Toast’s Q4 Sales Rise 22% to $1.63 B, EBITDA Beats but Guidance Miss Sparks 6.7% Drop
Toast reported Q4 sales of $1.63 billion, up 22% year-on-year, with GAAP EPS of $0.16 per share, beating estimates by 33%, and adjusted EBITDA of $298 million, almost doubling projections. The company set 2026 EBITDA guidance at $785 million—below analysts’ $790.6 million forecast—prompting a 6.7% stock drop.
1. Q4 Financial Highlights
In Q4 CY2025, Toast delivered $1.63 billion in revenue, up 22% year-over-year, with GAAP EPS of $0.16 per share—a 33% beat—and adjusted EBITDA of $298 million, exceeding consensus by 98%.
2. 2026 EBITDA Guidance and Stock Reaction
The company projected $785 million in adjusted EBITDA for fiscal 2026, below analysts’ $790.6 million estimate, triggering a 6.7% decline in the share price upon release.
3. Profitability and Cash Flow Trends
Operating margin expanded to 5.2% from 2.4% a year earlier, free cash flow margin rose to 10.9%, and annual recurring revenue hit $2.05 billion (26% growth), while a negative CAC payback period highlights ongoing customer acquisition inefficiencies.