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Toast, Inc. TOST

Toast, Inc. scores good on business quality (6.5 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$31.31Oct 10, 2026
Business qualityGood
Next earningsNov 2, 2026, after the close
Insiders, 90 daysSelling

Why it matters

  1. What Toast, Inc. does

    Toast sells restaurant-specific point-of-sale hardware and software to dining establishments, making money through subscription fees and payment processing. The company is scaling its platform to capture more market share across independent and enterprise eateries.

  2. What it does best

    Toast dominates restaurant point-of-sale integration, driving revenue growth of 24.1% over the latest period. Unlike general processors like PYPL with gross margins of 40.5%, Toast embeds hardware and software deeply into restaurant operations, creating severe switching friction.

  3. The main risk

    Toast carries a low gross margin of 26.7%, placing it in the bottom quartile of its sector at the 9th percentile. Low hardware margins leave little room for error if supply chain costs rise or restaurant spending slows down.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityWeak

Operating margin sits at a thin 6.4% while net margin is 7.1%, constrained by low gross margins of 26.7%, meaning profitability does not scale efficiently with volume yet.

MoatWeak

The moat is built on restaurant workflow integration, though a weak score of 3.0 and a bottom-quartile gross margin of 9th sector percentile reveal limited pricing power against rivals.

GrowthFast

Revenue surged to $6.8B, driven by rapid customer adoption that outpaces historical figures like $4.9B in 2024, showing accelerating top-line expansion.

Financial healthStrong

Toast holds zero total debt and a net cash position of $1.4B, shielding the balance sheet while generating $576M in free cash flow, getting stronger rapidly.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

5 sold $1.3M outside pre-planned sales.

Our sealed record on TOST

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is TOST a good business?

Toast, Inc. scores good on the Cluenex quality check (6.5 of 10), measured against its own industry. Profitability is weak, moat weak, growth fast and financial health strong.

Are insiders buying TOST?

In the last 90 days of SEC Form 4 filings: 5 sold $1.3M outside pre-planned sales.

When does TOST report earnings?

Nov 2, 2026, after the close.

For members

See TOST today

  • Today's verdict on TOST, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Toast, Inc. (TOST)”, https://cluenex.com/stocks/tost/, data as of Oct 10, 2026.