Toast

TOST

Market cap $16.1B

MercadoLibre just registered its seventh straight year of growth above 30%, landing it in elite growth-stock territory. Toast's brand awareness is increasing, giving it a path to potentially quintuple its recurring revenue.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.

ValueAct was scooping up shares of Toast in Q4. Toast's stock got caught up in the recent sell-off of SaaS stocks.

A solid Q4 and FYE 2025. EPS in the Q beat by $0.04, and revenue was in line. FYE showed +24% revenue growth, EPS of $0.56 vs. $0.03 (2024). Even with rapid top-line growth, TOST has consistently grown margins: gross margins are up 190 bp Y/Y, and operating margins are up over 400 bp Y/Y. TOST BOD's added $500 million to its share repurchase program as FCF/share almost doubled from $0.52/sh (2024) to $1.00/sh (2025).

DoorDash's business is humming along nicely despite its steep decline. ServiceNow is a victim of the "SaaSpocalypse," but its sell-off appears to be way overdone.

Toast's new wins like Applebee's and Nordstrom support durable growth potential. Investors are watching for consistent profitability and free cash flow before treating Toast as a buy.

Toast (TOST) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.

BOSTON--(BUSINESS WIRE)--Toast Announces Participation at Morgan Stanley Technology, Media, and Telecom Conference.

Toast delivered strong FY25 results with 24% revenue growth, significant GAAP profitability, and robust free cash flow. TOST's valuation appears stretched on trailing metrics but is reasonable on forward PEG and EV/Sales, reflecting its scalable earnings profile. Key risks include the potential impact of the Credit Card Competition Act, which could pressure transaction fees and require costly infrastructure updates.

Toast turned in strong revenue growth and issued solid guidance. The stock looks very cheap at current levels.