The Compound on $TOST (Nov 3, 2026)
The speaker remains long Toast and sees it as a great long-run opportunity. He cites a great report: GAAP EPS almost doubled year over year, ARR is about $10 billion, free cash flow keeps increasing, and earlier problems are fixed. Although shares fell $1.5 and after-hours moves are not meaningful, he sees market cap as very low versus the business; vertical SaaS is out of favor, but Toast dominates and is used in 189,000 locations.
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Toast has published their report. This Actually a great report, so stock 1.5 The dollar has fallen, but since we are on the show, I've talked about it many times, so it's official.
For those who don't know, toast is fast. Payments for the hospitality industry and The most popular vertical software Becoming an important platform, just Not a restaurant, take-out business, retail The store and they just left the gas station. has also launched a vertical for.
This is not just a US business, it is International.
There have been some fluctuations in after hours. Look, I'm after these market hours. I don't get too carried away by the reaction. Let's show earnings per share (EPS). Look, They reported their GAAP earnings per share.
It is almost doubling in a year. and The ARR numbers are really Impressive. I think their quarterly run rate is two and a half. billion dollars, which means an annual recurring Revenue is about $10 billion.
Show the next one, free cash flow. It is not very balanced, meaning it is constantly increasing. No. This doesn't seem like a hyper scalar, However, they had some problems two quarters ago.
It's fixed when the share price is in the 20s. It went down.
This is the ARR number that I was talking. This is the annual... If this company makes $10 billion in the long run can reach the dollar target and this pace can maintain, but I think the business Their market cap is very low compared to their size.
I know people are more into SaaS now. Not excited, and with vertical sash too They're not that interested, which is the point of the toast. Foundation. But in this case they are very much alone. It is dominating.
Wherever you go, you'll see toast. You will get it, and their revenue will increase. They told the market tonight that Currently in 189,000 locations worldwide Toast is being used, at least for one task.
For, perhaps for payment. And the other side of the business is, once they If you are found as a payment customer, They are essential for your business. Other horizontal services are also sold. Can do.
Anyway, my message is something No, because there is not much change in the share price. . But I am still in a long position and I think I think this is a great opportunity in the long run.