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, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Средний индекс, без изменений. Отток средств из лонгов на высоком уровне.

Medium index, flat. Outflow of funds from longs at a high level.

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ARK Blockchain & Fintech Innovation ETF (Symbol: ARKF) where we have detected an approximate $96.4 million dollar outflow -- that's a 10.9% decrease week over week (from 19,300,000 to 17,200,000). Among the largest underlying components of ARKF, in trading today Block Inc (Symbol: XYZ) is up about 1.4%, Toast Inc (Symbol: TOST) is up about 2.8%, and Ark Blockchain & Fintech Innovation Etf (Symbol: ARKF) is lower by about 0.7%. For a complete list of holdings, visit the ARKF Holdings page » The chart below shows the one year price performance of ARKF, versus its 200 day moving average:
Looking at the chart above, ARKF's low point in its 52 week range is $35.8219 per share, with $58.79 as the 52 week high point — that compares with a last trade of $45.60. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further ARKF Research:

ARKF, XYZ, TOST, ARKF: ETF Outflow Alert

Key Points
Toast has a long-term goal to reach an adjusted EBITDA-to-gross-profit margin of 40%.
It recently launched an AI agent that allows users to accomplish much more and get insights from data.
Toast is entering new spaces and adding new services that encompass a larger addressable market than its core business.
Toast (NYSE: TOST) is an exciting company that provides digital restaurant management services for clients all over the world. It's been growing beautifully since it went public in 2021, and it has also become profitable.
Its stock, on the other hand, hasn't done very well for investors. It's down 17% from its first-day closing price and 6% this year.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
However, management is confident in its future prospects, and the market might finally get on board as the company approaches its long-term goals. Let's see where a $1,000 investment could be over the next few years.
The linchpin in restaurant management
Toast provides a connected restaurant management platform that unifies all parts of the operation, from backroom financial services like supply orders and accounts payable to on-the-floor tools like digital menus and point-of-sale devices. This saves time and money.
For example, a placed order can go straight to the kitchen with a click, and the system integrates with many partner platforms, such as Uber Eats and American Express's Resy reservation platform.
As a software-as-a-service (SaaS) company, Toast was on the receiving end of last year's backlash against SaaS companies. The market was worried that AI agents would replace, or at least damage, many of these companies. But Toast, like other SaaS powerhouses, is using AI to its advantage. It recently rolled out its artificial intelligence (AI) product, Toast IQ. It's an AI agent that can accomplish tasks, like updating menus, as well as comb through data and provide analysis.
Despite market worries, Toast continues to demonstrate strength. It added 9,500 locations in the 2026 second quarter, a record that surpasses the previous high by 1,000. It has a total of 180,000 as of the end of the quarter. Some of the new clients include bubble tea chain Kung Fu Tea and an expanded partnership with TGI Friday's locations in the U.K.
Annualized recurring run rate (ARR), its favored top-line growth metric, increased 25% year over year, and net income rose from $80 million to $154 million.
Reaching its 40% margin goal
Although revenue, or in this case ARR, and net income are standard operating metrics, management charts its progress by gross profit and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Management's goal is to keep overhead expenses down such that 40% or more of all gross profit converts to adjusted EBITDA.
In the second quarter, this ratio reach 37%, as gross profit streams increased 28% year over year and adjusted EBITDA increased 37%. CEO Aman Narang says the mature core is already above 40%, with spending on international, retail, and enterprise holding the companywide figure below it.
The company is investing in new products and new revenue streams outside restaurants. It sees substantial opportunities to expand existing client relationships by offering streamlined services, such as marketing.
It has already entered the supermarket space, and it sees opportunities in retail and other areas that it expects to become major growth drivers over the next three to five years.
The current framework supports rapid growth and modest margin expansion. This "keeps us on a path to 40% plus long-term adjusted EBITDA margins with the timing firmly in our control," according to CFO Elena Gomez.
It's ahead of schedule. In 2024, the margin was only 19%, and management laid out a trajectory to reach 30%-35% margin in 2026/2027. This implies that as gross profit increases, expenses like marketing and research and development decrease. According to the full-year outlook, it's aiming for 34.8%.
So how long will it take Toast to reach 40%? Management hasn't updated the timing for reaching this milestone, but given its performance so far, it could happen soon. If adjusted EBITDA growth continues to outpace gross profit growth, the margin will continue to expand. Management says that the new markets are larger than the core markets, which means ARR and gross profit could increase many times over today's levels, and stringent efficiency should lead to higher adjusted EBITDA. Over time, a $1,000 investment in Toast could increase many times as well.
Should you buy stock in Toast right now?
Before you buy stock in Toast, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Toast wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $406,141!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,347,745!*
Now, it’s worth noting Stock Advisor’s total average return is 940% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 18, 2026.
American Express is an advertising partner of Motley Fool Money. Jennifer Saibil has positions in American Express. The Motley Fool has positions in and recommends American Express and Toast. The Motley Fool recommends Uber Technologies and recommends the following options: long January 2028 $15 calls on Toast. The Motley Fool has a disclosure policy.

What Toast's 40% Margin Target Means for a $1,000 Investment Today

Key Points
Toast is posting very strong sales and earnings growth, but the stock is still down nearly 11% year to date.
Continuing to establish a strong performance track record and branching into new categories could spur big gains for the stock.
Toast (NYSE: TOST) is a provider of digital payments and management software services for restaurants and other businesses. The company grew its revenue by roughly 23% year over year to $1.91 billion last quarter, and net income surged 92.5% to roughly $154 million.
Despite very strong sales and earnings expansion, investors have seemingly been hesitant to pay a valuation premium to own a piece of Toast's growth story. With the stock trading at roughly 20 times 2026's expected earnings, shares could actually be significantly underpriced compared to the rate at which the business is growing its profits.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
What would have to happen for investors to pay more for Toast stock?
A combination of consistency and new growth wins could power gains for Toast
Toast's recent business performance suggests the company may not need to do anything radically different for its stock to eventually see substantial gains. While the stock is still down roughly 11% through 2026's trading, the company's second-quarter report, published at the beginning of August, helped drive strong gains in its share price.
Toast has continued to bring customers on board at an encouraging pace, with roughly 9,500 new customer locations added in the second quarter. The business also closed out the quarter with annualized recurring revenue of roughly $2.4 billion -- representing an increase of roughly 25% year over year.
The fintech specialist's core growth engine continues to look quite strong. Payment services continue to be the hook that brings most customers on board, but the company is also converting clients who use its payment tech into subscription-based business management software -- which has even higher margins.
While Toast's heavy focus on the restaurant industry may be causing some concern among investors, given the industry's historically high sensitivity to macroeconomic pressures, the company should be able to command higher valuation multiples if growth in its core market continues to be impressive.
In addition to the restaurant space, Toast is also expanding into other markets. With its Q2 report, the company introduced its payment services to gas stations. At the time of the company's Q2 report and conference call, it had only rolled out service to two gas-station customers -- but initiatives along these lines could be a substantial boon to Toast and its stock.
For starters, expanding into categories outside the restaurant industry will provide new revenue streams. Winning customers in new industries will also diversify the company's sales streams and help provide some fortification against macroeconomic pressures that can be particularly hard on the restaurant industry.
Should you buy stock in Toast right now?
Before you buy stock in Toast, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Toast wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $420,109!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,303,689!*
Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 17, 2026.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Toast. The Motley Fool recommends the following options: long January 2028 $15 calls on Toast. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

What Would It Take for Investors to Pay More for Toast Stock?

Key Points
Toast's payments business continued to drive gross profits and overall net income last quarter.
The company uses its payments business as the centerpiece of its growth engine.
Toast's payments platform helps win customers for its subscription services unit, which has even higher margins.
Toast (NYSE: TOST) is a leading provider of financial technology services for businesses in the restaurant industry. The business is growing rapidly and still seems to have a long runway for expansion, but some of its business segments are carrying a lot more weight on the profitability front than others.
In the second quarter, Toast's revenue grew 23% to reach roughly $1.91 billion. Meanwhile, the business posted net income of $154 million in the period -- good for a margin of roughly 80.7%. The company's payments business once again did the heavy lifting in driving profits, but the picture is also more nuanced.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Payments is Toast's biggest draw, but it has other strengths
In the second quarter, the financial technology solutions segment that includes Toast's payments business accounted for $1.57 billion of its overall sales in the period -- roughly 82.2% of the total pie. While the segment's total cost of revenue accounted for roughly $1.21 billion of the total $1.39 billion cost of sales in the quarter, it was still central to the business's gross profit of roughly $516 million in the quarter.
Notably, the company's hardware and professional services segment had a substantially negative gross margin in Q2. While the unit posted revenue of roughly $48 million in the period, it had a cost of revenue of $116 million -- and that doesn't factor in operating expenses for the segment.
Meanwhile, the company's subscription services segment posted revenue of roughly $290 million and had a cost of revenue of just $64 million. In other words, the subscriptions business was a net positive contributor of $226 million in gross profit for the quarter. On a gross margin basis, the subscription services business is by far Toast's most profitable.
On the other hand, the payments-focused financial technology solutions unit is the linchpin of the company's business model and accounts for the large majority of sales. The segment delivered a gross profit of roughly $360 million in the quarter.
The payments business holds Toast's business together. While the hardware business is posting negative gross margins, that shouldn't be surprising or concerning. By selling its payments and restaurant management hardware at a loss, the company is able to get the devices into the hands of customers who then use services with much higher margins.
Subscription services are notably much higher-margin than the payments-focused financial technology solutions segment. As Toast brings more customers on board through the core offering of its payment solutions, it has opportunities to acquire more clients for its subscription services and boost its overall margins substantially.
Should you buy stock in Toast right now?
Before you buy stock in Toast, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Toast wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $420,109!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,303,689!*
Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 16, 2026.
Keith Noonan 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.

Toast Turned $1.91 Billion in Revenue Into $154 Million in Profit. The Payments Half Is Doing the Heavy Lifting.

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.
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 »
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?
Before you buy stock in Toast, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Toast wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $417,413!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 12, 2026.
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Toast. The Motley Fool recommends the following options: long January 2028 $15 calls on Toast. The Motley Fool has a disclosure policy.

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.
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 »
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.
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 $544,464!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $59,793!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $439,308!*
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.
See the 3 stocks »
*Stock Advisor returns as of August 27, 2026.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adyen, Alphabet, Block, and Toast. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

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.
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 $557,604!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $59,011!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $429,223!*
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 24, 2026.
Robert Izquierdo 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.

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.
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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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Periodand min./max. price, $	Price change, %		Volatility, %		Volume, $
Periodand min./max. price, $	TOST	Industry	TOST	Industry	Volume, $
Yesterday 31.4 - 32.3	-3.52	3.61	3.90	2.15	223.35M
Week 31.4 - 33.4	-6.03	5.79	3.65	1.79	1.29B
Month 28.7 - 33.4	0.86	5.96	16.83	4.57	5.91B
3 Months 28.7 - 37.2	-4.72	8.96	22.40	9.43	15.74B
6 Months 22.3 - 37.2	6.61	8.05	32.68	15.42	29.81B
Year 22.3 - 39.7	-16.61	22.56	45.49	22.83	57.78B
3 years 13.8 - 49.7	86.97	22.66	82.84	46.38	142.53B
5 years 11.9 - 69.9	-42.12	11.86	133.30	61.35	189.45B
All time 11.9 - 69.9	-55.77	9.63	—	—	184.98B

Toast, Inc.

Price and volatility history

Risk ratios