Toast, Inc. (TOST) experienced a significant pre-market plunge of 5.01% on Friday, extending losses from the previous trading session.
The decline follows the company's release of its fourth-quarter 2025 financial results. While Toast reported earnings and revenue that exceeded analyst expectations, investors reacted negatively to the company's forward guidance. The adjusted EBITDA projections for the first quarter and full year 2026 appear to have disappointed the market.
Multiple investment firms have revised their outlook on the stock in response. JP Morgan, Needham, Jefferies, and Canaccord Genuity all cut their price targets for Toast, contributing to the negative sentiment in pre-market trading.