A February 17, 2026, report initiated a "Sell" rating on Toast, Inc. The analysis cites a valuation disconnected from the company's future outlook.
Toast guides for 20-22% recurring gross profit growth in fiscal year 2026. This forecast marks a deceleration from 34% growth in the prior year.
The report notes intense competition and low switching costs in the payment processing sector. Gross Payment Volume per location declined 1% year-over-year.
The data suggests a reliance on lower-volume customers and potential market saturation. This analysis follows the company's February 12 fourth-quarter earnings release.