Toast: Impressive Sales Trends In A Tough Restaurant Macro
Toast remains a compelling buy amid market rotation, with misunderstood growth and oversold shares despite robust fundamentals. TOST trades at 14.5x EV/FY26 adjusted EBITDA, with EBITDA growing over 30% y/y and stock-based comp declining to under 2% of market cap. Q1 revenue grew 22% y/y to $1.63B, showing no deceleration despite industry headwinds; 7k new paid locations added, up 22% y/y.