Toast (TOST) Stock Forecast & Price Target

Toast demonstrates a positive financial outlook, as reflected by its adjusted EBITDA estimate of $565-$585 million, a notable increase from the previous range of $540-$560 million. The company is also experiencing significant growth in its market share, having added a record 8,500 new restaurant locations in the second quarter alone. Furthermore, for fiscal year 2025, Toast anticipates gross profit from subscription services and FinTech solutions to be between $1.815 billion and $1.835 billion, marking an increase from the earlier projection of $1.775 billion to $1.795 billion.

Toast's stock outlook is negatively influenced by the potential stalling of recurring revenue growth, particularly in the face of a prolonged economic downturn that could reduce consumer spending and slow new restaurant openings. The company is currently unprofitable due to significant investments in growth, and ongoing losses may heighten execution risks if its business model fails to scale effectively. Additionally, persistent supply chain issues and chip shortages could lead to hardware bottlenecks that delay customer onboarding and hinder overall growth.