Toast: BlackRock reports 10% stake in Class A shares

Toast announced that Jonathan Vassil will step down as Chief Revenue Officer on December 31, 2026, as part of his planned retirement. He will continue as a non-executive employee through April 2, 2027. The company did not disclose a replacement or any disagreements with Vassil's departure.

Jefferies views Toast's (NYSE: TOST) recent share decline as a buying opportunity, citing its market position, pricing power, and AI product traction. The bank expects Q3 estimates to be met, with potential upside from hardware discounts and cash incentives. Toast's new $10,000 sign-up promotion suggests higher-value prospects. Shares have fallen 19% in the past month, underperforming peers. Jefferies raised its EPS estimates for 2026 and 2027.

Toast's NTM price-to-earnings multiple fell to 19.36x, its lowest since IPO, despite Q2 earnings beat and raised guidance. Analysts increased price targets to $38.92, but insiders sold shares. Free cash flow margin dropped to 6.81% due to inventory buildup, raising concerns.

Toast (TOST), a digital restaurant management service provider, reported 25% year-over-year growth in annualized recurring revenue and a 37% adjusted EBITDA margin in Q2. The company aims for a 40% margin, with CEO Aman Narang noting mature segments already exceeding this target. Toast added 9,500 locations, including new clients like Kung Fu Tea and TGI Friday's U.K. locations. The stock is down 6% year-to-date, but management remains optimistic about future growth and expansion into new market

Toast (TOST) reported Q2 revenue of $1.91B, up 23%, with net income of $154M. The payments business drove $360M in gross profit, while subscription services had higher margins. Hardware and services had negative gross margins. The company uses payments to attract customers for higher-margin services.

Toast Inc. (TOST) shares fell 6% post-earnings, missing Q4 profit estimates ($0.17 EPS vs. $0.24 expected) despite a 22% revenue increase to $1.63B. The company added new restaurant clients and launched Toast IQ, an AI assistant. Shares are down 26% YTD, with a market cap of $13.5B. Retail sentiment is mixed, with some calling the stock overvalued.