Toast Inc (NYSE:TOST) shares are trading lower in Thursday’s after-hours session after the company reported financial results for the fourth quarter. Here’s what you need to know.

Toast Beats Estimates In Q4

  • Q4 Revenue: $1.63 billion, versus estimates of $1.62 billion
  • Q4 EPS: 16 cents, versus estimates of 13 cents

Annualized recurring run-rate (ARR) grew 26% to over $2 billion as of Dec. 31, 2025. Gross Payment Volume (GPV) increased 22% year-over-year to $51.4 billion.

Toast said total locations increased 22% year-over-year to approximately 164,000 after adding 30,000 locations in 2025.

“We have momentum across the business — we’re scaling our core restaurant business, accelerating growth in new markets, increasing platform adoption, and investing with focus,” said Aman Narang, CEO of Toast.

Toast’s board authorized an increase of $500 million to the company’s previously authorized share repurchase program.

What’s Next For Toast?

Toast expects first-quarter subscription services and financial technology solutions gross profit in the range of $505 million to $515 million, representing growth of 22% to 24%. Adjusted EBITDA in the first quarter is expected to be between $160 million and $170 million.

Toast executives are currently discussing the quarter on a conference call that started at 5 p.m. ET.

Toast Shares Get Burned After Hours

TOST Price Action: Toast shares were down 8.11% in after-hours, trading at $24.02 at the time of publication on Thursday, according to Benzinga Pro.

Image: Shutterstock.com