Does Toast, Inc. have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores Toast, Inc. (TOST) 33.3 out of 100 — below the Shallow-moat bar, so no moat. The four filters behind that score (each 0–100): pricing power 8, returns on capital 7, balance-sheet safety 100, capital discipline 44.

How has TOST's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 33.3 out of 100 (no moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

Toast, Inc.

TOST · Technology · FY2025 filings · No moat ·

Doesn't clear the bar

No moat

The four filters

Pricing power8

Median gross margin 18.7% over 7y, variable.

Returns on capital7

Median ROIC -38.5%, above the 9% hurdle in 20% of years.

Balance-sheet safety100

Net cash position — no leverage risk.

Capital discipline44

Owner earnings trend unclear, share count n/a.

Margin of safety

Above valueOn sale

No price data

Owner earnings (normalized): —
Est. intrinsic value / share: —
Recent price: $30.08
Discount to value: No price data

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

8 years of fundamentals

The business, in plain English

Toast, Inc. booked $6.2B of revenue in FY2025 in the Technology sector and kept 25.9% of it as gross profit — a moderate-margin business by that measure. After every other cost, 5.6% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $665.0M (FY2019) to $6.2B (FY2025) — about 44.9% a year compounded over 6 years.

It earned 37.4% on invested capital in FY2025, with a median of −38.5% across 5 filed years. The Returns on Capital filter above scores it 7/100.

The balance sheet carried $0 of total debt in FY2021. Balance-Sheet Safety scores it 100/100.

Put together: Balance-Sheet Safety is the strongest of the four filters (100/100) and Returns on Capital the weakest (7/100), which is how TOST lands at 33/100 — a None moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$6.2B FY2025

Gross marginRevenue kept after cost of goods25.9% FY2025

Return on invested capitalOperating profit on the capital employed37.4% FY2025

Owner earningsCash an owner could take out$353.0M FY2025

Gaps in a line mean that item isn’t in TOST’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale33.3 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — TOST has read No moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Technology context

#398 of 532 scored Technology companies, ranked by Moat Score.

Nearest peers by Moat Score

#396DLHC DLH Holdings Corp.33.6 out of 100, No moatNo moat
#397HCTI HEALTHCARE TRIANGLE, INC.33.4 out of 100, No moatNo moat
#399ALMU AELUMA, INC.33.1 out of 100, No moatNo moat
#400SEGG SPORTS ENTERTAINMENT GAMING GLOBAL CORPORATION33.0 out of 100, No moatNo moat

Compare TOST with its nearest peers →All Technology companies on the Index →

Common questions about TOST

Does Toast, Inc. have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores Toast, Inc. (TOST) 33.3 out of 100 — below the Shallow-moat bar, so no moat. The four filters behind that score (each 0–100): pricing power 8, returns on capital 7, balance-sheet safety 100, capital discipline 44.
How has TOST's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 33.3 out of 100 (no moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell TOST. See the disclaimer.