At a glance
Toast Inc is worth $18.36B, about 57 times its fiscal 2025 earnings. Revenue grew 24.1% to $6.15B in fiscal 2025, with 5.6% kept as profit; over 5 years it has grown 49.5% a year. It pays no dividend; it spent $163.0M buying back its shares over FY2021–FY2025. The stock returned −18.3% over the past year with dividends reinvested and −9.6% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 61.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 30 months after the low.
The business in plain English
Toast provides an all-in-one technology system for restaurants. At its core is point-of-sale software, which staff use to take orders and accept payments. It runs on Toast's own hardware, including fixed terminals, handheld devices, self-service kiosks and kitchen display screens. Around that core, Toast offers online ordering and delivery tools, marketing and loyalty programs, payroll and scheduling, back-office tools for invoices and inventory, and an AI assistant called Toast IQ. It also serves food and beverage retailers such as convenience stores, bottle shops and grocery stores.
Most customers are small and medium-sized businesses, though Toast is also pursuing larger multi-location chains and growth outside the United States. More than 200 technology partners connect their products to the platform.
Payments drive the business. In the fiscal year ended December 31, 2025, revenue was $6.15 billion. Financial technology solutions, centered on processing card payments, brought in $5.04 billion, or 81.9%. Subscription software fees, on contracts that generally run 12 to 36 months, added $936 million, or 15.2%. Hardware and professional services made up $180 million, or 2.9%. Toast also offers Easy Pay leases to spread out upfront costs and Toast Capital loans, issued by a bank partner. Both are generally repaid from a share of daily sales.
Price history
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TOST -18.3% over the year to Oct 27, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Financial technology solutions | $5.04B | 81.9% |
| Subscription services | $936.0M | 15.2% |
| Hardware and professional services | $180.0M | 2.9% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $1.91B, up 23.1% from a year earlier, and net income was $154.0M (+92.5%).
- For fiscal 2025, revenue was $6.15B (+24.1% year over year; +49.5% a year from FY2020 to FY2025) with a 5.6% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +49.5% good |
|---|---|
| Operating margin | 4.7% weak |
| Free cash flow margin | 9.9% watch |
| Return on equity (FY2025) | 16.1% good |
| Return on assets (FY2025) | 10.9% good |
| Cash and investments | $1.01B (no borrowings found in the filings) good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $823.0M | $-248.0M | $-153.0M |
| FY2021 | $1.71B | $-487.0M | $-10.0M |
| FY2022 | $2.73B | $-275.0M | $-172.0M |
| FY2023 | $3.87B | $-246.0M | $93.0M |
| FY2024 | $4.96B | $19.0M | $306.0M |
| FY2025 | $6.15B | $342.0M | $608.0M |
Valuation snapshot
| Market value | $18.36B |
|---|---|
| P/E ratio | 56.7 |
| Dividend yield | None |
Rank among 1514 US companies
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| TOST price data to Oct 27, 2026 | -10.5% | -18.3% | +26.3% | -9.6% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -10.5% |
| 2025 | -2.6% |
| 2024 | +99.6% |
| 2023 | +1.3% |
| 2022 | -48.1% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 45.7% over that stretch · deepest drop along the way 61.6%, back to its old high 30 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 32 sales ($20.1M), 23 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 5, 2026 | Aman Narang CEO, Director | sell (plan) | $4.4M |
| Aug 10, 2026 | Aman Narang CEO, Director | sell (plan) | $4.2M |
| Aug 21, 2026 | Jonathan Vassil Chief Revenue Officer | sell (plan) | $3.1M |
| Aug 7, 2026 | Aman Narang CEO, Director | sell (plan) | $1.5M |
| Aug 5, 2026 | Elena Gomez President, CFO | sell (plan) | $564K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 10% | Sep 30, 2026 |
| FMR LLC | 6.5% | Dec 31, 2024 |
| Capital International Investors | 5.9% | Mar 31, 2026 |
| Stephen Fredette | 5.9% | Dec 31, 2024 |
| Vanguard Capital Management | 5.07% | Sep 30, 2026 |
| Technology Investment Dining Group, LLC | 4.34% | Mar 31, 2026 |
| T. Rowe Price Associates, Inc. | 4.2% | Dec 31, 2024 |
ETFs with the most weight in TOST
| AOTG AOT Growth and Innovation ETF | 6.66% |
| ARKF ARK Fintech Innovation ETF | 5.15% |
| TMFS Motley Fool Small-Cap Growth ETF | 4.88% |
| IPAY Amplify Mobile Payments ETF | 4.47% |
| FINX Global X FinTech ETF | 4.22% |
| TMFM Motley Fool Mid-Cap Growth ETF | 3.85% |
| PTF Invesco Dorsey Wright Technology Momentum ETF | 3.3% |
| FDFF Fidelity Disruptive Finance ETF | 2.69% |
What could go wrong
- Most revenue depends on payment processing. Financial technology solutions, centered on card payments, made up 81.9% of fiscal 2025 revenue. That income can swing with restaurant sales, competitive pricing, card network fees and Toast's reliance on outside payment processors.
- Small restaurants are vulnerable in downturns. Most customers are small and medium-sized businesses in a low-margin industry. They feel economic swings more sharply than large chains, and they are harder and costlier to keep as customers.
- Lending and customer funds carry credit risk. Toast Capital loans, issued by a bank partner, and Easy Pay leases rely on customers repaying from daily sales. Missed payments, fraud, problems with key partners, or regulators treating Toast as a lender could cause losses.
- Fierce competition and pressure from payment players. Restaurant technology is intensely competitive. Other companies in the payments chain could also cut Toast out, and competitors may influence card network rules that set the fees Toast pays.
- Outages or data breaches could damage trust. Restaurants rely on Toast to take orders and payments, and its platform runs mainly on Amazon Web Services. Outages, software or hardware defects, or a breach of sensitive data could hurt its reputation.
- Growth may slow and margins are thin. Revenue rose 24.1% in fiscal 2025, but Toast warns it may not sustain that pace. Its operating margin (operating profit per dollar of sales) was just 4.7%. If costs outpace revenue, profits could shrink.
Recent events
- Executive or board change
- Quarterly results released
- Shareholder vote results
- Quarterly results released
- Quarterly results released; Other company announcement
- Executive or board change
- Quarterly results released
For income and retirement investors
Toast pays no dividend, and its annual report says it does not intend to pay one for the foreseeable future. Any return comes only from the share price, so an income investor would need to cash out shares for spending money. Toast repurchased $56 million of stock in fiscal 2024 and $107 million in fiscal 2025, after none in fiscal 2022 or 2023. It generated $608 million of free cash flow, the cash left after running and investing in the business, in fiscal 2025.
In the 2022 bear market, a prolonged market slump, the stock fell 61.6% from January 3 to May 11, 2022. It did not regain that peak until November 8, 2024, about 30 months later. Its largest peak-to-trough fall through October 27, 2026, was 80.6%. Its price history does not cover the 2008 crisis or the 2020 crash. Single stocks like Toast carry more risk than diversified funds that spread money across many companies.
Questions investors ask
How does Toast make money?
Toast makes most of its money from processing card payments for restaurants. In fiscal 2025, financial technology solutions, which center on payments, brought in $5.04 billion of its $6.15 billion in revenue, or 81.9%. Subscription software fees added $936 million (15.2%), and hardware and professional services $180 million (2.9%). Restaurants use Toast to take orders and payments, run online ordering and kitchen screens, and handle payroll and marketing. Toast aims to get them to adopt more of the platform over time.
Does Toast pay a dividend?
No. Toast does not pay a dividend, and its annual report for the year ended December 31, 2025, says it does not intend to pay one for the foreseeable future. It has used cash to repurchase shares instead: $56 million in fiscal 2024 and $107 million in fiscal 2025. Returns depend entirely on the share price, so the stock provides no regular income for retirees who rely on dividends.
Is Toast profitable?
Yes, but its profits are new and its margins are thin. Toast lost money every year from fiscal 2020 through 2023, then earned $19 million in fiscal 2024 and $342 million in fiscal 2025. Its fiscal 2025 net margin, or profit per dollar of sales, was 5.6%. Free cash flow, the cash left after running and investing in the business, reached $608 million that year. In the quarter ended June 30, 2026, net income was $154 million, up 92.5% from a year earlier.
How fast is Toast growing?
Quickly, though growth has slowed as the company has grown. Revenue rose 24.1% in fiscal 2025 to $6.15 billion, up from $823 million in fiscal 2020. That is a compound annual growth rate, the average yearly increase with compounding, of 49.5% over five years. In the quarter ended June 30, 2026, revenue grew 23.1% from a year earlier to $1.91 billion. Toast's annual report warns that it may not be able to sustain its growth in future periods.
What is Toast's P/E ratio?
About 56.7 as of October 27, 2026, based on fiscal 2025 earnings of $0.56 per share. The price-to-earnings (P/E) ratio compares the share price with a year's profit per share, and a figure that high means the price assumes earnings keep growing fast. Toast's market value was about $18.4 billion on that date. The shares fell 18.3% over the year to October 27, 2026, but gained 101% in total over the three years to that date.