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Toast Inc (TOST)
NYSE:TOST
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Toast Inc (TOST) AI Stock Analysis

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TOST

Toast Inc

(NYSE:TOST)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
$49.00
▲(31.83% Upside)
Toast Inc's overall stock score of 73 reflects strong financial performance and a positive earnings call, indicating robust growth and strategic expansion. However, high valuation metrics and mixed technical indicators suggest caution. The company's focus on innovation and market expansion supports its growth potential, but investors should be mindful of valuation concerns.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and profitability.
International Expansion
Expanding into international markets like Australia diversifies revenue streams and enhances global presence, positioning Toast for sustainable growth.
Partnerships
Strategic partnerships with major players like American Express enhance service offerings and competitive positioning, driving long-term customer value.
Negative Factors
Margin Pressure
Anticipated margin pressures could impact profitability, highlighting the need for cost management to maintain financial health.
Gross Payment Volume
A decline in GPV per location suggests challenges in maintaining transaction volume, which could affect revenue growth if not addressed.
Valuation Concerns
High valuation metrics may indicate overvaluation risks, potentially limiting future stock performance if growth expectations are not met.

Toast Inc (TOST) vs. SPDR S&P 500 ETF (SPY)

Toast Inc Business Overview & Revenue Model

Company DescriptionToast, Inc. operates a cloud-based and digital technology platform for the restaurant industry in the United States and Ireland. The company offers Toast Point of Sale (POS), a hardware product; Toast Order & Pay, which allows guests to order and pay from their mobile devices; Toast Flex that is used for on-counter order and pay, as well as used as a server station, guest kiosk, kitchen display system, or order fulfillment station; Toast Go, a handheld POS device that enhances the table turn times through tableside ordering and payment acceptance; and Toast Tap, a card reader. It also provides kitchen display system software that connects the front of the house with the kitchen staff; multi-location management software, which allows customers to manage and standardize their operations and configure menus; xtraCHEF that provides back-office tools; and Toast Flex for Kitchen, a larger format mountable piece of hardware that can be used as a kitchen screen. In addition, the company offers Toast Online Ordering & Toast TakeOut app, a software-based platform that provides restaurants to take off-premises orders directly through their branded website; First-Party Delivery services for restaurants to manage a fleet of drivers, and customize delivery hours, zones, fees, and minimum ticket sizes; Toast Delivery Services, which enables restaurants to utilize a partner network of delivery drivers; and Toast Delivery Partners services. Further, it provides loyalty programs and gift cards; payroll and team management products; business owner policy insurance and restaurant-specific add-ons; payment processing solutions; loans advanced to restaurants; purchase financing; reporting and analytics solutions; Toast Partner Connect that allows customers to discover, select, and connect their restaurant to its partners; and bi-directional APIs. The company was incorporated in 2011 and is headquartered in Boston, Massachusetts.
How the Company Makes MoneyToast generates revenue through several key streams. The primary source is subscription and transaction-based fees from its POS system, which restaurants pay to access the software and hardware tools necessary for managing sales and operations. Additional revenue comes from services such as payment processing, where Toast takes a percentage of each transaction processed through its platform. The company also offers a range of add-on services, including marketing solutions and loyalty programs, which provide further monetization opportunities. Significant partnerships with payment processors and hardware vendors enhance its product offerings, allowing Toast to expand its market reach and drive additional revenue growth.

Toast Inc Key Performance Indicators (KPIs)

Any
Any
Gross Payment Volume
Gross Payment Volume
Measures the total dollar value of transactions processed, indicating the scale of operations and market reach, as well as potential revenue growth.
Chart InsightsToast Inc. has seen a robust increase in Gross Payment Volume, reflecting strong expansion efforts and strategic growth. The recent earnings call highlighted a record addition of 8,500 new locations and international expansion into Australia, driving this upward trend. However, there are slight challenges with a 1% decline in GPV per location, suggesting potential issues in transaction volume growth at existing sites. Despite this, the company's focus on scaling and strategic partnerships, like with American Express, positions it well for continued momentum in the fintech and subscription sectors.
Data provided by:Main Street Data

Toast Inc Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance in terms of growth and profitability, with significant expansion in new markets and successful partnerships. Despite some challenges, such as a slight decline in GPV per location and anticipated margin pressures, the overall outlook remains positive.
Q2-2025 Updates
Positive Updates
Record Net Location Additions
Toast achieved a record addition of 8,500 net new locations, indicating strong growth and demand for its platform.
Significant Recurring Gross Profit Growth
Recurring gross profit increased by 35% year-over-year, showcasing the company's strong financial performance.
Expansion into International Markets
Toast launched in Australia, marking its fourth international market, and continues to expand its global presence.
Partnership with American Express
Toast announced a partnership with American Express to integrate reservation listings from Resy, Tock, and Toast Tables into its app, enhancing its service offerings.
Strong Adjusted EBITDA Performance
Adjusted EBITDA reached $161 million, with a margin expansion of 8 percentage points year-over-year to 35%.
Successful Enterprise and Retail Segment Growth
Toast crossed 10,000 live locations across its enterprise, food and beverage retail, and international segments, with these segments on track to surpass $100 million in ARR by the end of the year.
Negative Updates
Lower GPV per Location
Gross Payment Volume per location was down 1% year-over-year, indicating challenges in maintaining transaction volume per site.
Expected Margin Pressure in Q4
The company anticipates lower margins in Q4 due to seasonal factors and higher tariff expenses.
Company Guidance
During the call, Toast provided guidance for the third quarter of 2025, expecting total subscription and fintech gross profit to grow between 23% to 26% year-over-year, with adjusted EBITDA projected to be between $140 million and $150 million. For the full year, Toast raised its outlook to reflect strong performance, now anticipating 29% growth in fintech and subscription gross profit and $575 million in adjusted EBITDA, translating to a margin of 32%, an increase of 5 percentage points compared to 2024. The company's strategy involves investing in growth areas, particularly in expanding their reach in international markets like Australia and increasing their presence in new customer segments like enterprise and retail. Additionally, Toast aims to enhance customer adoption and differentiation through data and AI, as demonstrated by their development of new products like Toast Go 3 and AI-powered features such as ToastIQ.

Toast Inc Financial Statement Overview

Summary
Toast Inc's financial statements reflect strong performance with impressive revenue and profit growth, financial stability with low leverage, and robust cash flow generation. The positive trends in profitability and cash flow indicate a well-managed business with a promising outlook.
Income Statement
85
Very Positive
Toast Inc has shown impressive revenue growth with a TTM (Trailing-Twelve-Months) growth rate of 5.9%, indicating strong market demand. The gross profit margin has improved to 25.2%, reflecting efficient cost management. Net profit margin has significantly increased to 4.1%, showcasing enhanced profitability. The EBIT and EBITDA margins have also improved, indicating better operational efficiency. Overall, the income statement reflects a positive growth trajectory and profitability improvement.
Balance Sheet
78
Positive
The balance sheet of Toast Inc is strong, with a low debt-to-equity ratio of 0.01, indicating minimal leverage and financial stability. The return on equity (ROE) has improved to 13.9%, reflecting effective use of equity to generate profits. The equity ratio stands at 65.7%, showing a solid equity base. Overall, the balance sheet indicates financial stability and efficient capital management.
Cash Flow
82
Very Positive
Toast Inc has demonstrated robust cash flow performance with a free cash flow growth rate of 24.5% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 0.62 and free cash flow to net income ratio of 0.91 reflect efficient cash conversion. Overall, the cash flow statement highlights strong cash generation and effective cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.53B4.96B3.87B2.73B1.71B823.00M
Gross Profit1.39B1.19B834.00M511.00M314.00M140.00M
EBITDA255.00M108.00M-255.00M-360.00M-207.00M-209.00M
Net Income224.00M19.00M-246.00M-275.00M-487.00M-248.00M
Balance Sheet
Total Assets2.77B2.41B1.96B1.76B1.74B775.96M
Cash, Cash Equivalents and Short-Term Investments1.70B1.42B1.12B1.02B1.27B581.82M
Total Debt19.00M24.00M44.00M94.00M99.00M171.71M
Total Liabilities949.00M863.00M764.00M663.00M644.00M1.25B
Stockholders Equity1.82B1.54B1.19B1.10B1.09B-471.00M
Cash Flow
Free Cash Flow508.00M306.00M93.00M-189.00M-17.00M-161.00M
Operating Cash Flow558.00M360.00M135.00M-156.00M2.00M-125.00M
Investing Cash Flow-22.00M-39.00M-86.00M-98.00M-503.00M-36.00M
Financing Cash Flow22.00M18.00M63.00M38.00M759.00M594.00M

Toast Inc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price37.17
Price Trends
50DMA
41.68
Negative
100DMA
42.86
Negative
200DMA
39.89
Negative
Market Momentum
MACD
-1.50
Negative
RSI
36.00
Neutral
STOCH
67.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TOST, the sentiment is Negative. The current price of 37.17 is below the 20-day moving average (MA) of 38.27, below the 50-day MA of 41.68, and below the 200-day MA of 39.89, indicating a bearish trend. The MACD of -1.50 indicates Negative momentum. The RSI at 36.00 is Neutral, neither overbought nor oversold. The STOCH value of 67.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TOST.

Toast Inc Risk Analysis

Toast Inc disclosed 60 risk factors in its most recent earnings report. Toast Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Toast Inc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$2.23B23.2113.86%13.02%-2.57%
73
Outperform
$21.54B108.4014.51%26.11%
73
Outperform
$6.96B28.9419.00%23.86%79.35%
68
Neutral
$18.90B29.1720.58%8.94%22.30%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
$19.99B108.756.85%18.11%
54
Neutral
$2.26B56.63-6.51%17.47%-544.72%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TOST
Toast Inc
36.70
7.72
26.64%
FFIV
F5 Networks
342.58
120.53
54.28%
NTNX
Nutanix
71.15
7.98
12.63%
FOUR
Shift4 Payments
79.50
-14.01
-14.98%
PAYO
Payoneer
6.15
-1.59
-20.54%
MQ
Marqeta
5.09
0.16
3.25%

Toast Inc Corporate Events

Executive/Board ChangesShareholder Meetings
Toast Inc Holds Annual Stockholders Meeting
Neutral
Jun 17, 2025

On June 13, 2025, Toast Inc held its annual meeting of stockholders via live audio webcast. During the meeting, stockholders voted on three proposals. Paul Bell and Hilarie Koplow-McAdams were elected as Class I directors for a three-year term. Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Additionally, the compensation of the company’s named executive officers for the fiscal year ended December 31, 2024, was approved on an advisory, non-binding basis.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 03, 2025