Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Toast, Inc.

TOST · NYSE · Technology

Fundamental quality

ATTRACTIVE

81

out of 100

Toast, Inc. earns a fundamental-quality score of 81 out of 100, profiling it as a company with solid fundamentals. Its score rests mainly on its growth (revenue +48%/yr). Its weakest area is its profitability (net margin 6.4%). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Toast sells the operating system of U.S. restaurants: point of sale, ordering, payments, payroll and reservations in one platform. It charges subscriptions plus a fee on every payment processed through its terminals.

What will shape its future

  • The pace at which it adds new restaurants and sells them more software modules.
  • The health of the restaurant industry, sensitive to consumer spending and labor costs.
  • Competition (Square, Clover, Lightspeed) in a still very fragmented market.

Breakdown by area

I.Growth
95

EPS growth: 150% · Revenue growth: 48%

II.Profitability
62

Net margin: 6.4% · ROE: 20.7%

III.Financial health
85

Net debt/EBITDA: -2.65x · FCF: 10.1%

Source: SEC EDGAR · TTM through 31/03/2026

The score combines growth, profitability and financial strength. Here its growth weighs in its favor, while its profitability drags it down the most.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Strengths

  • Growing earnings per share (150% annualized).
  • Revenue growing strongly (48% annualized).
  • Strong return on equity (ROE of 20.7%): it puts shareholder capital to good use.
  • It has turned profitable after years of losses.

Risks and weaknesses

  • Erratic free cash flow, with several years in the red.

Historical evolution

YearRevenueNet incomeFree cash flowNet debt
2020823-248-153-410
20211,705-487-10-809
20222,731-275-172-547
20233,865-24693-605
20244,96019306-903
20256,153342608-1,353

Between 2020 and 2025, revenue went from $823M to $6,153M (+648%) and net income went from -$248M to $342M (+238%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

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Is Toast, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Toast, Inc. a good company to invest in?

In terms of business quality, Toast, Inc. scores 81 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Toast, Inc. a profitable company?

Toast, Inc. is profitable, with a net margin of 6.4%, though a thin one.

Does Toast, Inc. have a lot of debt?

No. Toast, Inc. has a net cash position: more cash than debt.

Is Toast, Inc. growing?

Its revenue has grown 48% annualized in recent years and its earnings per share 150%, and without interruption since 2020.

Does Toast, Inc. generate cash?

Yes. It converts about 10.1% of its revenue into free cash flow.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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