Toast, Inc. (TOST) is a cloud-based, all-in-one digital technology platform designed specifically for the restaurant industry. The company offers a comprehensive suite of software-as-a-service (SaaS) products and financial technology solutions, including integrated payment processing and restaurant-grade hardware. Toast serves as the restaurant operating system, connecting front-of-house and back-of-house operations across various service models such as dine-in, takeout, delivery, catering, and retail.
- Financial Technology Solutions - Facilitates payment transactions through transaction-based fees and includes marketing and servicing working capital loans through Toast Capital.
- Subscription Services - Provides access to Toast's software applications over a term of 12 to 36 months, with fees based on location, software products purchased, hardware configuration, and employee count.
- Hardware and Professional Services - Sells hardware such as terminals, tablets, and handhelds, and offers professional services like installation, configuration, and training.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Aman Narang ExecutiveBoard | Chief Executive Officer | None | Co-Founder of Toast, instrumental in scaling the company, led various functions, and contributed to its public offering. | View Report → |
Stephen Fredette ExecutiveBoard | President | None | Co-Founder and President, previously Co-President and CEO, significant management experience. | |
Elena Gomez Executive | Chief Financial Officer | Board Member at Smartsheet Inc. and PagerDuty, Inc. | CFO since May 2021, previously CFO at Zendesk, held senior finance roles at Salesforce. | |
Gail Miller Executive | Chief Accounting Officer | None | Appointed CAO in Feb 2025, previously CAO at Remitly Global, Inc. and Shift4 Payments, Inc. | |
David Yuan Board | Director | General Partner at Tidemark Capital, Board Member at Karbon, Inc. and Kajabi LLC | Extensive experience in venture capital and technology industries. | |
Deval L. Patrick Board | Director | Senior Advisor to The Vistria Group, Professor at Harvard Kennedy School, Board Member at Cerevel Therapeutics Holdings, Inc. and Twilio Inc. | Extensive leadership experience, commitment to public interest, and corporate social impact. | |
Hilarie Koplow-McAdams Board | Director | Venture Partner at New Enterprise Associates, Board Member at Zendesk, Inc. | Extensive experience in leadership roles at technology companies, including New Relic and Tableau Software. | |
Kent Bennett Board | Director | Partner at Bessemer Venture Partners | Investment professional with extensive experience in venture capital, serving on boards of various privately held companies. | |
Mark Hawkins Board | Chairperson of the Board | Board Member at SecureWorks Inc., Cloudflare, Inc., and Workday, Inc. | Chairperson since Jan 2024, former Lead Independent Director, extensive leadership and financial roles at Salesforce, Autodesk, and Logitech. | |
Susan E. Chapman-Hughes Board | Director | Board Member at The J.M. Smucker Company | Former Executive VP at American Express, extensive experience in finance and operations. |
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Your GPV per location has declined approximately 3% year-over-year for consecutive quarters, and you expect this trend to continue into Q4. What are the underlying factors driving this decline, and how do you plan to address them?
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Operating expenses increased 11% year-over-year in Q3, with sales and marketing expenses up 25% and R&D expenses up 5%. How do you justify these increased investments amidst declining GPV per location, and what return on investment do you expect?
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Churn remains slightly above 10% on an annualized basis, primarily impacting smaller restaurants. What strategies are you implementing to reduce churn among these smaller clients and improve overall retention?
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You added approximately 7,000 net locations this quarter. Can you provide a breakdown between new restaurant openings and competitive takeaways, and how sustainable is this level of net adds in the current market environment?
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You are investing more in TAM expansion areas like retail and international markets next year. Given the early stages of these ventures and increased operating expenses, how confident are you that these investments will yield profitable returns, and what are the main risks you foresee?
Research analysts who have asked questions during Toast earnings calls.
Dan Dolev
Mizuho Financial Group
6 questions for TOST
Timothy Chiodo
UBS Group AG
6 questions for TOST
Josh Baer
Morgan Stanley
5 questions for TOST
Samad Samana
Jefferies
5 questions for TOST
Darrin Peller
Wolfe Research, LLC
4 questions for TOST
David Hynes
Canaccord Genuity Group Inc.
4 questions for TOST
Dominic Ball
Redburn Atlantic
4 questions for TOST
Harshita Rawat
AllianceBernstein
3 questions for TOST
Jason Kupferberg
Bank of America
3 questions for TOST
Will Nance
Goldman Sachs
3 questions for TOST
Andrew Bauch
Wells Fargo & Company
2 questions for TOST
Ryana Kumar
Oppenheimer
2 questions for TOST
Stephen Sheldon
William Blair
2 questions for TOST
Stephen Sheldon
William Blair & Company
2 questions for TOST
William Nance
The Goldman Sachs Group, Inc.
2 questions for TOST
Bryan Keane
Deutsche Bank
1 question for TOST
David Koning
Robert W. Baird & Co.
1 question for TOST
Joshua Baer
Morgan Stanley
1 question for TOST
Matt Coad
Truist Securities
1 question for TOST
Nick Setyan
Wedbush Securities
1 question for TOST
Rayna Kumar
Oppenheimer & Co. Inc.
1 question for TOST
Tien-tsin Huang
JPMorgan Chase & Co.
1 question for TOST
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Delphi Display Systems, Inc. | 2023 | Toast, Inc. acquired Delphi Display Systems for $10 million on February 14, 2023, allocating the purchase price into goodwill, intangible assets, and other net assets to enhance its drive-thru technology and digital menu solutions for QSRs. |
Sling, Inc. | 2022 | Toast, Inc. completed its acquisition of Sling, Inc. on July 6, 2022 for $49 million, which included a mix of cash, escrow funds, deferred consideration, and stock issuance to management, positioning Toast to expand its scheduling and communication solutions that improve team management for restaurant operations. |
Recent press releases and 8-K filings for TOST.
- Toast reported strong Q3 2025 results, including 34% top-line growth and 35% adjusted EBITDA margins, which expanded 5 percentage points year-over-year.
- The company achieved a significant milestone, surpassing $2 billion in Annual Recurring Revenue (ARR) for the first time, with both payments and SaaS ARR each exceeding $1 billion.
- Total fintech and subscription gross profit, representing recurring gross profit streams, increased 34% year-over-year, driven by a total take rate of 98 basis points, up 7 basis points from a year ago.
- Toast added approximately 7,500 net locations in Q3, bringing the total to 156,000 locations, a 23% increase year-over-year, and anticipates increased net adds in both 2025 and 2026.
- New market segments (enterprise, international, and food and beverage retail) are on pace to collectively reach $100 million in ARR this year and are expected to be significant drivers of future net adds and market share expansion.
- Toast reported strong Q3 2025 results, with ARR crossing $2 billion and growing 30% year-over-year, while total fintech and subscription gross profit increased 34%. Adjusted EBITDA reached $176 million, with margins expanding to 35%.
- The company added approximately 7,500 net locations in Q3, bringing the total to 156,000 locations, a 23% increase year-over-year. International SaaS ARPU is up 20% year-over-year, and new AI-driven products like Toast IQ and Toast Advertising are seeing significant adoption and impact.
- Toast raised its full-year 2025 outlook, now expecting 32% growth in fintech and subscription gross profit and $615 million in adjusted EBITDA at the midpoint. The company also anticipates sustaining over 20% growth in 2026 with stable to slightly increased margins.
- Year-to-date through Q3 2025, Toast repurchased 1.5 million shares for $54 million.
- Toast delivered strong Q3 2025 results, achieving 34% top-line growth and 35% margins, and for the first time, surpassed $2 billion in ARR.
- Total fintech and subscription gross profit, which are recurring gross profit streams, increased 34% year-over-year, while adjusted EBITDA reached $176 million with a 35% margin.
- The company added approximately 7,500 net locations in Q3, bringing the total to 156,000 locations, a 23% increase from a year ago.
- Toast raised its full-year 2025 outlook, now expecting 32% growth in fintech and subscription gross profit and $615 million in adjusted EBITDA at the midpoint.
- Strategic growth areas, including enterprise, international, and food and beverage retail, are collectively on pace to reach $100 million in ARR this year, and the new AI assistant, Toast IQ, has been used by over 25,000 restaurants more than 235,000 times since early October.
- Toast reported strong financial results for Q3 2025, with Annualized Recurring Run-rate (ARR) growing 30% to over $2.0 billion as of September 30, 2025, and Adjusted EBITDA reaching $176 million.
- The company added approximately 7,500 net new Locations in Q3 2025, bringing the total to approximately 156,000 locations globally, and Gross Payment Volume (GPV) increased 24% year over year to $51.5 billion.
- GAAP net income for Q3 2025 was $105 million, compared to $56 million in Q3 2024.
- Toast provided an outlook for Q4 2025, expecting Adjusted EBITDA in the range of $140 million to $150 million. For the full year 2025, Adjusted EBITDA is projected to be between $610 million and $620 million.
- Recent business highlights include the launch of Toast IQ and Toast Advertising, a strategic global partnership with Uber Technologies, Inc., and securing large-scale operators such as Nordstrom and TGI Fridays.
- Toast (NYSE: TOST) has expanded its Toast IQ intelligence ecosystem with a conversational AI assistant for restaurants and food and beverage retailers, leveraging real-time and historical data from approximately 148,000 customer locations.
- The new AI assistant provides personalized recommendations, allows users to ask complex business questions, and enables direct actions like updating menus or editing shifts within a single conversational interface.
- Toast is collaborating with The Coca-Cola Company to create an exclusive AI-powered feature within Toast IQ designed to optimize menus and improve beverage sales.
- Toast IQ is currently available to all U.S. customers on iOS and Android via the Toast Now mobile app and Toast Web, with future plans for international availability and expanded capabilities.
- Toast reported strong Q2 2025 results, with recurring gross profits growing 35% year-over-year and Adjusted EBITDA reaching $161 million.
- The company added a record 8,500 net new locations, bringing the total to 148,000 locations. New customer segments, including enterprise, international, and food & beverage retail, now account for over 10,000 live locations and are on track to exceed $100 million in ARR collectively by year-end.
- Toast raised its full-year 2025 guidance, now expecting 29% growth in FinTech and subscription gross profit and $575 million in Adjusted EBITDA at the midpoint.
- Strategic developments include the launch in Australia as its fourth international market and a new partnership with American Express to enhance diner experiences.
- Toast Inc. has a market capitalization of $27 billion and is being considered for potential S&P 500 inclusion by year-end due to achieving consecutive quarters of GAAP profitability.
- The company has demonstrated strong financial performance, with revenue growing at a 50% CAGR over the last five years and profit margins increasing for five consecutive years.
- Operating margins have significantly improved from negative 4% at the end of 2023 to 3.7% and continue to rise.
- Toast is expanding its market reach through large enterprise deals with clients like Marriott and Applebee's, suggesting a potentially larger Total Addressable Market (TAM) than currently estimated.
- Toast's stock has shown strong performance, up 4.5% this week and nearly 22% year-to-date, with a market capitalization of $25 billion.
- Josh Brown believes Toast is on the verge of reaching a new 52-week high, surpassing its previous high of $45 hit in mid-May.
- The company has effectively dominated the restaurant and hospitality space for payments, becoming an industry standard, and is securing larger enterprise deals with clients such as Applebee's and the entire Marriott chain.
- Toast is demonstrating rare cash flow growth and high client retention, with significant international expansion potential yet to be realized.
- US market share growth: Toast has increased its restaurant market share from 10% to 15% over the past two years by focusing on its core restaurant strategy and improving AE productivity.
- Enterprise business wins: The company is expanding its enterprise segment with significant wins, including Applebee’s and Topgolf, by enhancing its capabilities for large chain operations.
- AI-driven product innovation: Toast is investing in AI technologies through products like Sous-Chef and ToastIQ to improve customer service and operational efficiency.
- International and capital strategy: The firm is strategically pursuing international expansion and managing capital risk through disciplined lending practices.
- Robust profitability: Adjusted EBITDA of $133 million ( ), GAAP net income of $56 million (), and operating income of $43 million ( ).
- Strong recurring revenue & transaction growth: ARR increased 31% to $1.7 billion ( ), subscription revenue up 38% (), and Gross Payment Volume reached $42.2 billion ().
- Operational expansion: Added over 6,000 net new locations to reach approximately 140,000 locations, marking a 25% YoY increase ( ).
- Secured major partnership: Signed its largest deal to date with Applebee’s ().
- Upgraded guidance: Raised full-year outlook expecting record net adds in Q2 and full-year adjusted EBITDA of $550 million with improved margins ().