retirement Plan (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Retirement Benefits [Abstract]      
Defined contribution plan cost $ 25 $ 21 $ 19
v3.25.4
Subsequent Events (unaudited) (Details) - USD ($)
shares in Millions, $ in Millions
 2 Months Ended 12 Months Ended
Feb. 17, 2026
Dec. 31, 2025
Dec. 31, 2024
Feb. 10, 2026
Subsequent Event [Line Items]        
Share repurchases   $ 107 $ 56  
Subsequent Event        
Subsequent Event [Line Items]        
Increase in authorized share repurchase program amount       $ 500
Repurchases of common stock (in shares) 3      
Share repurchases $ 85      
Stock repurchase program, remaining authorized repurchase amount $ 501