Toast, Inc.

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Сильный индекс, незначительно упал. Рынок не поддерживает быков.

Strong index, slightly down. The market does not support the bulls.

Средний индекс, значительно упал. Отток средств из лонгов увеличился и находится на высоком уровне.

Medium index, significantly down. The outflow of funds from longs has increased and is at a high level.

Key Points
Toast is still reporting strong growth, and it has 180,000 locations as of the end of the second quarter.
The restaurant tech specialist is adding AI agents to make its platform more useful for clients.
Toast stock isn't cheap, but it's reasonably priced and worth investor consideration.
Toast (NYSE: TOST) is a fast-growing digital restaurant platform, and its products can be life-changing for the chains and individual restaurant owners that sign up. Long gone are the days when a waiter or waitress would pull a pencil from behind their ear and write down your order; today, everything from menus to payments are digital, and Toast saves companies money by automating and connecting all of their activities.
Toast stock, though, hasn't performed particularly well since its 2021 debut. This year, it's down almost 9% despite excellent performance. Here's why, and whether it's a buy right now.
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9,500 new locations
Adding a platform like Toast to a restaurant is a no-brainer, and it's been racking up a high customer count as traditional and new locations alike hop on board. It added 9,500 new locations in the 2026 second quarter, a 22% increase over last year, for a total of 180,000.
It has reported strong sales growth since the beginning, and it's keeping up that trend. It uses annualized recurring run rate (ARR) as its top-line metric, and here's how it's been growing over the past four quarters:
Metric
Q3 2025
Q4 2025
Q1 2026
Q2 2026
ARR growth
30%
26%
26%
25%
It also turned net income positive last year, and profits have been increasing since then.
AI, SaaS, and Toast's opportunities
Toast was one of the software-as-a-service (SaaS) stocks that were crushed when agentic artificial intelligence (AI) was popularized last year. The market's thinking was that clients would cancel subscriptions to SaaS stocks if they could have AI agents doing the tasks instead.
However, most SaaS stocks went on the offensive, integrating AI agents into their software to offer greater value to their clients. The AI angle has become a benefit instead of a drag.
Toast has transformed its platform through AI, and its data analytics, paired with AI agents, makes it that much more valuable to busy clients. CEO Aman Narang noted that clients who were on the platform were still too busy to take full advantage of what it offers and ended up outsourcing tasks like payroll and marketing. Now, they can plug in AI agents on the platform to get more use out of it.
He pointed out that Toast has tons of data from 14 years of operations that it can interpret for customers. "We know what a smart menu change looks like versus a bad one, when a staffing pattern signals trouble, and which pricing moves hold up in a given market," he said.
Is Toast stock a buy?
Toast stock trades at 41 times trailing-12-month earnings and 19 times forward one-year earnings, implying an expected increase in earnings. It hit an all-time low P/E ratio before the second-quarter report, and the higher post-report multiple indicates that at current growth rates, the market thought it was oversold.
I wouldn't call Toast a bargain today, but it's a well-run company with long-term opportunity, and a small position could make sense for investors with some appetite for risk.
Should you buy stock in Toast right now?
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Is Toast Stock a Buy After a Record 9,500-Restaurant Quarter?

Key Points
Shares of restaurant technology specialist have slumped over 40% since the stock went public in late 2021.
The company is increasing its AI capabilities and deepening relationships with Google and Adyen.
Shares of Toast (NYSE: TOST) have largely underperformed since the company's public market debut in 2021. The restaurant-technology business may be moving into a new era, though, and investors might see Toast reheated soon.
Toast's fundamentals are looking better. The company beat second-quarter expectations, and its earnings per share (EPS) almost doubled year over year. Toast raised its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance for Q3 to $220 million. A slew of analysts increased their price targets on the good news.
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The company continues to add new restaurants to its customer base while simultaneously increasing the number of transactions it processes. It's also investing in artificial intelligence (AI) tools that will help customers with order taking and administrative tasks, and generate valuable customer insights. Lastly, Toast expanded its integrations with Alphabet's Google and entered into a new partnership with the Dutch payments company Adyen.
Investors have been scared off by the consistent insider selling, including by the CEO and chief revenue officer. The company's valuation is still a bit rich in my opinion. Despite the stock declining 15% in the past year and more than 44% since its initial public offering (IPO), the trailing price-to-earnings (P/E) ratio still sits in the mid-40s.
The company is competing with powerhouse Square, which Block owns. Square has a slight advantage in market share, but Toast could gain ground as it focuses on its Google integration and partnerships.
Toast has an expanding platform and customer base; it added 9,500 new net customers in its latest quarter. I'm cautiously optimistic that there is room for this stock to run over the next few years as its metrics continue to improve. Investors will still need a bit of patience and appetite for Toast's volatility, however. Ultimately, I like where Toast is heading.
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Is Toast a Good Buy Right Now?

Key Points
The disposal of 13,931 shares was valued at ~$501,700 based on a weighted average execution price of $36.03 per share.
The transaction represented 17% of the insider's direct stock position.
Following the sale, Vassil retains ~154,000 shares, including 84,269 shares held indirectly through The Jonathan S. Vassil Grantor Retained Annuity Trust #1.
Jonathan Vassil, Chief Revenue Officer of Toast, Inc. (NYSE:TOST), sold 13,931 shares of Class A Common Stock on August 19, 2026, according to a recent SEC Form 4 filing.
Transaction summary
Shares sold (directly held)
13,931
Transaction value
$501,655
Post-transaction shares
154,235
Post-transaction shares (directly held)
69,966
Post-transaction shares (indirectly held)
84,269
Post-transaction value
$5.42 million
Transaction value based on SEC Form 4 weighted average sale price ($36.01); post-transaction value based on August 19, 2026 market close ($35.16).
Key questions
What was the nature of this derivative activity?
The transaction involved the exercise of 13,931 stock options at a strike price of $17.33 and $17.38, with the resulting shares sold immediately at a weighted average price of $36.01. Jonathan Vassil continues to hold 451,111 direct derivative securities, which include both vested and unvested awards.
How does this sale align with current market valuation?
The weighted average sale price of $36.01 was higher than the $35.16 at the August 19, 2026 market close. This disposal occurred against a backdrop of a -16% one-year total return, although shares are up over 50% in the past three months as of the transaction date.
What is the extent of the insider's remaining beneficial ownership?
Vassil maintains a significant equity interest in the company through a combination of 69,966 direct shares, 84,269 shares held indirectly by a grantor retained annuity trust, and the aforementioned 451,111 stock options. The current direct and indirect stock position represents an insider ownership stake of 0.0266%.
Company Overview
Share Price (as of market close 2026-08-20)
$35.32
Market Capitalization
$20.5 billion
Revenue (TTM)
$6.8 billion
Net Income (TTM)
$486.0 million
Company Snapshot
Toast, Inc. delivers a comprehensive cloud-based digital technology platform specifically designed for the restaurant industry, featuring an extensive product suite that includes the Toast Point of Sale (POS) system, Toast Flex terminals, and integrated hardware solutions that serve as foundational technology infrastructure for small business operations.
The company generates revenue through a software-as-a-service (SaaS) model, licensing its cloud-based platform and point-of-sale solutions to small business operators, while also deriving revenue from hardware sales, payment processing services, and value-added software features that enhance operational efficiency.
Toast serves small businesses across the United States and internationally, targeting independent and multi-unit operators seeking integrated digital solutions to streamline order management, payment processing, kitchen operations, and customer engagement.
Toast, Inc. operates as a leading provider of cloud-based restaurant management software with a market cap of $20.5 billion and trailing 12-month revenue of $6.8 billion, demonstrating significant scale within the restaurant technology sector.
The company's competitive advantage derives from its vertically integrated platform approach, combining point-of-sale systems, payment processing, kitchen display systems, and customer engagement tools into a unified ecosystem designed specifically for restaurant operations. With 6,500 employees and a presence across North America and internationally, Toast has established itself as a critical infrastructure provider for the modern restaurant industry.
What this transaction means for investors
Chief Revenue Officer Jonathan Vassil's Aug. 19 sale of Toast stock came at a time when shares soared more than 50% in the past three months. That said, the timing was opportune for him since this was a non-discretionary transaction executed as part of a pre-arranged Rule 10b5-1 plan, established in March of 2026.
Such plans allow insiders to sell shares at predetermined times to avoid concerns of trading on non-public information. Moreover, Vassil retains a sizable equity stake in Toast, post transaction. His ~154,000 shares combined with over 450,000 stock options ensure continued alignment with shareholder interests.
Toast stock has been on an upswing recently thanks to strong business performance. In the second quarter, the company reported revenue of $1.9 billion, up from $1.6 billion in 2025, as it experienced a 22% year-over-year increase in new customer locations. This helped it achieve net income of $154 million compared with $80 million in the prior year.
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Toast's Chief Revenue Officer Sells Nearly 14,000 Shares as the Stock Rises Over 50% in the Past 3 Months

The NASDAQ 100 Pre-Market Indicator is down -393.83 to 29,601.55. The total Pre-Market volume is currently 104,146,140 shares traded.
The following are the most active stocks for the pre-market session:
Dynatrace, Inc. (DT) is unchanged at $47.61, with 5,738,924 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2026. The consensus EPS forecast is $0.28. As reported by Zacks, the current mean recommendation for DT is in the "buy range".
Nokia Corporation (NOK) is -0.38 at $10.40, with 4,383,707 shares traded. As reported by Zacks, the current mean recommendation for NOK is in the "buy range".
ProShares UltraPro QQQ (TQQQ) is -2.83 at $73.57, with 4,378,219 shares traded. This represents a 97.13% increase from its 52 Week Low.
Intel Corporation (INTC) is -4.74 at $98.75, with 3,613,844 shares traded. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2026. The consensus EPS forecast is $0.28. INTC's current last sale is 88.96% of the target price of $111.
Direxion Daily MU Bull 2X ETF (MUU) is -3.3183 at $31.69, with 3,531,136 shares traded. This represents a 3,103.45% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is +1.37 at $37.79, with 3,355,812 shares traded. This represents a 5.8% increase from its 52 Week Low.
Space Exploration Technologies Corp. (SPCX) is -3.87 at $142.36, with 3,012,779 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2026. The consensus EPS forecast is $0.09. As reported by Zacks, the current mean recommendation for SPCX is in the "buy range".
UiPath, Inc. (PATH) is -0.68 at $15.31, with 2,658,413 shares traded. PATH's current last sale is 117.77% of the target price of $13.
GraniteShares 2x Short SK Hynix Daily ETF (SKDD) is +1.01 at $10.49, with 2,632,392 shares traded. This represents a 21.48% increase from its 52 Week Low.
Klarna Group plc (KLAR) is -3.69 at $15.82, with 2,270,034 shares traded. KLAR's current last sale is 68.78% of the target price of $23.
Toast, Inc. (TOST) is +0.0314 at $34.35, with 1,121,812 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2027. The consensus EPS forecast is $0.36. As reported by Zacks, the current mean recommendation for TOST is in the "buy range".
Alibaba Group Holding Limited (BABA) is +3.9036 at $128.61, with 893,137 shares traded.BABA is scheduled to provide an earnings report on 8/20/2026, for the fiscal quarter ending Jun2026. The consensus earnings per share forecast is 1.77 per share, which represents a 189 percent increase over the EPS one Year Ago

Pre-Market Most Active for Aug 18, 2026 : DT, NOK, TQQQ, INTC, MUU, SQQQ, SPCX, PATH, SKDD, KLAR, TOST, BABA

Block, Inc. XYZ has entered the second half of 2026 with stronger operating momentum, improving profitability and several growth initiatives across Cash App and Square. The fintech company is also putting more focus on connecting its consumer and merchant ecosystems, while investments in artificial intelligence are aimed at improving product development and efficiency. This gives investors more to consider than a simple earnings beat.
XYZ shares had considerably advanced in 2026 heading into second-quarter earnings, reflecting renewed confidence in Block's execution. The stock fell more than 6% on Aug. 6 after the results as investors weighed higher planned investments against stronger earnings and guidance. Through Aug. 12, XYZ remained below its pre-results level. Over the broader period, Block's performance has compared favorably with PayPal Holdings PYPL, while Toast TOST has also seen notable swings as investors reassessed growth expectations across fintech and payments.
The key question now is whether Block can maintain stronger growth and margins while stepping up spending on sales, product development and AI. Its second-quarter results provided encouraging evidence, but the balance between growth investment and operating discipline remains important.
Block’s Q2 Results Shows Better Growth and Profitability
Block delivered second-quarter adjusted EPS of $1.02, while revenues rose 9% year over year to $6.62 billion. Gross profit increased 25% from the prior-year period. More important for the longer-term earnings story, adjusted operating income reached $864 million, and the adjusted operating margin hit a record 27%.
Cash App remained the stronger growth engine, with gross profit rising 31% year over year. Monthly transacting actives increased 3% in June, while Cash App Commerce Enablement volume climbed 17%, and consumer lending origination volume increased 59%. Block is seeking to deepen engagement rather than relying only on user additions, an approach that could support monetization even if active-user growth remains modest.
Square also showed better momentum. Gross profit and gross payment volume both increased 13%, while U.S. GPV growth accelerated to its strongest pace since the second quarter of 2023. Management said new seller additions through independent sales organization partners increased more than 150% sequentially as Block continued expanding its distribution channels.
XYZ’s Raised Guidance Adds Support
Management increased its 2026 outlook following the stronger first half. Block now expects gross profit of $12.51 billion, representing 21% year-over-year growth, along with adjusted operating income of $3.47 billion and a 28% margin. Adjusted EPS is expected to grow 70% for the full year. For the third quarter, management expects gross profit growth of 18% and another 28% adjusted operating margin.
The raised outlook is encouraging because it reflects more than the second-quarter beat. Management said performance heading into the third quarter remained healthy, with Square GPV growth in July consistent with second-quarter strength and Cash App inflows and monetization trends remaining solid.
New Products Could Broaden Growth of Block
Block is also trying to create stronger links between Square and Cash App. Neighborhoods is an important part of that effort. Annualized seller GPV on the platform crossed $1 billion in June, up 220% year over year, while seller onboarding accelerated sharply into July.
Product development has accelerated as well. Block said code changes per engineer increased 150% since the start of 2026, while Square shipped 130 features during the first half, more than three times the number delivered in the comparable 2025 period.
The opportunity comes with added costs. Management plans to increase investment in go-to-market efforts, Neighborhoods and AI when it sees attractive returns. This strategy could support longer-term growth, but investors will want evidence that higher spending does not interrupt recent margin progress.
XYZ’s Earnings Estimate Revision Trends Upward
The Zacks Consensus Estimate for Block’s 2026 sales calls for a year-over-year rise of 7.50%, while that for earnings per share (EPS) suggests a 65.40% increase year over year. EPS estimates for both 2026 and 2027 have been trending upward over the past month.
Image Source: Zacks Investment Research
XYZ's Valuation Remains Reasonable
Block's valuation looks more balanced after its earnings and profit growth improved, although it should be viewed alongside expectations for continued execution. In terms of forward 12-month Price/Earnings (P/E), Block is trading at 17.05X, which is at a discount to Toast’s 21.32X, but at a premium to PayPal’s 10.50X.
Block's premium to PayPal can be supported if gross-profit growth remains strong and margins continue expanding. At the same time, comparisons with Toast show that investors are already willing to pay more for faster payments and merchant-technology growth, leaving Block with less room for execution setbacks.
Valuation
What Should Investors Do With XYZ Stock?
Block's second-quarter report strengthened the investment case without removing the reasons for caution. Gross profit growth accelerated, profitability reached record levels, and management raised its full-year outlook. Square's improving GPV trends and deeper Cash App engagement also provide several ways to sustain growth into 2027.
Still, the post-earnings share-price decline shows that investors are watching spending closely. Cash App active growth remains modest, lending growth should normalize, and increased AI and sales investments could limit additional margin expansion if returns take time to emerge. For existing investors, the improving fundamentals support staying with the position while waiting for clearer evidence that Block can sustain stronger growth and disciplined spending together.
At present, Block carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Stay Invested in Block Stock After Its Q2 Earnings Beat?

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Toast (TOST) Q2 2026 Earnings Call Transcript

Key Points
The CFO of Toast reported selling 17,076 shares for a total transaction value of approximately $602,441, based on weighted-average execution prices.
The disposition reduced the CFO's direct equity holdings in the company by 9%.
The transaction was executed via a pre-established Rule 10b5-1 trading plan and was non-discretionary in nature.
Elena Gomez, the president and CFO of Toast, Inc. (NYSE:TOST), sold 17,076 shares of Class A Common Stock on August 5 and August 6, according to an SEC Form 4 filing.
Transaction summary
Transaction value
~$602,441
Shares sold
17,076
Post-transaction shares (directly held)
168,074
Post-transaction value
$5.8 million
Transaction value based on SEC Form 4 weighted average sale price ($35.28); post-transaction value based on the August 6 market close ($34.72).
Key questions
What was the mechanism for this transaction?
The sale was conducted under a Rule 10b5-1 trading plan adopted by Gomez on December 12, 2025. This allows for automated, scheduled transactions that help insiders manage liquidity while adhering to regulatory standards regarding material non-public information.
How does this impact the insider's long-term position?
The sale of 17,076 shares reduced the CFO's direct Class A Common Stock position by 9% to nearly 168,000 shares. In addition to these direct holdings, the reporting owner also holds derivative securities that contribute to her total beneficial ownership interest.
What has been the recent share price trajectory for Toast?
As of the August 6 market close, shares of Toast were priced at $34.72. This represents a 24% decline over the 12 months preceding the transaction date.
What is the scale of Elena Gomez's remaining equity stake?
Despite the recent disposition, Gomez maintains a direct ownership stake representing approximately 0.03% of the company's outstanding equity. This position carries a market valuation of $5.84 million as of the August 6 market close.
Company Overview
Share Price (as of market close 2026-08-06)
$34.72
Market Capitalization
$20.1 billion
Revenue (TTM)
$6.8 billion
Net Income (TTM)
$486.0 million
Company Snapshot
Toast delivers a comprehensive cloud-based digital technology platform specifically designed for the restaurant sector, offering an extensive product suite that includes hardware solutions such as the Toast Point of Sale (POS) system and Toast Flex, which functions as an on-counter order and payment terminal, server workstation, guest kiosk, kitchen display system, and order fulfillment device.
The company operates a subscription-based software business model supplemented by hardware sales and ancillary services, generating recurring revenue from restaurant operators who rely on Toast's integrated platform for point-of-sale, payment processing, inventory management, and operational efficiency.
Toast primarily serves independent and multi-unit restaurant operators across the United States and Ireland, targeting establishments seeking comprehensive digital transformation solutions to streamline operations and enhance customer engagement.
Toast, Inc. is a leading provider of cloud-based restaurant management software with a market capitalization of $20.1 billion and TTM revenue of $6.8 billion, demonstrating significant scale within the restaurant technology sector. The company's competitive advantage derives from its vertically integrated platform combining point-of-sale systems, payment processing, and operational management tools specifically engineered for restaurant workflows. With a presence across North America and Ireland, Toast maintains a strong position in the digital transformation of the foodservice industry.
What this transaction means for investors
Unlike a low-strike option cash-in, as was the case with a Toast CRO transaction last week, this was a straight sale of shares Gomez already held, run through a plan she set in December. That plan sells on a schedule regardless of price, and Gomez kept close to 168,000 shares, so her stake stays substantial.
The disconnect between the stock and the business is more notable here. On the latestearnings call Gomez boasted that firm has cleared what investors call the Rule of 50, with its recurring gross profit growth plus operating margin hitting 57%, a mark few software companies reach and a sign of unusual balance between growth and profit. Meanwhile, annual recurring revenue rose 25% to $2.4 billion. CEO Aman Narang credited "the strength we have across the business." Shares have recovered from lows in May, but they’re still down 20% over the past year. Ultimately, a company clearing the Rule of 50 while its stock drops is the kind of gap that either closes as results keep compounding or signals the market sees a risk the numbers do not yet show. Upcoming quarters should clarify where exactly Toast stands.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $581,599!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $59,719!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $399,832!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of August 10, 2026.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Toast. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

A Toast Insider Sold $600,000 in Stock on a Plan. Here's What to Know

Key Points
The disposition involved 4,700 shares at $36.02 per share, totaling $169,294 on August 5.
Vassil maintains direct ownership of 69,966 shares and indirect ownership of 84,269 shares through the Jonathan S. Vassil Grantor Retained Annuity Trust #1.
The transaction was executed under a Rule 10b5-1 trading plan.
Jonathan Vassil, the chief revenue officer of Toast, Inc. (NYSE:TOST), sold 4,700 shares of Class A Common Stock on August 5, according to an SEC Form 4 filing.
Transaction summary
Shares sold
4,700
Transaction value
$169,294
Post-transaction shares (total)
154,235
Post-transaction shares (directly held)
69,966
Post-transaction shares (indirectly held)
84,269
Transaction value based on SEC Form 4 weighted average sale price ($36.02); post-transaction value based on the August 5 market close ($34.80).
Key questions
What was the mechanism behind this disposition?
The transaction was a "same-day" exercise and sell, where Vassil exercised 4,700 options at strike prices of $17.33 and $17.38, and immediately sold them at a weighted average price of $36.02. This activity was pre-scheduled under a Rule 10b5-1 trading plan adopted on March 13.
How does this affect the insider's total exposure to the company?
Following the sale, Vassil retains approximately 154,235 shares across direct and indirect accounts. Furthermore, the insider continues to hold close to 500,000 derivative securities.
What is the breakdown of the indirect equity holdings?
The reported 84,269 indirect shares are held specifically by the Jonathan S. Vassil Grantor Retained Annuity Trust #1, a structure typically utilized for estate and tax planning rather than immediate market liquidity.
How has the stock performed leading up to this transaction?
Toast shares were priced at $34.80 at the August 5 market close, reflecting a one-year return of -20% as of that date.
Company Overview
Share Price (as of market close 2026-08-06)
$34.72
Market Capitalization
$20.1 billion
Revenue (TTM)
$6.8 billion
Net Income (TTM)
$486.0 million
Company Snapshot
Toast, Inc. delivers a comprehensive cloud-based digital technology platform specifically designed for the restaurant sector, featuring a suite of hardware and software solutions including the Toast Point of Sale (POS) system, Toast Flex terminals, and integrated kitchen management tools that serve as primary revenue generators.
The company operates a subscription-based and transaction-fee business model, generating recurring revenue from software licensing, cloud services, and hardware sales while capturing incremental revenue through payment processing and value-added services for restaurant operators.
Toast serves restaurant operators across the United States and Ireland, ranging from independent establishments to multi-unit operators, positioning itself as a critical infrastructure provider for the foodservice industry.
Toast, Inc. operates as a leading cloud-based software infrastructure provider for the restaurant industry, with a market capitalization of $20.1 billion and TTM revenues of $6.8 billion. The company leverages its integrated platform combining point-of-sale systems, kitchen management, and payment processing to create substantial switching costs and cross-selling opportunities within its customer base. Toast's competitive positioning is reinforced by its comprehensive, purpose-built solution architecture that addresses the complex operational requirements of modern restaurant businesses.
What this transaction means for investors
The options behind this sale were struck at $17.33 and $17.38, so with Toast near $36, Vassil was converting a grant worth roughly $19 a share in profit, old equity finally cashed in under a plan he set back in March. He sold a modest slice, kept more than 150,000 shares plus close to 500,000 in options, and even routed part of his holdings through an estate-planning trust, so this is very likely just portfolio housekeeping by a chief revenue officer.
Meanwhile, Toast stock has had a very volatile stretch over the past year, plunging over 50% from last year's highs through May, before recouping some losses and surging over 50% since. Bolstering performance in recent months, the company added a record 9,500 net locations last quarter, grew annual recurring revenue 25% to $2.4 billion, and nearly doubled net income to $154 million. CEO Aman Narang pointed to "the strength we have across the business." The reason the market is staying cool might be partly Toast's own choice, since management is plowing its earnings back into AI, international, and retail rather than letting profit expand faster. That reinvestment is the real swing factor, because Toast is betting near-term margin to chase a much larger market, and long-term investors should stay focused on the payoff.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $581,599!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $59,719!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $399,832!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of August 10, 2026.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Toast. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

A Toast Insider Cashed In Options as the Stock Recouped Losses. Here's What to Know

Key Points
Toast continues to deliver strong revenue and profit growth.
The stock looks cheap given its growth prospects.
After its shares sank by more than 35% at the start of the year, Toast (NYSE: TOST) stock has come roaring back since the spring to near breakeven for the year.
The combination of mixed restaurant industry sales and the software-as-a-service (SaaS) sell-off contributed to its poor early stock performance, but the company itself continued to hit on all cylinders. That was seen again in the second quarter, with the restaurant software and payments company once again delivering strong results.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
An AI winner
While Toast had been dumped in the AI loser bucket with other software companies, that narrative makes even less sense for Toast. First, its focus is on a sprawling industry of millions of small and medium-sized restaurant operators that aren't particularly tech savvy. Frontier model companies aren't going to look to put together the salesforce to sell into this market, and these companies aren't going to vibe code their own solutions.
Meanwhile, Toast's own AI-powered solutions have been gaining traction. Its AI-powered marketing agentic AI tool Toast IQ Grow is on track to become its fastest-ever solution to reach $10 million in annual recurring revenue (ARR), as restaurants are seeing great outcomes with it. In addition, the company is looking to expand its agentic AI platform into other areas like payroll, scheduling, tax, and bookkeeping. Things like dynamic menu and margin optimization tools, and predictive labor scheduling can have big impacts for restaurant operators that survive on slim margins, and these are the types of modules that can really help grow its ARPU (average revenue per user) over the long term.
Toast's Q2 results once again showed the company is thriving, with its revenue climbing 23% to $1.91 billion. Subscription revenue jumped 28% to $290 million, while financial technology revenue rose by 23%. Toast's GPV (gross payment volume), which is the payments the company processes for its restaurant customers, increased by 22% to $60.7 billion. It had a 59-basis-point fintech take rate and a 50-basis-point payments take rate.
ARR, meanwhile, surged by 25% to $2.4 billion. For Toast, ARR is the sum of its annualized subscription revenue and the gross profit from its payment processing business. Because there is a wide gap in gross margin between its two main revenue sources (subscriptions and payments), this is considered the company's most important metric.
Toast added 9,500 new locations in the period, a new quarterly record. It now serves 180,000 locations, up 22% year over year.
Earnings per share (EPS) doubled from $0.13 a year ago to $0.26 in the quarter, although that included a $10 million tariff refund. Otherwise, it looks like adjusted EPS would have been around $0.24. Excluding the tariff refund, adjusted EBITDA jumped 31% to $211 million.
Looking ahead, Toast once again raised its full-year forecast. It now expects its 2026 subscription services and fintech gross profit to be in a range of $2.325 billion to $2.355 billion, representing 23% to 25% growth. That's up from a prior outlook of $2.29 billion to $2.32 billion and original guidance of $2.27 billion to $2.30 billion.
The company is looking for adjusted EBITDA of $805 million to $825 million, up from prior guidance of $790 million to $810 million and an original forecast of $775 million to $795 million.
For Q3, Toast projected subscription services and fintech gross profit of $615 million to $625 million, equating to 22% to 24% growth. It's looking for adjusted EBITDA to land in the $210 million to $220 million range.
Can the stock's momentum continue?
Toast continues to deliver strong results, with revenue growth consistently in the low 20% range and ARR growth in the mid-20% range. The company continues to do a great job of adding new locations, while it's been making great progress in newer areas like international, chains, and grocery stores, where aggregate ARR is projected to double this year to $200 million.
Toast stock now trades at an enterprise value-to-ARR multiple of below 8 times its 2026 ARR guidance. On a forward P/E basis, it trades at 20 times 2027 analyst estimates. That's still a great valuation for a company with Toast's consistent 20%-plus ARR growth and long growth runway. As such, the stock should have plenty of continued upside from here.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $581,599!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $59,719!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $399,724!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of August 9, 2026.
Geoffrey Seiler has positions in Toast. The Motley Fool has positions in and recommends Toast. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Toast Stock a Bargain AI Play After Its Latest Revenue Surge?

Key Points
Aman Narang liquidated ~138,000 shares for ~$4.9 million on Aug. 5, 2026, and Aug. 6, 2026.
The transaction reduced the CEO's total reported equity holdings by 21%.
All sales were executed indirectly through the Starlight 2026 Charitable Remainder Trust.
The activity was pre-arranged under a Rule 10b5-1 trading plan established on March 13, 2026.
Aman Narang, CEO of Toast, Inc. (NYSE:TOST), reported a sale of 138,052 shares for ~$4.9 million. SEC Form 4 filing.
Transaction summary
Transaction value
$4.9 million
Shares sold (indirectly held)
138,052
Post-transaction shares (directly held)
70,451
Post-transaction shares (indirectly held)
462,698
Post-transaction value
$18.51 million
Transaction value based on SEC Form 4 weighted average sale price ($35.27); post-transaction value based on August 06, 2026, market close ($34.72).
Key questions
What was the regulatory structure governing this liquidity event?
The sales were conducted pursuant to a Rule 10b5-1 trading plan adopted by the Starlight 2026 Charitable Remainder Trust on March 13, 2026, which allows for automated execution of trades to mitigate potential conflicts of interest.
How is the CEO's remaining equity distributed across different entities?
Following this disposition, Narang retains 70,451 shares held directly, while another 462,698 shares are held indirectly through the Starlight 2026 Charitable Remainder Trust, The Narang Family Trust, and Starlight 2026 Trust LLC.
How does the execution price compare to the company's recent performance?
Narang realized a weighted average price of $35.27 per share in this transaction, while the stock has delivered a negative return of 24% over the one-year period ending Aug. 6, 2026.
What is the company's current scale and financial profile?
As of the Aug. 6, 2026 market close, the firm has a market capitalization of $20.1 billion and reported trailing twelve-month revenue of $6.8 billion with a net income of $486.0 million.
Company Overview
Share Price (as of market close 2026-08-06)
$34.72
Market Capitalization
$20.1 billion
Revenue (TTM)
$6.8 billion
Net Income (TTM)
$486.0 million
Company Snapshot
Toast delivers a comprehensive cloud-based digital technology platform specifically designed for the restaurant sector, offering an extensive product suite that includes hardware solutions such as the Toast Point of Sale (POS) system and Toast Flex, which functions as an on-counter order and payment terminal, server workstation, guest kiosk, kitchen display system, and order fulfillment device.
The company operates a subscription-based software business model supplemented by hardware sales and ancillary services, generating recurring revenue from restaurant operators who rely on Toast's integrated platform for point-of-sale, payment processing, inventory management, and operational efficiency.
Toast primarily serves independent and multi-unit restaurant operators across the United States and Ireland, targeting establishments seeking comprehensive digital transformation solutions to streamline operations and enhance customer engagement.
Toast, Inc. is a leading provider of cloud-based restaurant management software with a market capitalization of $20.1 billion and TTM revenue of $6.8 billion, demonstrating significant scale within the restaurant technology sector. The company's competitive advantage derives from its vertically integrated platform combining point-of-sale systems, payment processing, and operational management tools specifically engineered for restaurant workflows. With 6,500 employees and a presence across North America and Ireland, Toast maintains a strong position in the digital transformation of the foodservice industry.
What this transaction means for investors
Overall, it doesn’t appear that CEO Narang’s $5 million sale is anything for investors to worry about. The transaction was pre-planned and executed for a charitable trust, rather than anything the CEO was doing with his own cash in response to the stock’s performance. Furthermore, the CEO and co-founder of Toast holds a massive voting position in Toast’s class B shares that dwarfs this sale.
The real focus for Toast investors should remain on the company’s ability to strengthen its leadership position in the dining industry, as AI poses a threat to its operations. While there may be some mega-customers, like Starbucks, that are large enough to try to create their own Toast replacement (of sorts), I think these AI fears are largely overblown. Toast’s recent results back that notion as its suite of hardware, software, and services differentiates it from a vibe-coded app. ARR, total locations, and gross payment volume rose by 25%, 22%, and 22% in the company’s latest quarter. That said, investors will want to watch Toast’s profit margins going forward as fee compression from peers could limit its ultimate profitability.
Toast also still trades at 44 times earnings, so I wouldn’t necessarily go “all-in” at today’s price; instead, I’d add to the stock over time, as a slowdown in growth could prompt a re-rating of the valuation. Over the long haul, Toast should be able to continue delivering double-digit sales and net income growth by not only adding new clients but also expanding into adjacent verticals and adding new features to sell to existing customers, as it grabs a larger slice of the pie.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $581,599!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $59,719!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $399,724!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of August 8, 2026.
Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Toast. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	42.61 13.03
Price/Sales	2.49 2.18
P/B	9.62 1.23
P/FCF	35.55 10.61

Indicator	TTM Median
ROE	23.79 11.06
ROA	13.76 1.26
ROI	0.00 7.84
Net Worth	20.11 1.01
Quick Ratio	2.31 1.42
Current Ratio	2.44 0.98

Indicator	TTM Median
Net Profit Margin	6.39 17.61
Operating Margin	6.33 25.00
Gross Margin	26.72 71.94
Return on tangible equity	25.36 12.96

Indicator	TTM Median
EPS	0.26 0.71
EPS Forecast	0.23 0.70
Revenue	1.63B 90.00M
Gross Profit	447.00M —
EBITDA	142.00M —

Toast, Inc.

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue