Question · Q4 2025
Tien-tsin Wong asked if Toast's current margin framework allows for increased R&D investment to capitalize on new AI opportunities and tools, inquiring about the balance between leaning into innovation and achieving margin expansion targets.
Answer
CFO Elena Gomez confirmed that the margin framework allows for R&D investment to sustain long-term growth, stating that the 40% long-term margin target remains unchanged and the pace of achieving it is controllable. CEO Aman Narang reinforced the commitment to building a generational company, emphasizing that current R&D investments are aimed at serving a much larger TAM and increasing platform impact, prioritizing long-term growth over shorter-term margin expansion.
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