TOST Stock Recent News

After a troubling start to the year, the market has bounced back remarkably. Some companies in particular have benefited tremendously from the renewed sense of optimism.

Zacks.com users have recently been watching Toast (TOST) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

The U.S. equity markets have been quite turbulent in 2025, affected by escalating geopolitical pressures, protectionist tariffs, and high interest rates. Not surprisingly, investors are shying away from high-growth, high-risk stocks and moving toward defensive plays.

Toast's cloud-based platform streamlines operations from POS to inventory and reservations. The fact that it is tailor made for the restaurant industry is a product competitive advantage. The company continues to improve its software making it more value adding and sticky. Its Menu Price Monitor and ToastIQ, leverages AI and Toast's unique data. The company had good Q1 2025 results as it added 6,000 net new locations and hit 24.3% revenue growth. Given its TAM, this revenue growth could continue on.

I see a path to $60 per share by summer 2026, driven by resilient fundamentals and a focused, restaurant-specific product offering. I'm not ignoring the risks, but Toast's fundamentals are simply too strong to overlook right now. I see a realistic path to $600 million in FCF over the next year, which justifies today's valuation.

Toast is transitioning from a point-of-sale provider to a full-stack restaurant operating system, making it indispensable to its customers. The company reported $1.34 billion in Q1 2025 revenue, a 24.4% increase, and achieved $56 million in net income, marking a major profitability milestone. Subscription revenue grew 38.4% to $209 million, reflecting Toast's successful pivot to high-margin, recurring SaaS revenue.

I am upgrading Toast to 'buy' with a $54.3 price target, as the company continues to demonstrate sustained growth and operating leverage despite near-term macro headwinds. Q1 FY25 saw strong revenue and profit growth, driven by high-margin Subscription Services and disciplined cost control, with free cash flow outpacing EPS. Momentum in the US market, major enterprise wins like Applebee's, and AI innovation are expanding Toast's TAM and deepening customer adoption.

Stocks that are hitting new highs, especially on top of growing demand for their products, can signal a long-term winner. The following growth stocks pulled back along with the market sell-off this year before strong first-quarter earnings results sent them to new highs.

The median household income in the U.S. was just over $80,000 in 2023, according to the Census Bureau. It's probably still right around that level in 2025.

Toast (TOST) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.