Summary of Toast's Conference Call Company Overview - **Company**: Toast - **Industry**: Restaurant technology and payment solutions Key Highlights - **2025 Performance**: - Recurring gross profit is projected to grow by **32%** with a **33% margin** [3][4] - Achieved a significant milestone of crossing **$2 billion** in revenue [4] - Adjusted EBITDA margins expanded by over **600 basis points** [3] - **Market Expansion**: - Focus on penetrating core Total Addressable Market (TAM) and expanding into new TAMs, including enterprise, international, and food and beverage retail [5][7] - Successful launch in Australia and significant deals won [5][6] - **Emerging Businesses**: - Achieved over **$100 million** in Annual Recurring Revenue (ARR) from emerging businesses [5] - Different Average Revenue Per User (ARPU) profiles expected across new segments, with gradual expansion anticipated [10][11] Financial Metrics - **Net Location Adds**: - U.S. SMB net adds expected to remain stable in 2025 and 2026, despite potential tapering as the base grows [12][13] - Core business still has significant growth runway [14] - **SaaS ARR per Location**: - Expected to remain in the mid-single digits, with core ARPU growing faster than total ARPU [19][20] - **Gross Payment Volume (GPV)**: - Trends remain stable, with gradual impacts from new segments [21] - **Net Payments Take Rate**: - Increased year-over-year due to cost optimization, targeted pricing, and innovation in digital products [22][24] 2026 Outlook - **Growth Projections**: - Recurring gross profit growth expected to exceed **20%** with margins flat to slightly up [26][27] - Investments focused on both core and new TAMs, with a disciplined capital approach [30][32] - **Sales and Rep Capacity**: - Increased investment in sales rep capacity to drive growth in both core and emerging businesses [33][36] Product Innovations - **Toast IQ**: - New AI-driven product designed to assist restaurant operators with insights and performance management [41][42] - **Partnerships**: - Strategic partnerships with American Express and Uber aimed at enhancing customer experience and integration [44][46] Competitive Landscape - **Market Share Goals**: - Aim to double market share in the core business, with strong execution and win rates observed [15][17] - **Enterprise Payments Attach**: - Most enterprise customers are adopting payments as part of the overall platform, with ongoing opportunities for growth [47][48] Miscellaneous - **Visa/Mastercard Settlement**: - Potential long-term impact on interchange rates, but not expected to be material for Toast [51][52] This summary encapsulates the key points discussed during the conference call, highlighting Toast's performance, strategic initiatives, and outlook for the future.

Group 1: Market Overview - The AI sector is experiencing renewed interest following strong earnings from NVIDIA and Google's Gemini 3, which has eased investor concerns [1] - Despite two positive trading days, the market remains volatile, with large trading ranges indicating a lack of confidence [1][2] Group 2: Performance of Major Companies - The Magnificent 7, including Amazon (AMZN) and Meta (META), are facing challenges as 2025 approaches, with gains increasingly concentrated among AI-focused companies [2] - Bank stocks like JPMorgan Chase, Goldman Sachs, and Bank of America have shown significant gains in 2025, but underlying issues exist within the sector [3] Group 3: Fintech Sector Challenges - Fintech companies are struggling to keep pace with traditional banks, with many experiencing stock declines in the latter half of the year [4] - PayPal Holdings Inc. has seen a dramatic decline in stock value, dropping from $308 to current levels, despite maintaining a $56 billion market cap and over $32 billion in annual sales [5][7] - Toast Inc. has lost momentum after reaching a high of $45, now trading at 85 times forward earnings, raising valuation concerns [9][11] Group 4: Cryptocurrency and Related Companies - Coinbase Global Inc. is facing challenges as it closely tracks Bitcoin's price, with a more than 25% decline in the last month amid falling crypto prices [12][14] - Upstart Holdings Inc. has struggled despite its AI-driven credit assessment platform, with shares down nearly 90% since the Fed's rate hikes, and currently trading at over 170 times earnings [15][17] Group 5: E-commerce and BNPL Services - Affirm Holdings has seen its stock triple since the end of 2023, driven by the popularity of its Buy Now, Pay Later services, but recent earnings reports have shown significant misses [18][19]

Group 1 - The Annual General Meeting (AGM) of Pro Medicus Limited is being held in Hawthorn, Melbourne, with both physical and online attendance options available [2][3][4] - The meeting is chaired by Peter Kempen, who acknowledges the traditional owners of the land, the Wurundjeri people of the Kulin Nation [2] - Several directors are present at the meeting, including Non-Executive Directors and the CEO, indicating a strong leadership presence [5]

Core Insights - Toast, Inc. (TOST) is highlighted as a top investment idea, particularly due to its detachment from the AI trade, which is considered a valuable aspect to monitor [1]. Group 1: Investment Strategy - The investment approach focuses on acquiring undervalued companies at pivotal moments when their business narratives are shifting towards increased profitability over the next year [2]. - The portfolio is concentrated, typically consisting of 15 to 20 stocks, with an average holding period of 18 months [2]. Group 2: Expertise and Community - The leader of the investment group, Michael Wiggins De Oliveira, has over 10 years of experience in analyzing companies, particularly in the tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2]. - The investment group, Deep Value Returns, offers insights through its concentrated portfolio, timely stock updates, weekly webinars, and a supportive community for both new and experienced investors [2].

Core Insights - The article discusses the investment potential of Toast, Inc (TOST), described as an "operating system for restaurants" and a fast-growing company [1] Group 1: Company Overview - Toast, Inc is characterized as a fast-growing company with substantial revenue and earnings growth potential that is not fully appreciated in current market prices [1] - The investment strategy focuses on identifying companies that can become multi-baggers over a 5-10 year horizon, with a preference for less cyclical and higher growth sectors [1] Group 2: Investment Philosophy - The investment approach emphasizes a long-term holding period, ideally "forever," while maintaining a cautious stance on GAAP unprofitable stocks [1] - The geographical bias of the investment strategy is towards the United States, indicating a focus on domestic market opportunities [1] Group 3: Research and Accountability - Writing is utilized as a tool to crystallize thoughts and maintain rigor in the research process, which also aids in accountability [1] - The article highlights the importance of documenting investment insights, recommending this practice to all active investors [1]

Core Insights - Toast is exploring a checkout-free payment concept for diners, potentially enhancing the guest experience by allowing customers to leave without traditional payment processes [2][3] - The company reported a significant increase in net income and revenue, with a net income of $105 million for Q3, nearly double from the previous year, and a revenue increase of 25% to $1.63 billion [5][6] - Toast's annualized recurring run rate (ARR) surpassed $2 billion for the first time, reflecting a 30% increase from the previous year [6] Company Developments - Toast added 7,500 new locations to its client base, bringing the total to approximately 156,000, and secured partnerships with TGI Friday's and Nordstrom [6] - The company aims to double its market share and is targeting $10 billion in ARR over the next decade, having recently achieved a doubling of its ARR from $1 billion to $2 billion in just two years [7] Industry Context - The checkout-free payment experience has been a long-sought goal for many merchants, with companies like Amazon and Cantaloupe leading the way in frictionless payment systems [4]

RT Jeff Kauflin (@JeffKauflin)Toast’s stock jumps 10% after its earnings report, but investor concerns continue to weigh it down: https://t.co/sXEIctZt7z ...

Core Insights - Toast's shares increased by 10.6% following the release of its Q3 2025 results, which showed mixed outcomes compared to Wall Street expectations [1][7] Financial Performance - Toast reported a 25% year-over-year revenue increase, reaching $1.63 billion, surpassing the analyst consensus of $1.58 billion [2] - Adjusted earnings per diluted share more than doubled from $0.07 to $0.16, but fell short of the expected $0.24 per share [2][7] Growth Metrics - The company's annual recurring revenues (ARR) grew by 30% year-over-year, indicating strong demand for its subscription-based services [4] - Toast is currently installed in 156,000 restaurant locations, with a potential market of nearly 900,000 client sites in the American market [5] Long-term Outlook - Management emphasizes significant long-term growth potential in the restaurant industry, supported by an expanding product portfolio aimed at increasing revenue per customer [5][6] - Despite a high valuation of 90 times adjusted earnings, Toast remains a favored growth stock due to the demand for improved operational tools in the restaurant sector [6]

Core Insights - The article discusses the recent performance of Toast (NYSE: TOST), highlighting a significant drop in stock price due to pricing reductions [1] Company Overview - Toast is a company that has recently faced challenges, including a considerable decline in stock value since August [1] - The company is involved in the restaurant technology sector, providing solutions that may be impacted by pricing strategies [1] Investment Strategy - The article mentions a family office fund led by Amrita, which focuses on investing in sustainable, growth-driven companies [1] - The fund aims to maximize shareholder equity by aligning with growth-oriented goals [1] Market Context - The newsletter authored by Amrita emphasizes the importance of financial literacy and aims to simplify complex macroeconomic concepts for investors [1] - The focus on democratizing financial knowledge is a key aspect of the investment strategy discussed [1]

Core Viewpoint - Embraer is exploring new products to stimulate long-term growth, but any new initiatives must be evaluated against the company's financial situation as stated by CEO Francisco Gomes Neto [1] Group 1 - The company is focused on studying new products that could enhance its growth trajectory [1] - Financial considerations are crucial in the decision-making process for new product development [1]