Toast, Inc. (TOST) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Technology / Software · as of Aug 10, 2026
Toast, Inc. (TOST)
A forensic read on Toast, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
15.5
Distress distance
Clean
Earnings quality
3
Forensic signals
48.9
P / E (ttm)
16.1%
ROE
$20.5B
Market cap
24.1%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Toast, Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 15.5, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by share-count dilution.
What the filings flag
+5.8%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +19% over the last 3 years to FY2025 (+5.8%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~5.8% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~16%.
+18.3%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +18.3% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by receivables up +10% against revenue +24%. The cash-flow cross-check is more mixed: reported earnings ran behind operating cash by 45% of net operating assets, diverging from the balance-sheet accrual read.
4% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 4% of revenue and 40% of free cash flow in FY2025 — about $0.40 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count, and there it has run at about 5.9% a year and is falling.
Key fundamentals
Latest Revenue$6.15B
Revenue Growth YoY+24.1%
Revenue CAGR (3yr)+31.1%
Net Margin5.6%
Free Cash Flow$608.0M
Return on Equity16.1%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Toast, Inc.'s actual 10-K/10-Q/8-K filings?