Added to YB: 2026-08-27
Pitch date: 2026-08-20
TOST [neutral]
Toast, Inc.
+4.2%
current return
Author Info
Bob’s Payment Stock Substack is a former analyst and portfolio manager. Fundamental buy-and-hold investor. Talking stocks and markets. Focus on Payments, Financial Technology, and Payroll and HCM. Sign up for the newsletter.
Company Info
Toast, Inc. operates a cloud-based digital technology platform for the restaurant industry in the United States, Ireland, India, and internationally.
Market Cap
$21.2B
Pitch Price
$35.48
Price Target
N/A
Dividend
N/A
EV/EBITDA
40.05
P/E
46.79
EV/Sales
2.87
Sector
Financial Services
Category
growth
Payments and FinTech Earnings Recap: Q2 2026 - Toast, Inc.
TOST (earnings): Q2 solid: 28% recurring GP growth, record 9.5k net location adds (+1k YoY), 22% GPV growth (steady, but didn't accelerate despite better domestic spend). Take rate 49.8bps (+1bp YoY); SaaS ARPU +5% (7th straight qtr 4-6%). New markets (intl/enterprise/F&B retail) on track for $200MM ARR by FY26-end, ~2x YoY. Core SMB: 20% recurring GP growth, >40% adj EBITDA margin. Toast IQ Grow tracking to fastest product to $10MM ARR. Raised FY26 adj EBITDA guide by less than Q2 beat — reinvesting $10MM tariff refund. Hardware pre-buys hit FCF, pressure 2027 hardware margins. Valuation: ~33x EV/2026 EBITDA (SBC-burdened); author says back to 'too expensive.'
Read full article (2 min)