Toast Q4 revenue slightly beats estimates

Toast

12/02/2026 21:20

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)