Toast reported Q4 CY2025 revenue of $1.63 billion, marking a 22% year-over-year increase that exceeded analyst estimates. The company posted a GAAP EPS of $0.16, beating market expectations by 33.1%. Adjusted EBITDA reached $298 million for the quarter, significantly surpassing internal and external forecasts.
Management issued full-year 2026 EBITDA guidance between $775 million and $795 million, which missed analyst projections and triggered an initial sell-off. The stock fell 6.71% to $26.14 on February 12 following the announcement. Retail investors characterized the stock as overvalued despite sustained demand for the company's AI product offerings.
Shares recovered 4.55% on February 13 to close at $27.33, with after-hours trading reaching $27.41. This rebound aligned with broader technology sector volatility and cooling inflation data. Positive futures and a general market recovery supported the price stabilization following the holiday closure.