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Finance · Profile from Finance Research Companion

Toast

The Boston company that built a cloud point-of-sale system for restaurants and turned it into a payments business. Founded in 2011 by three engineers from Endeca, Toast sells restaurant-specific hardware, software for ordering, kitchens, payroll and marketing, and embedded card processing, and makes most of its gross profit from the payments that run through the terminals. It survived a near-death moment in April 2020, when US restaurant sales collapsed and it cut half its staff; went public in September 2021 at $40 a share and a ~$20bn valuation; withdrew a $0.99 online-order fee within days in 2023 after a restaurant backlash, and its shares fell sharply; and became GAAP profitable in 2024. By June 2026 it ran ~180,000 locations with ~$2.4bn of annualized recurring run-rate, and had moved into enterprise chains (Applebee's), retail and international markets.

At a glance

Founded
2011, Cambridge, Massachusetts (company; some sources say 2012); initially a mobile payments and loyalty app, pivoted to restaurant POS by 2013 (S-1, verify)
Founders
Steve Fredette, Aman Narang and Jonathan Grimm, former engineers at Endeca, the enterprise search company acquired by Oracle (S-1)
Headquarters
Boston, Massachusetts; large operations in Dublin, Ireland (engineering), and Omaha, Nebraska (reported)
Ownership / structure
Public company (NYSE: TOST) since September 22, 2021. Dual-class shares at IPO (Class B ten votes, verify sunset). Joined the S&P MidCap 400 on July 1, 2026, classified in the Financials sector (S&P Dow Jones Indices, reported)
Leadership (2026)
Aman Narang, co-founder and CEO (since January 1, 2024, succeeding Chris Comparato, CEO 2015–23); Mark Hawkins, board chair; Elena Gomez, CFO (since 2022, verify); Steve Fredette, co-founder and president (verify current title)
Products
Android-based POS terminals, handhelds (Toast Go), kitchen display systems, kiosks, drive-thru; software for online ordering, delivery, loyalty, marketing, inventory (xtraCHEF), scheduling (Sling), payroll and team management; Toast Capital (merchant financing); Toast Retail; enterprise suite; Toast IQ AI assistant
Scale
~164,000 locations at December 2025 (+22%), ~180,000 at June 2026; GPV ~$195.1bn in 2025 (+23%) (company)
Revenue and profit
2025: revenue ~$6.1bn (verify exact), GAAP net income ~$342m (2024: ~$19m, the first profitable year), adjusted EBITDA ~$633m; ARR just over $2.0bn (company, February 12, 2026). Q2 2026: ARR ~$2.4bn (+25%); recurring gross profit ~$595m (+28%); 2026 recurring gross-profit guidance raised to ~$2.325–2.355bn (company, August 4, 2026)
Capital / regulatory status
Not a bank. Registered with the card networks as a payment facilitator through sponsor acquiring banks and processors (verify current partners); Toast Capital loans originated through a partner bank (WebBank, reported, verify); payroll and tax services subject to state rules
Signature moves (incl. failures)
Founding and the pivot to restaurant POS (2011–13); bundling payments with software (2015–19); Toast Capital and payroll (2018–19); the COVID collapse and 50% staff cut (2020); IPO (2021); the $0.99 fee reversal (2023); new CEO, layoffs and first profitable year (2024); enterprise, retail and international expansion (2024–26)

8 strategic moves analysed

Each one gets a full strategy file in the companion: context, the decision, the financing, what happened, and the lesson.

  1. 2012

    Founding and the Pivot to Restaurant POS

    Founding / pivot

  2. 2015

    Bundling Payments into the POS

    Pricing change / launch (integrated payments as standard)

  3. 2019

    Toast Capital Payroll and the Platform Push

    Launch / acquisition

  4. 2020

    COVID Collapse and the 50 Percent Cut

    Restructuring / pivot

  5. 2021

    IPO

    IPO

  6. 2023

    The 99 Cent Fee Reversal

    Pricing change (reversed)

  7. 2024

    New CEO Layoffs and First Profitable Year

    Restructuring

  8. 2025

    Enterprise Retail and International Expansion

    Expansion (new segments and markets)