Reiterating My Buy Rating On Toast: In A 'SaaSpocalypse' It's A Winner

Impact · against what's priced in

Toast's strong FY2025 results demonstrate a successful pivot to profitability and significant cash flow acceleration. The combination of doubling FCF per share and a new $500 million buyback program provides a concrete catalyst for valuation expansion.

TOST+0.70

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In context

The company demonstrated significant operating leverage with operating margins increasing over 400 bp and FCF per share nearly doubling to $1.00. The addition of $500 million to the share repurchase program signals a shift toward aggressive shareholder returns.

Read from the article alone

• revenue growth▲3%
• earnings
• TOST
• eps
• free cash flow
• margins
• share buybacks

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