Grade History
| Quarter | Disclosure Quality | Financial Quality |
|---|---|---|
| Q1'25 → | B+ | A |
| Q2'25 → | B+ | B+ |
| Q3'25 → | B+ | B |
| Q4'25 → | B- | B |
| Q1'26 → | B+ | B |
Promise Ledger · All Quarters
| Marked | Promise | Status | |
|---|---|---|---|
| Q1'26 | ✅ | AI efficiency gains freeing up capital to invest in growth 60% engineering velocity gains and 40% support resolution enabling reinvestment | delivered |
| Q1'26 | ⏳ | Toast IQ evolution from assistant to automating workflows Still working on this, launched marketing agent but broader workflow automation still in development | pending |
| Q1'26 | ✅ | Expand account management team Mentioned investing more in account management enabled by AI efficiencies in support | delivered |
| Q1'26 | ✅ | Continue to scale location count and grow ARPU internationally International business grew healthy clip in 2025 on both locations and ARPU | delivered |
| Q1'26 | ✅ | Toast Go 3 handheld launch internationally Launched internationally as promised, differentiating platform | delivered |
| Q1'26 | ✅ | Drive-thru product launch planned for later this year (2025) Actually launched Toast for Drive-Thru in Q1 2026, ahead of timeline | exceeded |
| Q4'25 | ✅ | Margins flat to slightly up year-over-year in 2026 (Q3) Reaffirmed 2026 margin expectations despite new memory chip headwind | delivered |
| Q4'25 | ❌ | Usage-based monetization for Toast IQ similar to GPT (Q3) Walked back to 'it's early' on monetization-no usage-based pricing implemented | missed |
| Q4'25 | ✅ | Toast Capital program remains healthy with defaults in line with expectations (Q3) Confirmed defaults remain within risk guardrails, contributed $51M gross profit | delivered |
| Q4'25 | ✅ | Continue to grow net adds in 2025 vs 2024 (Q3) Delivered record 30,000 net adds, up every quarter vs prior year | exceeded |
| Q4'25 | ✅ | On pace to reach $100M ARR in new TAMs (Q3) Confirmed $100M ARR milestone achieved across enterprise/international/retail | delivered |
| Q4'25 | ⏳ | International SaaS ARPU up 20% year-over-year (Q3) No Q4 international ARPU growth disclosed-likely missed or decelerated significantly | pending |
| Q3'25 | ✅ | Continue to gain market share in core SMB business Management reported share gains in nearly every SMB market | delivered |
| Q3'25 | ✅ | Stock-based comp to be in low double digits as % of recurring gross profit 14% in Q3, down from 20% year ago, trending toward target | delivered |
| Q3'25 | ✅ | Toast Capital contribution to remain in 10 basis point range Hit 11 bps in Q3, above the range | exceeded |
| Q3'25 | ✅ | International SaaS ARPU growth Disclosed 20% YoY growth for first time | delivered |
| Q3'25 | ⏳ | More net adds in 2025 versus 2024 Currently tracking well with record adds in H1, but Q3 sequential decline noted | pending |
| Q3'25 | ⏳ | New TAMs on track to surpass $100 million in ARR collectively by end of year Still on track per Q3 commentary, will be measured in Q4 results | pending |
| Q2'25 | ✅ | Stock-based comp in low double digits % of recurring GP At 14% in Q2, down from 20% year ago | delivered |
| Q2'25 | ✅ | Medium-term margin targets Hit 30-35% target ahead of plan with 35% in Q2 | exceeded |
| Q2'25 | ⏳ | Sous Chef GA 'later this year' Timeline became vaguer - now 'at some point later this year' | pending |
| Q2'25 | ⏳ | More location net adds in 2025 vs 2024 On track based on Q2 record, reiterated guidance | pending |
| Q2'25 | ✅ | Cross 10,000 locations in new segments in 2025 Hit this milestone in Q2, ahead of schedule | delivered |
| Q2'25 | ✅ | Record net adds in Q2 Delivered 8,500 vs 6,000+ in Q1 | exceeded |
| Q1'25 | ⏳ | Free cash flow to broadly mirror adjusted EBITDA in 2025 Maintained this guidance from Q4 2024 | pending |
| Q1'25 | ✅ | Toast Capital bad debt to grow off lower base as program scales Acknowledged defaults will rise but remain in expected range | delivered |
| Q1'25 | ✅ | Retail vertical dedicated sales team scaling Confirmed they built dedicated retail sales team as planned | delivered |
| Q1'25 | ✅ | International SaaS ARPU growth through platform expansion Guest attach rates doubled for recent international locations | delivered |
| Q1'25 | ✅ | Medium-term margin goals of 30-35% adjusted EBITDA Hit 32% in Q1, ahead of their medium-term target timeline | exceeded |
| Q1'25 | ⏳ | Surpass 10,000 locations across enterprise, international, and retail in 2025 Reiterated this target from Q4 2024 earnings call | pending |
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