Overview
Hospitality tech platform's Q4 revenue slightly beat analyst expectations
Net income for Q4 rose significantly compared to last year
Company authorized $500 mln increase to share repurchase program
Outlook
Toast expects Q1 2026 non-GAAP gross profit between $505 mln and $515 mln
Company projects full-year 2026 adjusted EBITDA between $775 mln and $795 mln
Result Drivers
NET LOCATION GROWTH - Toast added a record 30,000 net locations in 2025, including 8,000 in Q4, boosting ARR by 26%
GROSS PROFIT INCREASE - GAAP subscription services and financial technology solutions gross profit rose 29% year over year to $487 mln in Q4
STRATEGIC PARTNERSHIPS - Agreement with MTY Food Group to roll out Toast across 1,000 Papa Murphy’s US locations expanded market presence
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Beat* | $1.63 bln | $1.62 bln (21 Analysts) |
Q4 Net Income | $101 mln | ||
Q4 Annual Recurring Revenue | $2 bln | ||
Q4 Gross Profit | $423 mln | ||
Q4 Operating Expenses | $338 mln | ||
Q4 Operating Income | $85 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Toast Inc is $45.00, about 60.6% above its February 11 closing price of $28.02
The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 50 three months ago
Press Release: ID:nBw9DdmrKa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)