Toast Turned $1.91 Billion in Revenue Into $154 Million in Profit. The Payments Half Is Doing the Heavy Lifting.

Toast reported Q2 revenue of $1.91 billion with net income of $154 million (80.7% margin). The payments business drives profitability with $360 million in gross profit, while the subscription services segment has the highest margins at 78% gross margin. The hardware segment operates at negative margins as a customer acquisition strategy. Toast's business model leverages payments to acquire customers for higher-margin subscription services.