Toast, Inc. (TOST) Stock

Toast, Inc. (TOST) is a Technology stock trading at $29.05 (as of 2026-07-24), with a market capitalization of $17.49B and a trailing P/E of 42.4. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Toast, Inc. provides a cloud-based technology platform for restaurants, including point-of-sale hardware and mobile ordering and payment tools, such as Order & Pay and handheld or on-counter devices, along with related card payment readers. It also supplies software for kitchen display and multi-location restaurant management, and serves restaurants in the United States and Ireland.

Understand Toast, Inc.: how it makes money

Toast provides cloud-based and digital technology for restaurants, including point-of-sale hardware and ordering and payment tools, and it makes money mainly from Financial Technology Solutions and Subscription Services, with smaller contributions from Hardware and Professional Services.

Toast's profit model is scaled by restaurants using its live platform, where payments and recurring subscription revenue depend on transaction and payment volumes (reflected in Gross Payment Volume and take rates), not primarily on one-time hardware sales.

Revenue by segment (latest quarter)
FinTech	$1.3B
Subs	$0.3B
Hardware+Prof	$0.1B

Business quality (Mixed): The company has clear operating indicators tied to restaurant adoption and payments (Live Locations, Annual Recurring Revenue, and Gross Payment Volume). The segment breakdown provided maps most revenue to Financial Technology Solutions and Subscription Services, while Hardware and Professional Services are comparatively small.

Valuation: Trades at 37× trailing earnings · $15B market cap.

Bull case

Recurring revenue base: Annual Recurring Revenue is provided (USD_B 2.0), and Subscription Services Revenue is also reported (USD_B 0.27), supporting a recurring component to results.
Platform scale tied to payments: Live Locations are high (171,000), and net new locations added is positive (Net New Locations Added 8,000). Payments and fintech profitability signals are also provided (FinTech Net Take Rate 61, Payments Take Rate 51).

Bear case

Profitability can be sensitive to take rates and payment activity: Payments and fintech take rates (FinTech Net Take Rate 61, Payments Take Rate 51) and payment volume metrics are key operating drivers, so changes in these could pressure growth and margins.
Overall margins are not high: For the latest period, gross margin is 27.4% and operating margin is 6.7%, which leaves limited room if costs rise or monetization weakens.
Less diversification from hardware: Hardware and Professional Services Revenue is relatively small (USD_B 0.04), so results rely more on the Financial Technology Solutions and Subscription Services revenue streams.

Valuation — source: SEC EDGAR (first-party)
Price	$29.05
Market Cap	$17.49B
P/E Ratio	42.4
EV / EBITDA	38.8
Price / Book	8.79
Price / Sales	2.71
FCF Yield	3.7%
DCF Value (model)	$11.28
DCF Upside vs Price	-61.2%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$6.15B
Net Margin	5.6%
Revenue Growth (YoY)	21.9%
EPS Growth (YoY)	110.0%
FCF Growth (YoY)	66.7%

Financial Health — source: SEC EDGAR
Altman Z-Score	12.71 (safe)

Valuation vs Sector & Industry
Stock P/E	42.4
Sector P/E (Technology)	34.6
Industry P/E (Business Services)	29.7
vs Sector	22.7%
vs Industry	42.7%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($1.59B)
Institutional Holders Tracked	10

Company
Sector	Technology
Industry	Business Services
CEO	Aman Narang
Employees	5,700
Country	US
IPO Date	2021-09-22

Related Companies (Business model: SaaS / Subscription Software (Enterprise) + Payments Network / Acquirer / Closed-Loop / Fintech Wallet; 8 closest by market cap; US-domiciled)

Data as of 2026-07-24.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.