Toast Inc (TOST) AI Stock Analysis

• Market Cap: $21.15B
• Dividend Yield: N/A
• Average Volume (3M): 8.76M
• Price to Earnings (P/E): 80.9
• Beta (1Y): 1.42
• Revenue Growth: 25.76%
• EPS Growth: N/A
• Country: US
• Employees: 5,700
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.27
• Shares Outstanding: 515,000,000
• 10 Day Avg. Volume: 7,528,428
• 30 Day Avg. Volume: 8,755,057
• PEG Ratio: -10.00
• Price to Book (P/B): 13.19
• Price to Sales (P/S): 4.11
• P/FCF Ratio: 66.59
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 3.48
• Enterprise Value/Gross Profit: 13.57
• Enterprise Value/Ebitda: 62.56
• 1Y Price Target: $47.12
• Price Target Upside: 33.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): 1.03
• Revenue Forecast (FY): $6.14B

• Rating: 73 Outperform
• Price Target: $39.00 ▲(10.54% Upside)

Toast Inc's overall stock score reflects strong financial performance and positive earnings call insights, which are the most significant factors. The company's strategic growth and innovation initiatives further bolster its outlook. However, the high P/E ratio and mixed technical indicators suggest caution. The recent board appointment adds a positive strategic dimension, but the valuation concerns and technical analysis temper the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Toast's offerings, enhancing its market position and supporting long-term financial health.

Market Expansion

Expansion into new markets and securing high-profile clients strengthens Toast's competitive edge and growth prospects.

Product Innovation

Innovative product launches enhance Toast's service offerings and customer value, driving adoption and long-term growth.

Negative Factors

Operational Margins

Low operational margins suggest room for efficiency improvements, which could impact profitability if not addressed.

Consumer Spending Risks

Potential volatility in consumer spending could affect revenue consistency and financial performance.

Past Negative Equity

Historical negative equity highlights financial risks that may re-emerge if not managed, affecting long-term stability.

Toast Inc Business Overview & Revenue Model

Company Description

Toast, 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 Money

Toast Inc generates revenue primarily through its subscription-based model, where restaurants pay for access to its POS software and additional services on a monthly basis. Key revenue streams include software subscriptions, hardware sales (such as POS terminals and peripherals), payment processing fees, and additional offerings like Toast Payroll and Toast Marketing. The company also benefits from strategic partnerships with various payment processors and service providers, enhancing its service offerings and driving further revenue. Additionally, Toast earns transaction-based fees from payments processed through its platform, which adds a significant layer to its earnings.

Toast Inc Financial Statement Overview

Summary

Toast Inc exhibits strong financial health with consistent revenue growth, improved profitability, and effective cash flow management. The company's low leverage and improved return on equity highlight its financial stability. While operational margins can be further optimized, the positive trajectory in financial metrics suggests a promising outlook.

Income Statement

Toast Inc has shown impressive revenue growth over the years, with a TTM revenue growth rate of 5.93% and a significant improvement from previous years. The gross profit margin has improved to 25.66% in TTM, indicating better cost management. Net profit margin has also improved to 4.66% in TTM, reflecting enhanced profitability. However, the EBIT and EBITDA margins, though improved, remain relatively low, suggesting room for operational efficiency improvements.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.009 in TTM, indicating minimal leverage and financial risk. The return on equity has improved significantly to 13.88% in TTM, showcasing effective use of equity to generate profits. The equity ratio stands at a healthy level, reflecting a solid capital structure. However, past years showed negative equity, which could be a concern if not managed well.

Cash Flow

Toast Inc has demonstrated robust cash flow management with a free cash flow growth rate of 11.02% in TTM. The operating cash flow to net income ratio of 0.67 and free cash flow to net income ratio of 0.92 in TTM indicate strong cash generation relative to net income. The company has transitioned from negative to positive free cash flow, which is a positive sign for future liquidity and investment capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.86B	4.96B	3.87B	2.73B	1.71B	823.00M
Gross Profit	1.50B	1.19B	834.00M	511.00M	314.00M	140.00M
EBITDA	326.00M	108.00M	-255.00M	-360.00M	-207.00M	-209.00M
Net Income	273.00M	19.00M	-246.00M	-275.00M	-487.00M	-248.00M
Balance Sheet
Total Assets	2.97B	2.46B	1.96B	1.76B	1.74B	775.96M
Cash, Cash Equivalents and Short-Term Investments	1.86B	1.42B	1.12B	1.02B	1.27B	581.82M
Total Debt	18.00M	34.00M	44.00M	94.00M	99.00M	1.02B
Total Liabilities	957.00M	918.00M	764.00M	663.00M	644.00M	1.25B
Stockholders Equity	2.01B	1.54B	1.19B	1.10B	1.09B	-470.98M
Cash Flow
Free Cash Flow	564.00M	306.00M	93.00M	-189.00M	-17.00M	-161.00M
Operating Cash Flow	614.00M	360.00M	135.00M	-156.00M	2.00M	-125.00M
Investing Cash Flow	-35.00M	-39.00M	-86.00M	-98.00M	-503.00M	-36.00M
Financing Cash Flow	81.00M	18.00M	63.00M	38.00M	759.00M	594.00M

Toast Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 35.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TOST, the sentiment is Neutral. The current price of 35.28 is above the 20-day moving average (MA) of 34.42, below the 50-day MA of 36.04, and below the 200-day MA of 39.29, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 49.95 is Neutral, neither overbought nor oversold. The STOCH value of 60.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TOST.

Toast Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FFIV	74 Outperform	$15.26B	22.26	20.60%	―	9.66%	23.87%
TOST	73 Outperform	$21.15B	80.92	15.96%	―	25.76%	―
FOUR	69 Neutral	$6.11B	32.27	15.52%	―	23.16%	27.38%
PAYO	69 Neutral	$2.02B	29.94	9.79%	―	10.58%	-45.52%
MQ	67 Neutral	$2.17B	―	-4.10%	―	20.11%	-391.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NTNX	61 Neutral	$12.82B	63.53	―	―	17.45%	―

Toast Inc Corporate Events

Toast Inc Appoints New Board Member for Expansion

On October 24, 2025, Toast Inc. appointed Anutthara Ramamurthy Bharadwaj to its Board of Directors, effective immediately. Ms. Bharadwaj, who is the President of Atlassian, brings extensive experience in enterprise software and product innovation. Her appointment is expected to support Toast’s mission to empower restaurants and drive innovation as the company continues to expand into new markets and geographies. The announcement highlights the strategic importance of her expertise in scaling technology platforms, which aligns with Toast’s goals of enhancing its service offerings and market reach.