Toast: The Problem With How It Is Earning Its Payment Revenue

Dec. 12, 2022 4:42 PM ETToast, Inc. (TOST)PAR, LSPD, IDT9 Comments
Jun Hao profile picture
Jun Hao


  • Toast, Inc.’s core revenue is FinTech solutions, and these are primarily from its payment processing fees charged to merchants.
  • In return for providing free hardware to merchants, Toast is charging higher payment processing fees in return, which can be more costly over time.
  • Its FinTech business model is questionable, and this raises doubt over the management’s wisdom.

Close up of a male"s hand paying bill with credit card contactless payment on smartphone in a cafe, scanning on a card machine. Electronic payment. Banking and technology


Investment Thesis

Toast, Inc. (NYSE:TOST) is a cloud-based point-of-sales (“POS”) software that is deployed to over 40,000 units, consisting of primarily SMBs (small and medium-sized business), as well as enterprise restaurants. Toast has been generating consistently strong growth over the past couple of

Toast Revenue

TOST 10-Q & 10-K

Toast Revenue Breakdown %

TOST 10-Q & 10-K

This article was written by

Jun Hao profile picture
Equity Research. Mostly Tech, Consumer & Sin Stocks. Student in the National University of Singapore (NUS).

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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