📈 Price History

Ratio Health

— Excellent

— Good

— Average

— Poor

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Shareholding

About

Toast, Inc. operates a cloud-based digital technology platform for the restaurant industry in the United States, Ireland, India, and internationally.

Key Ratios Snapshot

📊 Sector Averages

📈 Growth Pattern

⚡ Latest Quarter —

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⭐ Superinvestors Holding TOST

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Manager	Shares	Value	% of Fund	Period
Jeff Ubben ValueAct Holdings	12.90M	$341.9M	5.98%	Mar 2026
Jim Simons Renaissance Technologies LLC	4.32M	$114.6M	0.18%	Mar 2026
Cathie Wood ARK Investment Management	1.81M	$48.0M	0.37%	Mar 2026
Steve Cohen Point72 Asset Management	172.9K	$4.6M	0.01%	Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔍 Concall Decoded

🎙 Management Tone Tracker Mixed → Stable 4 quarters analysed

Q2 2025

Mixed

'ahead of expectations', 'record net adds', and 'strong momentum'. They provide numerous specific metrics (e.g., 8,500 net new locations, 35% recurring gross profit growth, $161M EBITDA) and raised full-year guidance.

Q3 2025

Mixed

'exceeded expectations', 'strong execution', and provides concrete metrics such as 34% top-line growth, 35% margins, $2B ARR, and specific customer wins (Nordstrom, TGI Fridays). Forward guidance is presented with clear numerical ranges.

Q4 2025

Mixed

'strong momentum', 'record net location adds', 'incredible accomplishment' and provided specific figures (30,000 net adds, 33% RGP growth, 34% EBITDA margin). They quantified adoption of Toast IQ (over half of locations, 1 million queries) and gave concrete examples (Carmine's, Papa Murphy's).

Q1 2026 latest

Mixed

'world-class results', 'record year', and repeatedly cites specific metrics (27% recurring gross profit growth, 21% GAAP operating margin, 7,000 net locations, 40,000 weekly active Toast IQ locations). They provide concrete examples of customer successes and product launches.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis is stronger after this call. Management demonstrated continued strong execution across growth (27% recurring gross profit growth) and profitability (21% GAAP operating margin, first time above 20%). The AI narrative is now backed by concrete traction: 40,000 weekly active locations, an 8% lift in sales from the new AI marketing agent, and engineering velocity up 60%. Expansion into enterprise, international, and retail is showing faster metrics than the core business at similar stages, suggesting these TAMs can meaningfully contribute over time. Tariff-related hardware costs and inventory build are near-term headwinds acknowledged by management, but they express confidence in managing margins and securing supply. Key to watch next quarter: momentum of Toast IQ adoption and monetization, enterprise bookings from Drive-Thru, any impact from tariff costs on hardware gross profit, and consumer spending trends given the down 1% GPV per location.

AI-generated concall tone analysis · Updated 2026-06-08 · Not investment advice

🎙 Management Tone Mixed → Stable 4 quarters Full tone analysis in Intelligence →

📊 MIXED Toast Q1 2026: 27% recurring gross profit growth, 21% GAAP operating margin, 7,000 net locations added.

Revenue & Profitability

ARR grew 26% year-over-year. Recurring gross profit streams increased 27%. GAAP operating income was $110 million, with GAAP EPS of $0.20. Adjusted EBITDA reached $179 million, representing a 34% margin. GPV was $51 billion, up 22%, while SaaS gross margin expanded to 81%. Free cash flow was $115 million. Total monetization take rate (recurring gross profit as a percentage of GPV) crossed 1% for the first time to 103 basis points.

Outlook

Management described consumer trends as stable, with Q1 GPV per location down 1% year-over-year but within a reasonable zone. Customers remain resilient across macro cycles. Positive tailwinds include the opportunity to expand from software to an agentic platform with AI, serving new TAMs (enterprise, international, retail), and driving productivity through AI. No specific macroeconomic headwinds were highlighted; management expressed confidence in sustained high growth over the next 5–10 years.

Growth Drivers

Key growth levers include: (1) evolving from a software platform to an agentic platform (e.g., Toast IQ Grow marketing agent showing 8% average sales lift), (2) expanding into enterprise with Drive-Thru and hotels, (3) international growth in tier 1 cities (Canada, UK, Ireland, Australia), and (4) retail, especially grocery (over 100 locations with >$5M sales). The Toast Local app more than doubled weekly downloads quarter-over-quarter. Net locations added 7,000 in Q1 2026.

Balance Sheet & CapEx

Not discussed explicitly as capital expenditure guidance but management noted strategic purchasing of memory chips and plans to hold more inventory in the near term, with the majority of cash impact expected in Q2. Free cash flow conversion for full year 2026 is expected to be slightly lower than 2025 due to this inventory build. Investments in AI tooling (R&D up 20% year-over-year) and go-to-market (sales & marketing up 20%) are ongoing.

Margins

GAAP operating income margin reached 21% for the first time. Adjusted EBITDA margin was 34%. SaaS gross margin expanded 300 basis points to 81%. Subscription gross profit growth outpaced top line at 32%. Total monetization take rate increased 5 basis points year-over-year to 103 basis points. Management reiterated a long-term target of 40%+ EBITDA margins. AI efficiencies (e.g., 40% of support interactions resolved by AI) are freeing capital to reinvest.

Key Risks

Management flagged tariff impacts on hardware costs, absorbing higher costs while maintaining healthy payback periods. The impact on margins is expected to be larger in 2027 than 2026, but management does not anticipate structural long-term effects. GPV per location declined 1% in Q1, but consumer trends are stable. No other notable risks were raised by management or analysts.

Generated by AI · Q1 2026 results · Not investment advice

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