Is Toast Inc. (NYSE:TOST) a buy in 2026?
Yes. Toast Inc. is one of Alexandria's highest-conviction calls right now.
Toast is printing nearly $600M in free cash flow, trading at 13.7x forward earnings, and the market is treating it like it's broken.
Where TOST is headed
Toast Inc. (NYSE:TOST) sits at $23.22 today, roughly 53% below its 52-week high, generating $588M in annual free cash flow with essentially zero debt. Read that again. A restaurant technology platform with 22% revenue growth, 22.5% ROE, and nearly $600M in free cash flow is trading at a PEG ratio of 0.23. The trailing P/E of 34.7 looks optically rich until you see the forward P/E collapse to 13.7, which tells you earnings are about to step-function higher. By late 2027, Toast should be running north of $5.5B in annual revenue with operating margins pushing toward 10-12% as the SaaS and fintech layers scale on a largely fixed cost base. The company has moved past the land-grab phase (subsidizing hardware to win locations) and entered the monetization phase, where every new module sold to an existing restaurant drops almost entirely to the bottom line.
Read the full Compass Direction on TOST
The complete destination call, the overlooked angle, milestones, and bull, base, and bear price scenarios.
See the full TOST analysisGet calls like this, free
Join the Alexandria e-letter for forward-looking verdicts, earnings intelligence, and the contrarian reads the crowd misses. Twice a week, no noise.
Free forever. Unsubscribe anytime. We never share your email.
Frequently asked questions
Is Toast Inc. (NYSE:TOST) a buy in 2026?
Yes. Toast Inc. is one of Alexandria's highest-conviction calls right now. Toast is printing nearly $600M in free cash flow, trading at 13.7x forward earnings, and the market is treating it like it's broken.
What is TOST's Compass Score?
Toast Inc. scores 70/100 on Alexandria's Compass, placing it in the "Favorable" tier. Scores blend eight factors and update weekly.
What is the price target for TOST?
Alexandria's full Compass Direction includes bull, base, and bear price scenarios with the valuation math behind each. Read the full breakdown on the TOST page.
Compass verdicts are AI-generated, forward-looking editorial research from publicly available data, not investment advice or a recommendation regarding any security. Scores and verdicts update as the data changes.