Shares of restaurant software platform Toast (NYSE:TOST)
jumped 12.2% in the afternoon session after the company reported strong first quarter 2025 results and provided optimistic EBITDA guidance for next quarter, which blew past analysts' expectations. In addition, its EBITDA outperformed Wall Street's estimates by a wide margin.
Restaurant software platform Toast (NYSE:TOST) fell short of the market’s revenue expectations in Q1 CY2025, but sales rose 24.4% year on year to $1.34 billion. Its non-GAAP profit of $0.24 per share was 30.1% above analysts’ consensus estimates.
Restaurant software platform Toast (NYSE:TOST) missed Wall Street’s revenue expectations in Q1 CY2025, but sales rose 24.4% year on year to $1.34 billion. Its non-GAAP profit of $0.09 per share was 51.6% below analysts’ consensus estimates.
Quality compounders are flywheels.
Said differently, they’re businesses that generate heaps of profits and consistently reinvest them to produce even more profits.
Rinse and repeat.
Companies with more cash than debt can be financially resilient, but that doesn’t mean they’re all strong investments.
Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers.
Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains.
This unpredictability can shake out even the most experienced investors.
A number of stocks fell in the afternoon session after stocks gave back some of the gains from the previous day as the White House clarified the tariffs on imports from China would add up to 145%, while the baseline 10% tariffs remained in place for some countries. This reminded markets that the global trade environment remained volatile, limiting the potential for sustained gains.
As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the vertical software industry, including Upstart (NASDAQ:UPST) and its peers.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how vertical software stocks fared in Q4, starting with Toast (NYSE:TOST).
