Is the business good?
How good a business is TOST?
Toast, Inc. earns 32% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
32%
Return on invested capital · cost of capital 9.0% · 23 points above what the capital costs: growth creates value
- Operating margin
- 5.6%
Operating margin · Software - Infrastructure median 6.1% · 12 months to Q1 2026
- Cash conversion
- 1.59×
Cash conversion · 2.58× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −0.17%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | −27% |
| FY2021 | −13% |
| FY2022 | −14% |
| FY2023 | −7.4% |
| FY2024 | 0.32% |
| FY2025 | 4.8% |
Details›
- Gross margin12 months to Q1 2026
- 26%
- Operating margin12 months to Q1 2026
- 5.6%
- Net margin12 months to Q1 2026
- 6.4%
- Free cash flow margin
- 10%
- R&D as % of revenue
- 6.0%
- Revenue, trailing twelve months
- $6.45B
- Free cash flow, trailing twelve months
- $654M
- Net income, trailing twelve months
- $412M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 32%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Infrastructure
Ranks #32 of 78 by Smart Score