There weren’t any S&P 500 earnings reactions yesterday…
But one recent move continues to stand out.
Toast $TOST is quietly becoming one of the most compelling growth stories in the entire software space.
Originally built to serve restaurants, the company is scaling far beyond its roots.
This $25B vertical SaaS giant is modernizing one of the economy's most fragmented and underserved industries.
They're transforming how restaurants manage everything from point-of-sale and payroll to online ordering, delivery, and inventory.
It's building the operating system for the restaurant industry.
The total addressable market is enormous. And they're just getting started.
After years of unprofitability, the company has flipped the script.
They have turned EBITDA positive, and top-line growth is accelerating.
The market is taking notice, rewarding the stock for 5 of its last 6 earnings reports.
On a relative basis, it's becoming a clear leader in the software space.
This is no longer a turnaround story.
It’s a breakout story.
TOST is breaking out relative to its peers 📈
Toast has spent more than two years basing versus the software ETF $IGV.
Every prior attempt at breaking out failed.
But this time is different... The stock is consolidating gains constructively near the highs and looks ready to make a decisive resolution any day.
That’s leadership behavior.
Toast just turned the corner on profitability 💰
Investors were asked to be patient for years, trusting that scale would eventually bring leverage.
That belief is now being rewarded.
The company just crossed into positive EBITDA territory, proving it can grow and operate efficiently at scale.
This isn’t just a milestone. It’s validation of a long-term fundamental story.
Here's the setup in TOST 👇
Toast has been rewarded for 5 of its last 6 earnings reports.
Its last report? Another blowout, which sparked another double-digit positive reaction.
Recurring gross profit grew by 37% year-over-year
The company inked deals with Applebee's and Topgolf, proving they execute in bigger markets.
In addition to the excellent report, the management team raised its forward guidance.
We love how Toast's strong fundamentals have resulted in one of the cleanest charts in the software space.
The stock has carved out a multi-year accumulation pattern below the 61.8% retracement of the prior drawdown.
A breakout above this key level of interest would shift the path of least resistance toward new all-time highs.
It’s a high-probability setup backed by real fundamental progress.
We want to buy TOST on strength above 45, with a target of 66 over the coming 3-6 months.
Thank you for reading.
- The Beat Report Team
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