Toast (NYSE:TOST) Releases Earnings Results

Toast (NYSE:TOST) posted its quarterly earnings results on Thursday. The company reported $0.16 earnings per share for the quarter, missing the consensus estimate of $0.24 by ($0.08), Zacks reports. Toast had a return on equity of 18.86% and a net margin of 5.56%.The business had revenue of $1.63 billion during the quarter, compared to analysts’ expectations of $1.62 billion. During the same quarter in the prior year, the firm earned $0.05 EPS. The firm’s revenue for the quarter was up 22.0% compared to the same quarter last year.

Here are the key takeaways from Toast’s conference call:

• Toast reported strong 2025 results with recurring gross profit up 33%, ARR above $2 billion, a record ~30,000 net location adds, and robust profitability (Adjusted EBITDA of $633M and FCF of $608M).
• Toast IQ (conversational AI) saw rapid adoption—used by over half of locations within months and >1M queries—and is already automating support and routine workflows, which management says should raise ARPU and improve margins over time.
• Expansion into new “towns” is gaining traction: enterprise wins (Applebee’s, Firehouse Subs, Papa Murphy’s), launch in Australia, and scaled retail rollouts; management says these new verticals are growing faster than the core at comparable stages and can be material long‑term growth drivers.
• 2026 guidance targets 20%–22% growth in recurring gross profit and Adjusted EBITDA of $775M–$795M, but management warned of near-term headwinds—~150 basis points of incremental cost from higher memory chip prices, higher tariffs, and negative hardware/professional services contribution—that could pressure margins in the short term.

Toast Price Performance

Shares of NYSE:TOST traded up $1.10 during midday trading on Friday, hitting $27.24. The company had a trading volume of 33,948,590 shares, compared to its average volume of 12,623,110. Toast has a 12-month low of $25.91 and a 12-month high of $49.66. The company has a fifty day moving average of $33.55 and a two-hundred day moving average of $37.28. The company has a market cap of $16.01 billion, a price-to-earnings ratio of 50.44 and a beta of 1.93.

Insider Activity at Toast

In other Toast news, CEO Aman Narang sold 8,591 shares of the business’s stock in a transaction dated Monday, January 5th. The stock was sold at an average price of $34.38, for a total transaction of $295,358.58. Following the completion of the sale, the chief executive officer owned 338,850 shares of the company’s stock, valued at approximately $11,649,663. The trade was a 2.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, General Counsel Brian R. Elworthy sold 3,303 shares of the company’s stock in a transaction dated Monday, January 5th. The stock was sold at an average price of $34.38, for a total value of $113,557.14. Following the completion of the sale, the general counsel owned 235,757 shares of the company’s stock, valued at approximately $8,105,325.66. The trade was a 1.38% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 100,856 shares of company stock valued at $3,540,449 in the last ninety days. Corporate insiders own 12.14% of the company’s stock.

Institutional Investors Weigh In On Toast

A number of institutional investors and hedge funds have recently added to or reduced their stakes in TOST. Silicon Valley Capital Partners bought a new position in shares of Toast in the fourth quarter worth approximately $36,000. Quadrant Capital Group LLC lifted its stake in shares of Toast by 2,083.3% during the 4th quarter. Quadrant Capital Group LLC now owns 1,048 shares of the company’s stock valued at $37,000 after buying an additional 1,000 shares in the last quarter. Ankerstar Wealth LLC bought a new position in Toast in the 4th quarter worth $49,000. Quarry LP boosted its holdings in Toast by 25.2% in the 3rd quarter. Quarry LP now owns 2,755 shares of the company’s stock worth $101,000 after buying an additional 555 shares during the period. Finally, Intesa Sanpaolo Wealth Management purchased a new stake in Toast in the 4th quarter worth $118,000. Institutional investors own 82.91% of the company’s stock.

Analyst Upgrades and Downgrades

TOST has been the subject of a number of recent analyst reports. Morgan Stanley set a $51.00 target price on Toast in a research report on Friday. Citigroup decreased their price objective on shares of Toast from $51.00 to $42.00 and set a “buy” rating for the company in a report on Friday. Canaccord Genuity Group set a $37.00 target price on shares of Toast in a report on Friday. Wolfe Research downgraded shares of Toast from an “outperform” rating to a “peer perform” rating in a research report on Thursday, January 8th. Finally, DA Davidson decreased their target price on shares of Toast from $42.00 to $36.00 and set a “neutral” rating for the company in a research note on Monday, February 2nd. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $41.18.

Key Headlines Impacting Toast

Here are the key news stories impacting Toast this week:

• Positive Sentiment: Revenue and growth: Q4 revenue was $1.63B, up ~22% year-over-year and roughly in line with consensus, signaling sustained top-line momentum that supports longer‑term ARR expansion. Read More.
• Positive Sentiment: Analyst support remains: Major firms (Citigroup and Needham) kept “Buy” ratings even after trimming targets, which can limit downside from negative headlines and signals continued institutional conviction. Read More. Read More.
• Neutral Sentiment: Board authorizes buyback: The company announced a share-repurchase authorization; the report listed $0.00 in buyback dollars (no dollar amount disclosed), so the move signals intent but lacks immediate capital deployment details. Read More.
• Neutral Sentiment: Market commentary: Bullish analyst/guest pieces argue Toast’s ARR growth, margin expansion and industry position make it resilient amid sector pressures — helpful for sentiment but not new financial data. Read More.
• Negative Sentiment: EPS miss: Toast reported EPS below consensus ($0.16 reported vs. ~$0.24 expected per consensus), which is an earnings disappointment that likely pressured some short‑term investor sentiment. Read More.
• Negative Sentiment: Price target cuts: Citigroup cut its target from $51 to $42 and Needham trimmed theirs from $60 to $35 — reductions that reduce analyst-derived upside even though both maintained Buy ratings. Read More. Read More.

Toast announced that its Board of Directors has initiated a share repurchase plan on Thursday, February 12th that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Shares buyback plans are generally an indication that the company’s board of directors believes its stock is undervalued.

About Toast

Toast, Inc (NYSE: TOST) is a technology company that builds a cloud-based platform for restaurants and other foodservice businesses. Headquartered in Boston, Massachusetts, Toast offers integrated point-of-sale (POS) systems and a suite of software and hardware designed to streamline front-of-house and back-of-house operations. The company went public in 2021 and has positioned itself as a vertically integrated provider for the restaurant industry.

Toast’s product portfolio includes touchscreen POS terminals and handheld order-and-pay devices, kitchen display systems, and peripherals tailored for high-volume foodservice environments.