Toast Inc. (NYSE: TOST) stock climbed Monday as investors got their chips on the table ahead of the restaurant technology company's third-quarter earnings report, scheduled for Tuesday after the market close.

What Wall Street Is Looking For

Analysts expect Toast to report earnings of 25 cents per share, up from 16 cents a year earlier. Revenue is projected to climb 21% to $1.97 billion from $1.63 billion.

Toast beat Wall Street expectations in the second quarter. Earnings reached 26 cents per share, topping the 20-cent estimate. Revenue rose 23% to $1.91 billion, exceeding the $1.87 billion forecast.

Investors will watch Toast's annualized recurring run rate (ARR), customer growth and profit margins.

Toast added about 9,500 net new locations in the second quarter. ARR increased 25% to $2.4 billion as of June 30.

In its previous outlook, Toast projected third-quarter subscription and financial technology solutions gross profit of $615 million to $625 million, representing 22% to 24% year-over-year growth. The company also forecast adjusted EBITDA of $210 million to $220 million.

For 2026, Toast raised its gross profit growth forecast to 23% to 25% from 21% to 23%. It also increased its adjusted EBITDA outlook to $805 million to $825 million from $790 million to $810 million.

The FTC Lawsuit Is the Elephant in the Room

The earnings report comes days after the Federal Trade Commission and several states sued Toast on Oct. 29.

The lawsuit accuses the company of imposing hidden fees, charging for unauthorized subscriptions and making misleading customer support claims.

Regulators alleged that Toast charged restaurants for unwanted services, imposed undisclosed early termination fees of $150 per remaining contract month and made subscriptions difficult to cancel.

The lawsuit also challenged Toast's advertised 24/7 customer support and alleged that certain loan terms discouraged restaurants from switching providers.

Toast denied the allegations and said it would vigorously defend itself against the claims.

Wall Street Still Likes the Stock

Toast carries a consensus Buy rating, with an average price forecast of $38.60.

Truist Securities maintained its Buy rating but lowered its price forecast to $38 on Oct. 19. Bank of America Securities maintained a Buy rating with a $40 forecast on Oct. 15. BNP Paribas downgraded Toast to Neutral on Sept. 2 and reduced its price forecast to $35.

The Chart Looks Constructive

Toast shares remain above key moving averages, signaling a positive trend.

The stock trades 8.3% above its 20-day simple moving average (SMA) of $31.73 and 17.1% above its 200-day SMA of $29.34.

The 50-day SMA of $32.01 also remains above the 200-day average, following a golden cross in August.

Meanwhile, the moving average convergence divergence (MACD) indicator remains above its signal line. Its positive histogram suggests strengthening buying momentum.

Traders are watching $37 as the next resistance level, while $28.50 represents a key support area.

Where the Stock Stands

Toast shares rose 7.83% to $34.16 at the time of publication Monday, according to market data.