Toast Inc. (NYSE:TOST) is one of the best new tech stocks to invest in now. On February 12, Toast reported its 2025 earnings report, which was highlighted by a 33% increase in recurring gross profit and an expanded adjusted EBITDA margin of 34%. The company added more than 30,000 net locations to its platform, ending the year with a total of 164,000 locations and surpassing $2 billion in ARR. In Q4 alone, the company’s revenue totaled $1.6 billion, which was a 22.05% improvement year-over-year.
Toast successfully moved into new markets and expanded its enterprise footprint by signing major brands such as Applebee’s and Firehouse Subs, alongside a successful launch in Australia. The company introduced over 500 new features, including the Toast IQ conversational AI assistant, to enhance platform value and operational efficiency. Despite these gains, the company noted some headwinds, including higher hardware costs driven by memory chip demand and tariffs, as well as a drag on SaaS ARR per location as international and enterprise segments continue to scale.
For 2026, Toast projects recurring gross profit growth between 20% and 22%, with adjusted EBITDA guidance set at $775 to $795 million. Management remains focused on long-term expansion through R&D investments in AI and new product rollouts, such as a dedicated drive-thru solution.
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Toast Inc. (NYSE:TOST) operates a cloud-based digital technology platform for the restaurant industry in the US, Ireland, India, and internationally.
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