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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