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Toast, Inc.

Rank #82HypergrowthWatchlistCompare with other stocks

TOST · NYSE · Technology

Toast, Inc. (TOST) — Rank #82 by gross profitability (GP/assets 0.50) · ROE 16.7% · Piotroski F-Score N/A.

As-of 2026-10-30 · CIK 0001650164 · all metrics point-in-time as of the filing date.

About

Toast, Inc. operates a cloud-based digital technology platform for the restaurant industry in the United States, Ireland, India, and internationally.

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It offers a platform of software-as-a-service for restaurant operations and point of sale, such as Toast POS; Toast IQ, a conversational artificial intelligence; vendor management; multi-location management; kitchen display system; online ordering and delivery. It offers payroll and team management; inventory and supply chain tools; xtraCHEF by toast, a set of back-office tools for restaurants, including accounts payable automation, inventory management, ingredient price tracking, and recipe costing; financial technology solutions, including integrated payment processing, and restaurant-grade hardware. The company was formerly known as Opti Systems, Inc. and changed its name to Toast, Inc. in May 2012. Toast, Inc.

was incorporated in 2011 and is headquartered in Boston, Massachusetts.

Industry
Software - Infrastructure
Sector
Technology
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

6,500

Industry

Software - Infrastructure

Exchange

NYSE

10/11

Flags passed

TOST passes 10/11 quality flags

1 caution to review

  • CAUTION
    Dilution above 2%

    Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

  • PASS
    Gross margin holding
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Operating leverage expanding · Deferred revenue growing · Sequential beat (rev + EPS)

No data Balance sheet — not counted as a pass.

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.50
Return on equity
16.7%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.56
Current ratio
2.40×
Net cash
$1.01B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
3.9%

Growth

1/2 pass
Revenue growth
24.1%
Piotroski F-Score
N/A
Share dilution
2.7%

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Does it make money well?

No warning flags · GP/assets 0.50

Gross profitability (GP / assets)

0.50

Primary signal (Novy-Marx).

7th of 14 SIC 7374 peers

Return on equity

16.7%

Gross margin

25.9%

13th of 14 SIC 7374 peers

Revenue growth (YoY)

24.1%

RPO growth (YoY)

19.4%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

31.1%

Revenue CAGR (5Y)

49.5%

Earnings CAGR (3Y)

—

FCF CAGR (3Y)

—

Cash Flow Health

Is the cash real?

No warning flags · FCF 78% above net income

Free cash flow

$608.00M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

77.8%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

3.9%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

Caution: Dilution above 2% · net cash $1.01B

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.56

4th of 12 SIC 7374 peers (best = lowest)

Current ratio

2.40×

5th of 14 SIC 7374 peers

Quick ratio

1.05×

Net cash

$1.01B

Cash & equivalents minus total debt.

Piotroski F-Score

N/A

Only 8/9 components determinable.

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

3.3 / 5

Good
Share count trend
2.7%2/5 Fair
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory(deleveraging)
14.3%5/5 Strong

Lifecycle Phase History

20202025
Hypergrowth

Price History

TOST-52.4% · -13.8% CAGRSPY+86.0% · +13.2% CAGR

View full financial statements →

Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports