Toast(TOST) - 2025 Q4 - Annual Report

Employee Engagement and Workforce - As of December 31, 2025, the company had approximately 6,500 employees worldwide[82] - The company is committed to maintaining high employee engagement and satisfaction, as assessed by annual internal culture and independent surveys[83] - The company offers competitive compensation and benefits, including healthcare, mental health support, and retirement savings plans[84] - The company is focused on creating a diverse and inclusive workforce, believing it to be a strategic enabler for business success[85] Intellectual Property and Legal Compliance - The company has 67 U.S. patent applications allowed/granted and 10 pending, with issued patents estimated to expire between 2034 and 2044[94] - The company has developed a strategy to protect its intellectual property, including a combination of patents, trade secrets, and trademarks[93] - The company is licensed as a money transmitter in most states for payroll processing services, subject to various federal and state regulations[101] - The company is subject to numerous federal and state privacy and information security laws, which impact its operations and consumer data handling[114] - The company is subject to the EU GDPR and other privacy laws as it expands internationally, which may impact its operations[118] Financial Position and Market Risks - As of December 31, 2025, the company had cash and cash equivalents of $1,353 million and marketable securities of $638 million[432] - A hypothetical 100 basis point increase or decrease in interest rates would not have materially affected the company's financial position[433] - The primary objective of the company's investment activities is to preserve capital and meet liquidity requirements without significantly increasing risk[432] - The company has maintained provisions for potential credit losses and evaluates customer solvency on an ongoing basis[435] - The effects of inflation on the company's results of operations and financial condition have been considered immaterial[436] - The company does not expect changes in prevailing interest rates to have a material impact on its results of operations[433] - The company is exposed to market risks including interest rate and foreign currency exchange risks in its operations across North America, Europe, and Asia[431] Social Responsibility and Community Engagement - The company announced a $5 million, five-year commitment to address global hunger and food insecurity, making grants to hunger-relief organizations[90] - The company has reserved a total of 5.5 million Class A common shares for charitable initiatives through its social impact arm, Toast.org[89] Customer Base and Revenue - The company has a diverse customer base, with no individual customer accounting for more than 10% of total revenue during the fiscal years ended December 31, 2025, 2024, and 2023[435] - Foreign currency transaction gains and losses have not been material to the company's results of operations, and no foreign currency hedging transactions have been engaged[434]