Cash generation has improved markedly, with free cash flow margins reaching 7.1% in 2026Q1 and management initiating a $323 million share repurchase program during the same period.
| Cash from Operations | 714M | 661M | 360M | 135M | -156M | 2M | -125M | -126M |
| Operating CF Margin % | - | 10.74% | 7.26% | 3.49% | -5.71% | 0.12% | -15.19% | -18.95% |
| Operating CF Growth % | 230.28% | 83.61% | 166.67% | 186.54% | -7900% | 101.6% | 0.79% | - |
| Net Income | 412M | 342M | 19M | -246M | -275M | -487M | -248M | -209M |
| Depreciation & Amortization | 57M | 67M | 46M | 32M | 24M | 21M | 27M | 7M |
| Stock-Based Compensation | 182M | 242M | 258M | 287M | 238M | 159M | 86M | 34M |
| Deferred Taxes | 0 | 0 | 0 | 0 | -5M | -3M | 0 | -3M |
| Other Non-Cash Items | 254M | 201M | 185M | 121M | -9M | 301M | 38M | 1M |
| Working Capital Changes | -191M | -191M | -148M | -59M | -129M | 11M | -28M | 44M |
| Change in Receivables | -42M | -33M | -72M | -3M | -35M | -23M | -13M | -26M |
| Change in Inventory | -25M | 4M | 0 | -7M | -68M | -23M | -4M | -7M |
| Change in Payables | 19M | 11M | 5M | 1M | -11M | 15M | -6M | 15M |
| Cash from Investing | -269M | -172M | -39M | -86M | -98M | -503M | -36M | -47M |
| Capital Expenditures | -60M | -53M | -54M | -42M | -16M | -12M | -28M | -9M |
| CapEx % of Revenue | 0.93% | 0.86% | 1.09% | 1.09% | 0.59% | 0.7% | 3.4% | 1.35% |
| Acquisitions | 0 | 0 | 0 | -9M | -46M | -26M | 0 | -33M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | -3M | -17M | -6M | -8M | -5M |
| Cash from Financing | -293M | 7M | 18M | 63M | 38M | 759M | 594M | 256M |
| Debt Issued (Net) | 48M | 33M | 36M | 0 | 0 | -245M | 186M | 7M |
| Equity Issued (Net) | -358M | -26M | 43M | 36M | 15M | 984M | 401M | 251M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -413M | -107M | -56M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 17M | 0 | -61M | 27M | 23M | 20M | 7M | -2M |
| Net Change in Cash | 93M | 450M | 338M | 112M | -216M | 257M | 435M | 83M |
| Free Cash Flow | 654M | 608M | 306M | 93M | -189M | -17M | -161M | -141M |
| FCF Margin % | 10.15% | 9.88% | 6.17% | 2.41% | -6.92% | -1% | -19.56% | -21.2% |
| FCF Growth % | 60.29% | 98.69% | 229.03% | 149.21% | -1011.76% | 89.44% | -14.18% | - |
| FCF per Share | 1.09 | 1.00 | 0.52 | 0.17 | -0.37 | -0.03 | -0.35 | -0.31 |
| FCF Conversion (FCF/Net Income) | 1.59x | 1.93x | 18.95x | -0.55x | 0.57x | -0.00x | 0.50x | 0.60x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 13M | 5M | 0 |
| Taxes Paid | 0 | 0 | 3M | 2M | 1M | 0 | 0 | 0 |
Macro-sensitive transaction volume
According to recent financial filings, Toast's operating cash flow consistently exceeds net income, with the OCF/NI ratio reaching 1.05 in 2026Q1, signaling a transition toward higher-quality earnings as the business model moves past the heavy reliance on non-cash stock-based compensation expenses seen in prior periods.
The historical divergence between net income and operating cash flow appears to be narrowing as the company achieves GAAP profitability. This suggests that the underlying business is generating genuine cash from operations rather than relying on accounting adjustments to bridge the gap between growth and profitability.
As reported in quarterly statements, Toast has demonstrated a positive FCF trajectory, with margins reaching 7.1% in 2026Q1, a notable improvement from the negative 3.1% margin observed in 2024Q1, indicating that the company is successfully scaling its revenue base while maintaining disciplined control over its cash expenditures.
The consistent positive FCF generation in recent quarters suggests that the company has reached a critical inflection point where operating leverage is finally outpacing the costs of customer acquisition. Investors should monitor whether this margin expansion can be sustained as the company faces potential saturation in its core mid-market segment.
Based on reported figures, Toast maintains a lean capital expenditure profile, with CapEx/Revenue ratios consistently hovering around 1.0% over the last ten quarters, which highlights the software-centric nature of the business model despite the hardware-heavy initial customer acquisition strategy required for restaurant POS installations.
The low capital intensity suggests that the company does not require significant ongoing investment in physical infrastructure to support its growth, which is a key advantage for a vertical SaaS provider. This allows the majority of operating cash flow to be directed toward strategic initiatives or balance sheet strengthening.
As indicated by the quarterly cash flow data, Toast experiences significant fluctuations in working capital, with a notable $98 million outflow in 2026Q1, suggesting that the timing of payment settlements and inventory management for hardware remains a volatile component of the company's overall cash flow generation.
The recurring negative working capital swings may indicate that the company's cash flow is sensitive to the timing of its fintech settlement cycles and the procurement of hardware units. Analysts should investigate whether these outflows are purely timing-related or if they reflect a structural increase in the cash required to support the Toast Capital lending portfolio.
Based on recent SEC filings, Toast has shifted its capital allocation toward share repurchases, utilizing $323 million in 2026Q1 alone, which signals management's confidence in the company's long-term cash generation capabilities despite the ongoing need to fund organic growth and potential strategic acquisitions in the restaurant technology space.
The decision to prioritize share buybacks over other forms of capital deployment suggests that management views the current valuation as attractive or is seeking to offset the dilutive impact of historical stock-based compensation. Investors should monitor if this pace of repurchases is sustainable without compromising the liquidity needed for future operational investments.
Quick answers to the most common questions about buying TOST stock.
Toast, Inc. (TOST) generated $661.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Toast, Inc. (TOST) generated $608.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Toast, Inc. (TOST) spent $53.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Toast, Inc. (TOST) spent $107.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.