Toast, Inc. (TOST) experienced a significant 6.12% plunge in after-hours trading on Thursday, following the release of its fourth-quarter financial results. The drop represents a sharp reversal from an initial positive reaction to the earnings report.

The company reported quarterly earnings of $0.16 per diluted share, surpassing analyst estimates of $0.12. Revenue also exceeded expectations, coming in at $1.63 billion compared to the anticipated $1.62 billion. Despite these beats, investors appeared concerned about the company's forward guidance.

Toast issued adjusted EBITDA guidance of $160 million to $170 million for the first quarter and $775 million to $795 million for the full year 2026. The market's negative reaction suggests these projections may have fallen short of investor expectations, leading to the sharp decline in after-hours trading.