Toast 4Q25 Key Takeaways

Toast reported a strong 4Q25 with a significant beat in net location adds and revenue, but the stock fell after-hours amid sector-wide software valuation compression. Goldman Sachs maintains a Neutral rating with a lowered price target of $31, citing valuation headwinds despite solid operational execution.

Key Takeaways

• 1.Toast reported 4Q25 revenue and EBITDA beats, notably driven by 8k net new location adds which exceeded consensus expectations of 7k.
• 2.Despite the operational beat, shares declined in after-hours trading due to investor negativity toward high-multiple growth and software stocks.
• 3.Full year 2026 EBITDA guidance includes a 150 basis point headwind from rising memory prices.

Table of Contents

• 4Q25 Results:
• Guidance:
• Exhibit 1: TOST Act vs Est
• Exhibit 2: TOST Guidance
• Exhibit 3: Valuation Methodology
• Disclosure Appendix
• Price target and rating history chart(s)
• Regulatory disclosures
• Ratings, coverage universe and related definitions

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