Toast Inc (TOST) AI Stock Analysis

• Market Cap: $19.96B
• Dividend Yield: N/A
• Average Volume (3M): 8.56M
• Price to Earnings (P/E): 77.9
• Beta (1Y): 1.46
• 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: 8,717,842
• 30 Day Avg. Volume: 8,563,372
• 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: 1.02
• Enterprise Value/Revenue: 3.48
• Enterprise Value/Gross Profit: 13.57
• Enterprise Value/Ebitda: 62.56
• 1Y Price Target: $47.56
• Price Target Upside: 40.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 1
• Revenue Forecast (FY): $6.13B

• Rating: 69 Neutral
• Price Target: $36.00 ▲(6.04% Upside)

Toast Inc's strong financial performance and positive earnings call are significant strengths, indicating robust growth and strategic advancements. However, the high valuation and bearish technical indicators present risks that temper the overall score.

Positive Factors

Revenue Growth

Toast's strong revenue growth and expanding margins indicate robust demand and efficient operations, supporting long-term business sustainability.

Market Expansion

Expansion into new markets and partnerships with major brands enhance Toast's market position and potential for sustained growth.

Innovative Product Introductions

Innovative AI-driven products improve customer engagement and operational efficiency, positioning Toast for future technological leadership.

Negative Factors

Consumer Spending Risks

Potential volatility in consumer spending could impact revenue stability, posing a risk to consistent financial performance.

Website Pricing Error

Pricing errors, though corrected, highlight operational risks that could affect customer trust and financial outcomes if not managed.

High Valuation Concerns

High valuation metrics may limit future stock price appreciation and increase vulnerability to market corrections.

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 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 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: Negative
• Last Price: 33.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 33.95 is below the 20-day moving average (MA) of 36.06, below the 50-day MA of 37.10, and below the 200-day MA of 39.63, indicating a bearish trend. The MACD of -1.06 indicates Positive momentum. The RSI at 41.39 is Neutral, neither overbought nor oversold. The STOCH value of 13.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TOST.

Toast Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOUR	74 Outperform	$5.81B	30.80	15.52%	―	23.16%	27.38%
TOST	69 Neutral	$19.96B	77.87	15.96%	―	25.76%	―
PAYO	69 Neutral	$1.97B	29.20	9.79%	―	10.58%	-45.52%
FFIV	68 Neutral	$13.46B	19.85	20.60%	―	9.66%	23.87%
MQ	64 Neutral	$2.09B	―	-4.10%	―	20.11%	-391.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NTNX	57 Neutral	$15.60B	89.60	―	―	18.11%	―

Toast Inc Corporate Events

Toast, Inc. Earnings Call: Strong Growth and Innovations

Toast, Inc. recently held its earnings call, revealing a generally positive sentiment with strong growth in Annual Recurring Revenue (ARR), expansion into new markets, and successful product innovations. Despite some concerns about consumer spending normalization and a minor website pricing error, the company’s performance and strategic advancements have positioned it positively for the future.

Toast, Inc. Reports Strong Q3 2025 Financial Performance

Toast, Inc. is a cloud-based digital technology platform designed specifically for the restaurant industry, providing a comprehensive suite of software and financial technology solutions to streamline operations and enhance customer experiences across various service models.

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.

The most recent analyst rating on (TOST) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on Toast Inc stock, see the TOST Stock Forecast page.

Toast, Inc. Earnings Call: Strong Growth and Strategic Moves

Toast, Inc. Earnings Call Highlights Strong Growth and Strategic Initiatives

Toast, Inc. Reports Strong Q2 2025 Growth and New Partnerships

Toast, Inc., a leading cloud-based digital technology platform, specializes in providing comprehensive software and financial technology solutions for the restaurant industry, helping streamline operations and enhance guest experiences. In its second quarter of 2025, Toast reported significant growth, adding a record 8,500 new locations and achieving a 31% increase in annualized recurring run-rate to $1.9 billion. The company also announced a strategic partnership with American Express to enhance dining experiences and expand its market reach.