Toast, Inc. (TOST)
Vertical SaaSSaaS Metrics & Investor Data — Q1 2026
analyticsEditorial Financial Analysis
Financial Performance & Trajectory
Toast's financial trajectory reflects a maturing vertical SaaS platform scaling efficiently. Trailing revenue reached $6.15B in Q1 2026, up from $5.83B in Q3 2025, representing a sequential acceleration in year-over-year growth from 17.4% to 24.0%. This re-acceleration suggests strong execution within its restaurant vertical, likely driven by deeper penetration of payments and software modules. Gross margin has remained relatively stable in a tight band of 25.9% to 27.4%, consistent with a business model that blends high-margin subscription software with lower-margin payment processing. More critically, free cash flow margin improved dramatically from 1.9% in Q1 2026 to 10.5% in Q4 2025, indicating Toast is converting a larger share of revenue into cash as operating leverage kicks in.
Operational & Go-to-Market (GTM) Efficiency
Toast's Rule of 40 score has fluctuated between 25.9 and 34.5 over the observed periods, signaling a balanced trade-off between growth and profitability. The Q4 2025 print of 34.5 is particularly strong, reflecting the 24.1% growth combined with a 10.5% FCF margin. While Net Revenue Retention (NRR) and CAC payback metrics are not disclosed in this dataset, the improving Rule of 40 trajectory implies that Toast's reinvestment in R&D and sales is yielding acceptable returns. The company appears to be benefiting from a "land and expand" strategy, where initial POS hardware installations lead to higher-margin payments and software attach rates, driving unit economics that support the observed cash generation.
Market Valuation & Sentiment
Toast's enterprise value-to-revenue multiple has compressed from 2.7x in Q3 2025 to 2.3x in Q1 2026, reflecting a market that is cautiously pricing in slower growth despite the recent acceleration. The EV/Revenue of 2.3x is reasonable for a SaaS company growing at 24% with a 26% gross margin. Insider activity shows a net selling value of -$307.8K over the last 10 filings, a negligible amount that does not signal a bearish conviction. Wall Street remains constructive, with a consensus Buy rating (16 Buys, 14 Holds) and an average price target of $36.33, implying upside from current levels. The combination of operational re-acceleration and improving free cash flow generation suggests Toast is undervalued relative to its peers, provided it can sustain growth in the competitive restaurant tech landscape.
Disclaimer: The editorial financial analysis above is generated using data sourced from SEC EDGAR filings and Wall Street consensus ratings. This analysis is provided for informational and educational purposes only and does not constitute financial, investment, or professional advice. Readers should conduct their own research or consult with a registered financial advisor before making any investment decisions.
Toast, Inc. (TOST) is a Vertical SaaS SaaS company with a market cap of $15.1B as of Q1 2026. The company trades at 2.3x EV/Revenue and has delivered +24.0% revenue growth year-over-year. With a gross margin of 26% and FCF margin of 1.9%, Toast, Inc. scores 26 on the Rule of 40 — placing it in the median range of public SaaS companies tracked by SaaSDB.
compare_arrowsSector Benchmarking
Latest company metrics compared to the Vertical SaaS sector medians
EV/Revenue is 2.3x (sector median: 3.3x) — trading at a discount of 1.0x relative to peers.
Rule of 40 is 25.9% (sector median: 30.4%) — underperforming peers by 4.5%.
Revenue Growth is 24.0% (sector median: 15.5%) — outperforming peers by 8.5%.
Gross Margin is 26.3% (sector median: 74.2%) — underperforming peers by 47.9%.
FCF Margin is 1.9% (sector median: 11.9%) — underperforming peers by 10.0%.
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rocket_launchFounder & Operator Metrics
Not publicly disclosed by this company: Net Revenue Retention·Gross Retention·ARR·ARR Growth·CAC Payback
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Insider Trading Activity
90-Day Insider Sentiment: Bearish / Net Selling. Insiders executed 1 sell transactions (totaling $246K) with zero buys. Last activity on Mar 12, 2026.
Analyst Ratings
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