Wall Street expects Toast to report Q1 revenue of $1.63 billion and an adjusted EPS of $0.16, with the stock currently trading near $29.11 against a consensus price target of $40.16.
Investors are primarily focused on the growth of recurring gross profit, specifically the combined non-GAAP subscription and financial technology gross profit, which is guided between $505 million and $515 million.
Following a mixed Q4 performance that saw a significant EPS miss despite revenue strength, the market is looking for evidence that enterprise-tier rollouts and the recent 'Toast Drive-Thru' launch are successfully diversifying the customer base.
Sustaining location growth above the 160,000 threshold remains critical as the company balances aggressive market share gains with long-term adjusted EBITDA margin targets of 40%.