Toast, Inc.

Rank #81Hypergrowth

TOST · NYSE · Technology

Toast, Inc. (TOST) — Rank #81 by gross profitability (GP/assets 0.50) · ROE 16.7% · Piotroski F-Score N/A.

As-of 2026-09-15 · 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.

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
Website: pos.toasttab.com

Price History

TOST-48.6% · -12.6% CAGRSPY+86.2% · +13.4% CAGR

Company Snapshot

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

Market Cap

$18.89B

P/E (annual)

58.4

P/S (annual)

3.1

P/B

9.2

P/OCF (annual)

28.6

Shareholder Yield

-2.7%

Employees

6,500

Industry

Software - Infrastructure

Exchange

NYSE

Signal Flags

3 green1 yellow

Operating leverage expandingOperating income growing faster than revenue

Deferred revenue growingRevenue and deferred revenue both growing — retention signal

Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak

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

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%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

14.4%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 2.7% — per-share value needs a total required return of 17.1% once share-count change is priced in.

vs. own 6-year median revenue growth: 50.8%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

9.7%

r = 10% (base)

14.4%

r = 12%

18.4%

Net debt / market cap: -5.1%

Note: current FCF margin is 1.6σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $608M3Y mean FCF: $335.7M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

2.7xCheap

2.7xmed 3.5x5.7x

P / B

Price / book value per share

7.9xCheap

5.2xmed 8.6x14.4x

P / GP

Price / gross profit per share

10.5xCheap

10.5xmed 18.5x61.6x

P / FCF

Price / free cash flow per share

27.6xCheap

27.6xmed 72.7x126.8x

Earnings bubble check

Current margins may be above sustainable levels — a P/E based on peak earnings can overstate cheapness.

Gross margin25.9% now vs 18.4%–25.9% 10yr range

1.6σ above average

Operating margin4.7% now vs -14.1%–4.7% 10yr range

1.7σ above average

FCF margin9.9% now vs -6.3%–9.9% 10yr range

1.6σ above average

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

Profitability

Gross profitability (GP / assets)

0.50

Primary signal (Novy-Marx).

6th of 13 SIC 7374 peers

Return on equity

16.7%

Gross margin

25.9%

12th of 13 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

	2022	2023	2024	2025
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)

—

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.56

4th of 11 SIC 7374 peers (best = lowest)

Current ratio

2.40×

5th of 13 SIC 7374 peers

Quick ratio

1.05×

Net cash

$1.01B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$608.00M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.78

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

3.9%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

2020-2025

20202025

Hypergrowth

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