Toast (NYSE: TOST) shares rebounded after solid Q4 results and upbeat guidance, adding 8,000 net restaurants and 30,000 for the year. Q4 revenue grew 22% to $1.63 billion, ARR jumped 26% to $2 billion, and EPS soared from $0.05 to $0.16. Adjusted EBITDA rose 47% to $163 million.

Toast forecasted 2026 subscription services and fintech gross profit to reach $2.27 billion to $2.30 billion with 20%-22% growth. For Q1, it projected gross profit of $505 million to $515 million, equating to 22%-24% growth. Adjusted EBITDA expected in a $160 million to $170 million range.

Despite a recent SaaS sell-off, Toast’s focus on small restaurants makes AI disruption unlikely. It embraces AI tools and sees AI agents as a future growth driver. Valuation based on its projected 2026 ARR of $2.3 billion shows the stock trading at an enterprise value-to-ARR multiple of around 6 times, making it a buy.

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Read more at Yahoo Finance: Toast Shares Rebound on Solid Growth Outlook. Can the Stock’s Momentum Continue?