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Buy Day today: Poor Neutral (49) Good Mixed market breadth · no major macro event

Toast Inc (TOST)

Technology Software - Infrastructure
30.90 $
Closing price · As of: 20. Jul 2026
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Read the Full Deep Dive
Toast Stock: From a $246 Million Loss to a $342 Million Profit — Only the Price Won't Believe the Turnaround

Toast runs the point of sale, software and payment rails of roughly 171,000 restaurants — and has just delivered a textbook operational turnaround: a $246 million loss (2023) became a $342 million profit (2025), and the first quarter of 2026 added another 125 percent. Yet the stock sits about 60 percent below its high, and in our in-house turnaround scanner exactly one box on the checklist stays unticked: insiders are not buying — they are selling. We read the annual report (10-K) for 2025 and the quarterly report (10-Q) as of March 31, 2026: the thin spread behind the six-billion-dollar revenue line, hardware sold at a planned loss, and a share class that bundles 55 percent of the votes. Not investment advice — just the question why the people who know Toast best keep landing on the sell side.

Appears in These Scanners

This stock currently matches 2 of our scanner strategies — each hit links to the scanner.

Research
Value & GARP

Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners

Basics

Market Cap
14.9Mrd. $
Shares Outstanding
516Mio.
Float
94.3%
Beta
1.7

Performance

Perf. 1M
12.80%
Perf. 3M
9.80%
Perf. 6M
-22.80%
YTD Performance (%)
-31.00%
52-Week-High Distance
-48.1%

Valuation

P/E
39.1
Forward P/E
20.9
PEG
0.2
P/B
7.6
P/S
2.3
EV/EBITDA
35.7
Price/FCF
22.8

Profitability

Gross Margin
26.4%
EBIT Margin
6.8%
Net Margin
6.4%
Return on Equity
22.5%
Return on Assets
8.1%

Balance Sheet & Safety

Equity Ratio
64.3%
Debt/Equity
0.01
fortress balance sheet
Altman Z
8.09
very solid
Piotroski
9 von 9

Growth

Sales Growth Last Quarter
21.90%
EPS Growth Last Quarter
123.00%
Sales Growth (Year)
24.05%
Forward Sales Growth
18.08%
Forward EPS Growth
25.70%

Quality & Screener

Stage
4
RS Rating
11
EPS Rating
87
very solid
Piotroski
9 von 9
Fundamental Rating
A (+61 von 100)
fortress balance sheet
Altman Z
8.09

AI Rating

Uses AI

Toast verkauft keine KI als eigenständige Umsatzquelle — die Erlöse stammen laut 10-K 2025 aus Software-Abos, Zahlungsabwicklung und Hardware für Restaurants. Die Filings belegen aber breiten operativen KI-Einsatz in den eigenen bezahlten Produkten: „Toast IQ“ ist als dialogfähiger KI-Assistent fest in die Plattform eingebaut (Item 1 Business), die Marketing-Produkte enthalten einen KI-Schreibassistenten, das Retail-Modul KI-generierte Artikelbeschreibungen, und das Risikokapitel bestätigt ausdrücklich den KI-Einsatz „both for internal productivity purposes and in products and services available to our customers“. Eine dedizierte KI-Umsatzquelle im Sinne des Kriterienkatalogs (KI-Produkte/-Dienste als Umsatzträger) weisen die Filings nicht aus — die KI-Funktionen sind unbepreiste Bestandteile des Abo-Angebots. Daher Nutzt KI statt Verkauft KI.

View the full file — quotes, sources, reviewed filings
„Toast IQ is a conversational artificial intelligence, or AI, assistant built into our platform that uses real-time and historical data from our customers’ operations to help surface actionable business insights and enable operators to ask questions in natural language and take actions directly within the Toast system."

Toast IQ ist ein dialogfähiger Assistent auf Basis Künstlicher Intelligenz (KI), der in unsere Plattform eingebaut ist und Echtzeit- wie historische Daten aus dem Betrieb unserer Kunden nutzt, um verwertbare Geschäftserkenntnisse sichtbar zu machen und es Betreibern zu ermöglichen, Fragen in natürlicher Sprache zu stellen und Aktionen direkt im Toast-System auszuführen.

10-K · 2026-02-18 · View SEC filing
„We use AI in our platform and product offerings, and our success is dependent upon our ability to leverage data, develop competitive products, and manage related risks. We utilize AI solutions both for internal productivity purposes and in products and services available to our customers."

Wir setzen KI in unserer Plattform und unseren Produktangeboten ein, und unser Erfolg hängt davon ab, dass wir Daten nutzbar machen, wettbewerbsfähige Produkte entwickeln und die damit verbundenen Risiken beherrschen. Wir verwenden KI-Lösungen sowohl für interne Produktivitätszwecke als auch in Produkten und Diensten, die unseren Kunden zur Verfügung stehen.

10-K · 2026-02-18 · View SEC filing
„Features within our marketing products, such as our writing assistant powered by AI, custom templates and one-click email campaigns, are designed to help operators save time on crafting marketing strategies."

Funktionen innerhalb unserer Marketing-Produkte — etwa unser KI-gestützter Schreibassistent, individuelle Vorlagen und Ein-Klick-E-Mail-Kampagnen — sollen Betreibern helfen, beim Erstellen von Marketingstrategien Zeit zu sparen.

10-K · 2026-02-18 · View SEC filing

Rated on July 19, 2026 · How the Rating Is Built

Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.

Sales Per Quarter ($M)
2024: Q4 · 1,338.0 Mio. $ Q4 2025: Q1 · 1,337.0 Mio. $ Q1 2025: Q2 · 1,550.0 Mio. $ Q2 2025: Q3 · 1,633.0 Mio. $ Q3 2025: Q4 · 1,633.0 Mio. $ Q4 2026: Q1 · 1,630.0 Mio. $ Q1
Earnings Per Share Per Quarter ($)
2024: Q4 · 0.05 $ Q4 2025: Q1 · 0.09 $ Q1 2025: Q2 · 0.13 $ Q2 2025: Q3 · 0.17 $ Q3 2025: Q4 · 0.17 $ Q4 2026: Q1 · 0.21 $ Q1
Net Margin Per Quarter (%)
2024: Q4 · 2.4 % Q4 2025: Q1 · 4.2 % Q1 2025: Q2 · 5.2 % Q2 2025: Q3 · 6.4 % Q3 2025: Q4 · 6.2 % Q4 2026: Q1 · 7.7 % Q1
Operating Cash Flow Per Quarter ($M)
2024: Q4 · 147.0 Mio. $ Q4 2025: Q1 · 79.0 Mio. $ Q1 2025: Q2 · 223.0 Mio. $ Q2 2025: Q3 · 165.0 Mio. $ Q3 2025: Q4 · 194.0 Mio. $ Q4 2026: Q1 · 132.0 Mio. $ Q1
Free Cash Flow Per Quarter ($M)
2024: Q4 · 134.0 Mio. $ Q4 2025: Q1 · 69.0 Mio. $ Q1 2025: Q2 · 208.0 Mio. $ Q2 2025: Q3 · 153.0 Mio. $ Q3 2025: Q4 · 178.0 Mio. $ Q4 2026: Q1 · 115.0 Mio. $ Q1
Sales Growth vs. Year-Ago Quarter (%)
2024: Q4 · 29.2 % Q4 2025: Q1 · 24.4 % Q1 2025: Q2 · 24.8 % Q2 2025: Q3 · 25.1 % Q3 2025: Q4 · 22.0 % Q4 2026: Q1 · 21.9 % Q1
EPS Growth vs. Year-Ago Quarter (%)
2025: Q2 · 454.4 % Q2 2025: Q3 · 81.7 % Q3 2025: Q4 · 212.0 % Q4 2026: Q1 · 125.4 % Q1
Price Change in Quarter (%)
2024: Q4 · 28.8 % Q4 2025: Q1 · -9.0 % Q1 2025: Q2 · 33.5 % Q2 2025: Q3 · -17.6 % Q3 2025: Q4 · -2.7 % Q4 2026: Q1 · -25.3 % Q1

Quarterly Figures

Quarterly Figures
Quarter EPS (Earnings Per Share) EPS YoY (%) Sales ($M) Sales YoY (%) Net Margin (%) OCF ($M) FCF ($M)
2024: Q4 0.05 1,338 29.20 2.40 147 134
2025: Q1 0.09 1,337 24.40 4.20 79 69
2025: Q2 0.13 454.40 1,550 24.80 5.20 223 208
2025: Q3 0.17 81.70 1,633 25.10 6.40 165 153
2025: Q4 0.17 212.00 1,633 22.00 6.20 194 178
2026: Q1 0.21 125.40 1,630 21.90 7.70 132 115
What Do These Terms Mean?
EPS (Earnings Per Share):
Quarterly profit divided by the total share count — how much of the profit works out to a single share.
YoY (Year over Year):
Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
Sales:
All revenue for the quarter, before any costs are deducted — the top line of the income statement.
Net Margin:
What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
OCF (Operating Cash Flow):
The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
FCF (Free Cash Flow):
Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.

Assessment: Opportunities & Risks

Operational turnaround

Net result turned from −$246 million (2023) via +$19 million (2024) to +$342 million (2025); Q1 2026 added +$126 million (up 125 percent) at a 7.7 percent net margin; operating cash flow of $661 million and free cash flow of $608 million (10-K 2025, 10-Q as of 03/31/2026).

Growth & market position

171,000 locations (up 22 percent), $204 billion in payment volume (TTM) and a $2,151 million recurring run-rate (up 26 percent) as of March 31, 2026 — the bundle of register, subscription and payment rail carries high switching costs for customers.

Balance sheet & capital returns

$1,991 million in cash and securities against essentially no debt (12/31/2025), an Altman Z-Score near 8, a Piotroski F-Score of 9 out of 9 (Q1 2026); the buyback program was raised by $500 million in February 2026, with $327 million deployed in the first quarter alone.

Business model quality

A good 80 percent of revenue is payment processing keeping just over half a cent gross per processed dollar; hardware is subsidized as customer acquisition at a $220 million gross loss (2025) — group gross margin near 26 percent, volume- and cycle-dependent, essentially a U.S.-only business.

Insiders & governance

20 insider sales, 0 purchases within twelve months, the CEO included (fundamental data, as of July 18, 2026) — the missing eighth point of the turnaround checklist; in addition, 66 million Class B shares (10 votes each) bundle about 55 percent of the voting power (10-K 2025).

Valuation

P/E near 39 trailing, near 19 on 2026 and near 15 on 2027 estimates, price/FCF near 23, P/S near 2.3 (data as of July 18, 2026) — no bargain, but no growth premium either for a business compounding at a good 20 percent; the stock sits about 60 percent below its all-time high.

Bottom Line

Toast is the rare turnaround that is not hoped for but audited: three earnings steps from −$246 million to +$342 million, growing cash flow, a full treasury, 22 percent location growth — and a scanner result of 7 of 8 turnaround points (rank 5 of the U.S. selection, as of July 18, 2026). Against that stand a structurally thin payments spread that hangs on the U.S. restaurant economy, a voting majority held by the Class B insiders — and the observation that precisely these insiders have done nothing but sell for twelve months while the company buys back. Whoever invests buys a real turnaround at the price of the doubt the best-informed are sowing themselves. Not investment advice.

Worth Noting:
  • TOST entered the research list as rank 5 of our in-house turnaround scanner (U.S. selection, checklist 7 of 8, as of July 18, 2026) — part of our series on the top 20 of that selection.
  • Scanner metrics (P/E, P/S, P/B, Piotroski, Altman Z, relative strength, insider and institutional data) use trailing twelve-month figures as of July 18, 2026; the 2026/2027 earnings estimates come from the analyst consensus in the fundamental data (29 estimators).
  • Price and market value figures (about $26, about $15 billion) are from the July 18, 2026 feed, sanity-checked against 524 million Class A plus 65 million Class B shares per the annual report 10-K for 2025 (record date February 12, 2026); analyses are evergreen, daily prices are not a buy argument.

About the Company

Toast, Inc. betreibt eine cloudbasierte digitale Technologieplattform für die Gastronomiebranche in den USA, Irland, Indien und international.

CEO Insider Trades (12 Mo.)selling own stock
Employees6,500
HeadquartersBoston, MA
Websitepos.toasttab.com
IPO Date22. Sep 2021
Next Earnings4. Aug 2026

Management

Management
Name Title Birth Year
Aman Narang Co-Founder, CEO & Director 1983
Stephen Fredette President, Co-Founder & Director 1984
Elena Gomez President & CFO 1970
Brian R. Elworthy J.D. General Counsel & Corporate Secretary 1981
Jonathan Vassil Chief Revenue Officer 1977
Peter Sauerborn Chief Operating Officer 1967
Rossana Niola Chief Accounting Officer 1980
Kelly Esten Chief Marketing Officer
Mike Gutner Chief People Officer
Michel Rbeiz Senior VP & GM of FinTech

Executives per the latest required filings; titles kept in their original language. Source: fundamental data.

Chart

Interactive price chart (TradingView).

Data as of: July 20, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)

Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.

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