Start here if you're new
what it is
Toast sells the system restaurants use to take orders, run payments, and get paid.
how it gets paid
Last year Toast made $6.2B in revenue. Financial Technology Solutions was the main engine at $5.08B, or 82% of sales.
why it's growing
Revenue grew 24.1% last year. Gross margin at 25.9% mattered most. It shows Toast is keeping more of each sales dollar after direct costs.
what just happened
Toast missed consensus on the latest print, with Yahoo Finance showing $0.16 EPS versus $0.23 expected.
At a glance
B+ balance sheet — decent shape, but not bulletproof
33.5x trailing p/e — you're paying up for this one
21.0% return on capital — every dollar works hard here
xvary composite: 41/100 — below average
$1.25 fy2026 eps est
What they do
Toast sells the system restaurants use to take orders, run payments, and get paid.
Toast gets 82% of sales from financial tech solutions and 14% from subscriptions. Hardware is 3%, so the box is the door, not the business. Revenue rose 24.1% to $6.2B, and FY2025 EPS went from $0.03 to $1.00. Leaving means moving payments, menus, and ordering at once, and your staff learns one system instead of three.
How they make money
$6.2B
annual revenue · their business grew +24.1% last year
Financial Technology Solutions
$5.08B
Subscription Services
$0.87B
Hardware
$0.19B
Professional Services
$0.06B
The products that matter
restaurant operating software
subscription services
$2.3B · 37% of revenue
this is the recurring layer — software and attached services that grew 26.5% last year. if you want toast to look more like a software company than a processor, this number has to keep leading.
faster growth
payment processing
fintech solutions
$3.4B · 55% of revenue
toast processed $195.1B in gross payment volume last year. that's the scale. the catch is simple: when restaurant spending slows, this segment feels it first.
$195.1B gpv
hardware and implementation
hardware & other
$0.5B · 8% of revenue
this segment was flat last year. it helps land customers, but it is not the part of the model carrying the valuation.
flat growth
Key numbers
$6.2B
annual revenue
The business is already big. A 10% slowdown is about $620M.
21.0%
return on capital
Toast earns 21 cents for every dollar tied up in the business. That says the machine is working.
4.7%
operating margin
This is still thin. A small cost wobble can eat the profit.
33.5x
trailing p/e
You are paying 33.5 times last year's earnings. That is rich next to a 4 risk rank.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 10 / 100
- net profit margin 12.8% — keeps 13 cents of every dollar in revenue
- return on equity 21% — $0.21 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for TOST right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Toast missed consensus on the latest print, with Yahoo Finance showing $0.16 EPS versus $0.23 expected.
EDGAR lists $4.5B in revenue and $0.39 EPS for the latest quarter. Yahoo Finance consensus says the same print was $0.16 versus $0.23 expected, so the dataset is inconsistent. Gross margin was 25.9%.
$4.5B
revenue
$0.39
eps
25.9%
gross margin
the number that mattered
Gross margin at 25.9% mattered most. It shows Toast is keeping more of each sales dollar after direct costs, even with messy EPS data.
-
we look for profit improvement to continue at toast in 2026.this payment processing company, focusing on restaurants, has grown rapidly since becoming a public entity five years ago.
-
over that span, revenues have increased by more than 250% and the company has become solidly profitable.
-
toast continues to add new locations at a rapid pace.in the september quarter, it increased its count by 7,500 and now operates within 156,000 sites around the world.
-
for the full year, we think revenue advanced by 24% and earnings reached $1.00 per share. (the company was expected to report december-period results shortly after we went to press with this issue.) the solid momentum is likely to continue in the coming quarters, and our estimate is for profits to increase 25%, to $1.25 a share. The company is pursuing relationships with major players.
-
it recently signed several large-scale operators including nordstrom and tgi fridays.
source: EDGAR and Yahoo Finance consensus, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the top threat is restaurant spending slowing inside a transaction-heavy model.
med
payment volume sensitivity
fintech generates 55% of revenue and runs through $195.1B of annual payment volume. if diners pull back, transaction revenue feels it fast.
the first hit lands on the biggest revenue segment. that is why this stock is not insulated from restaurant demand swings.
med
mix shift stalling
subscription services grew 26.5% and reached $2.3B, but fintech still outweighs it at 55% of revenue versus 37%.
if the faster-growing software layer stops gaining ground, the stock starts looking less like software and more like a processor with restaurant exposure.
med
premium multiple, low stability
the stock trades at 33.5x trailing earnings and carries a price stability score of 10 out of 100. the share price has already swung from $16 to $50 in the last 52 weeks.
when expectations are rich and stability is low, you do not need terrible results to get a sharp drawdown. you just need results that are less good than hoped.
a slowdown in restaurant demand hits the 55% of revenue tied directly to transactions first, then pressures the rest of the platform.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
2026 gross profit guide
management pointed to $2.27B–$2.30B in subscription and fintech gross profit. if that number holds, the margin story is still moving the right way.
metric
gross payment volume
$195.1B in annual gpv is the scale number. if restaurant demand softens, this is where you will see it first.
trend
subscription growth versus fintech growth
subscription grew 26.5% last year versus 23% for fintech. you want that spread to stay positive because it tells you the business mix is improving, not just getting bigger.
risk
valuation versus execution
33.5x trailing earnings is still a premium for a company with a 10 out of 100 price stability score. the stock needs better mix and cleaner execution to earn that multiple.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts think near-term upside is harder from here.
risk profile
below average
stability score 4 — this stock has been more volatile than most, so you should expect bigger swings than the market average.
chart momentum
top 20%
technical score 2 — the chart still screens well even while the fundamental ranking looks cooler. welcome to growth-stock contradiction.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 389 buyers vs. 326 sellers in 3q2025. total institutional holdings: 0.4B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$27
$79
$34
current price
$53
target midpoint · +58% from current · 3-5yr high: $80 (+140% · 20% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive