📊 TOST Key Takeaways
Is Toast, Inc. (TOST) a Good Investment?
Toast demonstrates fortress-like financial health with zero debt, $1.4B cash reserves, and robust $608M free cash flow generation, but profitability growth has stalled (0% net income YoY growth) despite extraordinary revenue expansion, indicating concerning operational leverage or integration challenges from what appears to be acquisition-driven growth.
Why Buy Toast, Inc. Stock? TOST Key Strengths
- Fortress balance sheet: zero long-term debt, $1.4B cash, 0.00 debt-to-equity ratio
- Strong free cash flow generation of $608M annually with 9.9% FCF margin and capital-efficient operations ($53M CapEx)
- Excellent liquidity position (2.75x current ratio, 2.64x quick ratio) and solid return metrics (16.1% ROE, 10.9% ROA)
TOST Stock Risks: Toast, Inc. Investment Risks
- Net income growth completely stalled at 0% YoY despite 11,964% revenue growth, indicating severe profitability deterioration
- Depressed operating margins (4.7%) and net margins (5.6%) suggest operational challenges, execution issues, or unsustainable business model at scale
- Extreme revenue growth appears acquisition-driven rather than organic, raising material execution and integration risks
Key Metrics to Watch
- Operating margin expansion trajectory and path back to healthy profitability per revenue dollar
- Organic revenue growth rate excluding acquisition impact and revenue quality metrics
- Free cash flow sustainability and working capital trends as company scales
Toast, Inc. (TOST) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.75x current ratio provides a solid financial cushion.
TOST Profit Margin, ROE & Profitability Analysis
TOST vs Technology Sector: How Toast, Inc. Compares
How Toast, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Toast, Inc. Stock Overvalued? TOST Valuation Analysis 2026
Based on fundamental analysis, Toast, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Toast, Inc. Balance Sheet: TOST Debt, Cash & Liquidity
TOST Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Toast, Inc.'s revenue has grown significantly by 261% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.47 indicates the company is currently unprofitable.
TOST Revenue Growth, EPS Growth & YoY Performance
TOST Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.3B | -$13.0M | $-0.02 |
| Q2 2025 | $1.2B | $14.0M | $0.02 |
| Q1 2025 | $1.1B | $56.0M | $0.09 |
| Q3 2024 | $1.0B | -$13.0M | $-0.02 |
| Q2 2024 | $978.0M | $14.0M | $0.02 |
| Q1 2024 | $819.0M | -$81.0M | $-0.15 |
| Q3 2023 | $752.0M | -$31.0M | $-0.09 |
| Q2 2023 | $675.0M | -$54.0M | $-0.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Toast, Inc. Dividends, Buybacks & Capital Allocation
TOST SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Toast, Inc. (CIK: 0001650164)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775248440.xml | View → |
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775248408.xml | View → |
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775248370.xml | View → |
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775248344.xml | View → |
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775248306.xml | View → |
❓ Frequently Asked Questions about TOST
What is the AI rating for TOST?
Toast, Inc. (TOST) has an AI rating of HOLD with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TOST's key strengths?
Claude: Fortress balance sheet: zero long-term debt, $1.4B cash, 0.00 debt-to-equity ratio. Strong free cash flow generation of $608M annually with 9.9% FCF margin and capital-efficient operations ($53M CapEx).
What are the risks of investing in TOST?
Claude: Net income growth completely stalled at 0% YoY despite 11,964% revenue growth, indicating severe profitability deterioration. Depressed operating margins (4.7%) and net margins (5.6%) suggest operational challenges, execution issues, or unsustainable business model at scale.
What is TOST's revenue and growth?
Toast, Inc. reported revenue of $6.2B.
Does TOST pay dividends?
Toast, Inc. does not currently pay dividends.
Where can I find TOST SEC filings?
Official SEC filings for Toast, Inc. (CIK: 0001650164) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TOST's EPS?
Toast, Inc. has a diluted EPS of $0.56.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TOST a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Toast, Inc. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is TOST stock overvalued or undervalued?
Valuation metrics for TOST: ROE of 16.1% (sector avg: 22%), net margin of 5.6% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy TOST stock in 2026?
Our dual AI analysis gives Toast, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TOST's free cash flow?
Toast, Inc.'s operating cash flow is $661.0M, with capital expenditures of $53.0M. FCF margin is 9.9%.
How does TOST compare to other Technology stocks?
Vs Technology sector averages: Net margin 5.6% (avg: 18%), ROE 16.1% (avg: 22%), current ratio 2.75 (avg: 2.5).