Stock Track | Toast Plunges 7.99% After-Hours Despite Earnings Beat as Guidance Disappoints

Stock Track
Feb 13

Toast, Inc. (TOST) experienced a significant after-hours plunge of 7.99% on Thursday, following the release of its fourth-quarter financial results. The drop came after 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.

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