Toast Inc. (TOST) reported a solid quarter by most measures, but Wall Street had other ideas. Shares tumbled more than 8% in after-hours trading Thursday despite the restaurant technology platform beating analyst expectations on both the top and bottom lines.

The Numbers Tell a Good Story

Toast's fourth quarter results came in ahead of forecasts. Revenue hit $1.63 billion versus estimates of $1.62 billion, while earnings per share of 16 cents topped the 13-cent consensus.

The operational metrics looked healthy too. Annualized recurring run-rate grew 26% to surpass $2 billion as of December 31, 2025. Gross Payment Volume climbed 22% year-over-year to $51.4 billion, showing restaurants are increasingly running transactions through Toast's platform.

The company expanded its footprint considerably, adding 30,000 locations throughout 2025 to reach approximately 164,000 total locations—a 22% jump from the prior year.

"We have momentum across the business — we're scaling our core restaurant business, accelerating growth in new markets, increasing platform adoption, and investing with focus," said Aman Narang, CEO of Toast.

In a show of confidence, Toast's board authorized a $500 million increase to the company's existing share repurchase program.

Looking Ahead

For the first quarter, Toast expects gross profit from subscription services and financial technology solutions between $505 million and $515 million, representing growth of 22% to 24%. The company projects adjusted EBITDA in the range of $160 million to $170 million.

Toast executives discussed the results during a conference call that began at 5 p.m. ET.

Market Reaction

Toast shares traded down 8.11% in after-hours action to $24.02 at the time of publication Thursday.