📊 TOST Key Takeaways
Is Toast, Inc. (TOST) a Good Investment?
Toast demonstrates exceptional financial health with zero long-term debt, $1.1B in cash, and strong free cash flow generation of $115M despite explosive revenue growth. However, thin operating margins of 6.7% and low return ratios (ROE 6.3%, ROA 4.1%) indicate the company is in heavy growth investment mode and must improve profitability efficiency to justify its $3.1B asset base.
Toast, Inc. Key Strengths (TOST)
- Zero long-term debt with $1.1B cash position provides strategic flexibility and financial security
- Strong free cash flow of $115M (7.1% FCF margin) demonstrates underlying business quality despite thin accounting margins
- Revenue growth trajectory with positive net income ($126M) and healthy profitability despite capital reinvestment
- Robust liquidity with 2.44x current ratio and 2.31x quick ratio
TOST Stock Risks: Toast, Inc. Investment Risks
- Operating margin of 6.7% is thin for a software platform business, indicating competitive pricing pressure or elevated cost structure
- ROE of 6.3% and ROA of 4.1% suggest capital is not being deployed efficiently; company must improve returns on growing asset base
- The 11,964.7% YoY revenue growth is unsustainable; future growth deceleration could pressure stock valuation
- Gross margin of 27.4% is modest, leaving limited pricing power and vulnerability to cost inflation
Key Metrics to Watch
- Operating margin trend - must improve from 6.7% to demonstrate operational leverage
- Return on equity progression - 6.3% must increase as company reaches scale to justify capital efficiency
- Free cash flow sustainability - maintain >$100M annual FCF as growth normalizes
- Gross margin expansion - opportunity to improve from 27.4% through scale and product mix optimization
Toast, Inc. (TOST) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.44x 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 |
|---|---|---|---|
| Q1 2026 | $1.3B | $56.0M | $0.09 |
| 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 |
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
❓ Frequently Asked Questions about TOST
What is the AI rating for TOST?
Toast, Inc. (TOST) has an AI grade of A with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TOST's key strengths?
Claude: Zero long-term debt with $1.1B cash position provides strategic flexibility and financial security. Strong free cash flow of $115M (7.1% FCF margin) demonstrates underlying business quality despite thin accounting margins.
What are the risks of investing in TOST?
Claude: Operating margin of 6.7% is thin for a software platform business, indicating competitive pricing pressure or elevated cost structure. ROE of 6.3% and ROA of 4.1% suggest capital is not being deployed efficiently; company must improve returns on growing asset base.
What is TOST's revenue and growth?
Toast, Inc. reported revenue of $1.6B.
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 $0.20.
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 grade reflects both perspectives for balanced insights.
What is TOST's fundamental grade?
Based on our AI fundamental analysis in June 2026, Toast, Inc. has a A grade with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is TOST stock overvalued or undervalued?
Valuation metrics for TOST: ROE of 6.3% (sector avg: 22%), net margin of 7.7% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is TOST's AI grade for 2026?
Our dual AI analysis gives Toast, Inc. a combined A grade 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 $132.0M, with capital expenditures of $17.0M. FCF margin is 7.1%.
How does TOST compare to other Technology stocks?
Vs Technology sector averages: Net margin 7.7% (avg: 18%), ROE 6.3% (avg: 22%), current ratio 2.44 (avg: 2.5).