Toast reported Q4 and full-year 2025 earnings on February 12, 2026, with earnings per share of $0.16. This result missed analyst estimates of $0.19 by 15.79%. The stock closed at $26.12, down 6.78%, before falling an additional 7.82% to $24.08 in after-hours trading.
Annualized Recurring Revenue grew 26% to surpass $2.0 billion. The company added a record 30,000 net locations during the period. Fourth-quarter Adjusted EBITDA reached $163 million. Management issued 2026 guidance projecting gross profit growth between 20% and 22%. The company also authorized a $500 million share repurchase program.
The price decline reflects earnings disappointment amid a broader market sell-off in the tech and software sectors. Sector pressures were driven by investor concerns regarding industry-wide AI spending.