Financial PerformanceShares of TOST have come under pressure following management commentary that margin expansion will be around 100-200 basis points in fiscal year '25, which is below current Street expectations of 380 basis points.
Market SentimentInvestors are concerned about the quality of the earnings beat, which was driven by pricing and one-time benefits, creating uncertainty about its premium valuation.
Valuation ConcernsTOST shares are getting expensive at nearly 11x EV/R normalized revenue, indicating potential overvaluation concerns.