NYSE: TOST

We believe we are in the early stages of capturing our addressable market opportunity and we see a significant opportunity to increase sales to both new and existing customers, address more of the diverse needs of our customers, and expand our platform outside the United States and with different types of customers. See the section titled “Our Growth Strategy” below for additional details.

Our Products and Platform

Toast’s all-in-one technology platform is purpose-built to support the operational needs of restaurants and food and beverage retailers across a range of formats, sizes, and stages of growth. Our proprietary Android-based software powers our single platform of vertically integrated solutions, and combined with our purpose-built hardware and integrated payments solutions, we deliver a unified system that supports daily operations, employee workflows, and guest engagement.

Our platform is designed to serve as a central operating system for our customers’ businesses, with solutions that span point-of-sale, digital ordering and delivery, labor and workforce management, inventory and supply chain tools, marketing and loyalty, financial management, and related services. By offering these solutions on a single, integrated platform, we enable customers to manage operations more efficiently and to adopt additional capabilities as their businesses grow in scale and complexity.

Designed to work together, our solutions deliver increasing value as customers adopt more of the platform. For example, customers that use our digital ordering solutions can connect those orders directly with our marketing and loyalty tools, allowing them to promote offers to returning guests, encourage repeat visits, and

drive more orders through their own digital channels, which can help customers save on third-party commissions and deliver incremental margins.

We continue to enhance the capabilities of our platform and expand its applicability across use cases, while maintaining a focus on reliability, scalability, and security. Our approach emphasizes delivering operational outcomes for customers through integrated workflows, data-driven insights, and ongoing innovation across the platform.

Point-of-Sale (POS) & Restaurant Operations

Toast’s in-store POS and restaurant operations offerings are built to help reduce time to take an order, optimize operations, and seamlessly handle payments. This includes software to run fixed-location POS terminals, handheld POS devices, and self-service kiosks that allow restaurant staff to take orders and guests to pay, all of which run on Toast hardware with proprietary technology. In the kitchen, our Kitchen Display System and kitchen printers allow operators to integrate in-store and online orders, helping keep kitchen staff organized and driving operational efficiencies.

Robust above-store offerings include our multi-location management and menu management tools that allow operators to configure our products to fit the specific needs of individual locations while also providing customers with the ability to view data across their locations for a centralized, clear view of business performance. Operators can analyze data generated by staff and guest interactions with our products to understand menu and operational performance. They can also assess performance against aggregated data from restaurants in their local markets using Toast Benchmarking.

Toast IQ

Toast IQ is a conversational artificial intelligence, or AI, assistant built into our platform that uses real-time and historical data from our customers’ operations to help surface actionable business insights and enable operators to ask questions in natural language and take actions directly within the Toast system. Toast IQ is intended to help operators identify trends, make informed decisions, and streamline routine operational workflows through data-driven intelligence and integrated platform actions.

Marketing

Toast’s marketing products provide simple, integrated solutions to deliver targeted email and SMS campaigns, reach new guests with advertising campaigns across third-party digital channels, build loyalty programs, offer gift cards, and take reservations to drive further engagement with guests.

Features within our marketing products, such as our writing assistant powered by AI, custom templates and one-click email campaigns, are designed to help operators save time on crafting marketing strategies. Additionally, certain of our products enable operators to create tailored marketing based on guest interactions across our product suite, such as visit frequency and spending patterns, to drive guest engagement and help improve retention. Data-driven insights within these products allow operators to easily create and optimize their marketing efforts over time. In addition, certain marketing products enable operators to create and manage advertising campaigns designed to reach new guests across third-party digital channels, helping to extend their visibility beyond existing customers.

Online Ordering & Delivery

We provide software solutions that allow customers to take control of and consolidate digital ordering and delivery across Toast-provided solutions and third-party ordering channels. Toast’s Websites and Branded App products aim to simplify building and managing a restaurant’s digital presence with templates and real-time menu updates integrated with the POS system. Our commission-free, first-party online ordering product and the consumer Local by Toast application are designed to simplify the digital ordering experience for guests, increase order accuracy, and allow restaurants to reduce reliance on third parties for driving online orders. We enable restaurants to offer delivery services in a variety of ways that can be tailored to the different needs and operations of restaurants. With our POS integrations, restaurants can streamline order intake, eliminate the need for third-party tablets, and seamlessly sync menus.

Team Management

Toast’s payroll and team management products offer a centralized hub that streamlines the employee onboarding, management, and payroll process. Integrated POS and payroll creates a single employee record across systems, allowing for hours, tips, and employee data to synchronize seamlessly - helping managers save time and improving the employee experience. Our scheduling products facilitate simple shift scheduling, shift swapping and team communication to keep the whole team in sync.

Vendor Management

Toast’s vendor management offerings are built to help operators make more informed, data-driven decisions by integrating key data and automating processes to provide actionable insights across the back office. We enable operators to better manage costs and spend less time on administrative tasks - allowing them to focus more on their guests and teams.

xtraCHEF by Toast provides a comprehensive set of back-office tools for restaurants, including accounts payable automation, inventory management, ingredient price tracking, and recipe costing. By integrating POS, Toast Payroll, accounting software, and supplier data, we provide operators with valuable insights to help manage fluctuating costs, automate financial processes, and optimize back-office tasks to proactively manage margins.

Retail

Toast's food and beverage retail offering helps restaurants, convenience stores, bottle shops, and grocery stores of all shapes, sizes, and concepts save time, streamline inventory management, and enhance the customer experience. With Toast’s mobile-first SmartScan technology, operators can scan an item’s barcode with their mobile device and pull key information into their POS including an item’s name, brand, a high-quality image, and an AI-generated recommended description. Additionally, Toast’s smart inventory planning capabilities use historical sales data to predict the number of days before a retail item runs out on the shelf, enabling operators to plan ahead.

Food and beverage retailers can also leverage the rest of the Toast platform to manage their employees, finances, and guest touchpoints. For operators of hybrid restaurant and retail establishments, they can use one consolidated POS, reducing operational complexity and training needs, and use unified reporting tools to see a complete picture of their operations.

Financial Technology Solutions

Toast provides a fully-integrated platform that enables our customers to securely accept and process payments, while also providing valuable data-driven insights and driving our guest engagement programs. We maintain competitive and clear pricing, our systems are in compliance with the relevant PCI Security Council standards, and our hardware is EMVCo certified to allow customers to support both contact and contactless payments.

We also offer a number of ways for customers to reduce the upfront cost of our products. With an Easy Pay commercial lease, Toast customers can get up and running quickly while minimizing their upfront costs, such as hardware and onboarding fees, by making lease payments generally through a portion of their daily transactions. We also help tackle rising daily payment processing costs by offering automated, industry compliant credit card surcharging to help eligible customers offset their card processing fees.

Toast Capital offers eligible restaurants access to fast and flexible funding via loans issued by our bank partner that are generally repaid through a portion of their daily transactions. We are uniquely positioned to provide our restaurants with access to capital using proprietary systems to assist with loan origination that incorporate data science models, historical POS data, and payment processing volume. Toast Capital provides applicants with a straightforward process that allows approved borrowers access to funds as soon as the next business day after signing a credit agreement, allowing restaurateurs to focus on running and growing their

businesses. In addition to Toast Capital, we also offer access to a number of other financial technology solutions.

Our Technology

Our proprietary technology underpins our products to provide a streamlined, integrated customer experience. Our platform is designed to be stable and secure, and provides our individual product teams common capabilities, shared services, and reusable components to build new products efficiently.

Our digital technology platform includes:

Software, cloud-based services, and partner ecosystem

•Reliable cloud services. Our highly scalable, services-based, multi-tenant architecture runs on Amazon Web Services.

•Offline POS capabilities. In the event of an internet or network disruption, Toast’s offline POS capabilities provide essential continuity of operations. This capability allows customers to continue to place orders, send orders to Kitchen Display Systems, print tickets and receipts, and take credit card payments. In offline mode, credit card information is securely encrypted and stored on the Toast device until it regains connection.

•Partner APIs. Toast has curated a portfolio of over 200 technology partners that utilize Toast APIs to deliver a broad range of specialized solutions.

Payments

Toast provides fast and secure, integrated payment processing through its POS devices, standalone contactless reader, or Toast Tap reader, and online ordering applications.

•Security and compliance. Toast is a PCI-DSS compliant Level 1 Service Provider. All of our card processing products and services are assessed annually by an independent security organization that has been qualified by the PCI Security Standards Council to validate an entity's adherence to PCI-DSS.

•Reliability. We leverage our extensive on-the-ground experience to provide a reliable payments experience that is resilient to issues with customers’ networks or internet service providers as well as Toast’s own cloud platform.

•Flexible omni-channel capabilities. Toast provides in-store, digital, and partner payment capabilities. In-store payments through the Toast integrated card reader and Toast Tap reader support card dipping, tapping, and swiping as well as Apple Pay, Google Pay, and Samsung Pay, with fraud detection capabilities to minimize transaction risks. Using Toast-provided payments across channels simplifies our customers’ experience, providing them with a single daily deposit of funds and consolidated reporting for easier accounting.

Hardware

•User-friendly, durable, and designed to last. Our custom-designed hardware is pre-configured to enable self-installation with limited support and is created to be restaurant grade for spills and drops with a long battery life.

•Device management. Our hardware utilizes the open-source Android mobile operating system which enables us to freely distribute the operating system to the Toast terminal and handheld devices. Proprietary management tools are designed to allow Toast to safely and efficiently upgrade POS software and device firmware as well as to monitor the health of devices across the fleet.

•Cellular backup. We provide optional cellular backup in Toast Go® 3 handhelds that allows seamless online operation including payments, kitchen syncing, and ticket printing when handhelds move beyond

Wi-Fi. We provide optional cellular backup in routers to provide redundancy when our customers’ internet service is disrupted.

Our Growth Strategy

Our strategy is to continue to invest in areas that align with our customers’ needs and strategically open up new markets to serve new customer types. We expect that both we and our customers will continue to realize the value of our platform as we scale, make enhancements to our technology, offer more products and services, and help our customers increase revenue while saving time and money. Toast both drives and benefits from the success of our customers—when they grow, Toast grows through higher payments volume and increased adoption of our full platform.

•Fuel efficient location growth in our core U.S. market. Despite our rapid growth and scale, we estimate that U.S. restaurant locations on our platform account for approximately 20% of the U.S. restaurant market. We expect the restaurant industry to continue to shift toward innovative, digital, cloud-based solutions as restaurants seek to leverage technology to drive more growth and operate more efficiently. We therefore believe there is a substantial opportunity to grow our location footprint. To that end, we intend to invest in our field-based go-to-market engine, customer success through a combination of tailored onboarding services, customer support, and intuitive product design, as well as research and development of new products to serve the evolving needs of restaurants and provide solutions that cater to all segments of the restaurant industry. We also expect to see continued location growth among our existing customers, both as they open new locations and as we continue to roll out the Toast platform to more of our customers’ existing locations.

•Expand our addressable market. We believe there is a significant opportunity to expand outside of the United States as well as to expand the types of customers we serve. We see opportunities to use our technology and products to serve new customer types to expand our addressable market beyond restaurants, starting with food and beverage retail customers. We have small and growing investments in sales and research and development to address both the international and food and beverage retail opportunities. We are in the early stages of expanding our addressable market and it is a long-term initiative in our growth strategy.

•Increase adoption of our products. We believe that we are well-positioned to sell additional products to our existing customers through a combination of sales and marketing efforts and product-led growth. We believe our all-in-one, integrated platform approach is well-suited to a customer base that has historically struggled to adopt technology at the same pace as other industries due to a lack of dedicated information technology resources.

•Invest in and expand our product platform. We intend to further invest in research and development to expand the functionality of our current platform and to broaden the subscription services and financial technology solutions we offer. We believe our proven track record and continued strategy to build products that directly address key pain points for our stakeholders will differentiate us and help grow our addressable market. We also believe we have an opportunity to expand the ways in which we leverage the data on our platform to help our customers succeed.

•Further develop our partner ecosystem. Toast’s integrated platform currently connects customers to over 200 partners, providing our customers with the tools and features they need to run their business. Today, we have partnerships in place across a spectrum of solutions that include employee management, reservations, inventory, accounting, security, analytics, marketing and customer relationship management, loyalty, mobile pay, gift cards, online ordering, and more. We intend to continue expanding our technology and channel partnerships to deliver even more value to our customers and increase the strategic nature of our platform.

•Selectively pursue inorganic growth. We intend to selectively explore inorganic product and technology growth opportunities to build out our portfolio and strengthen our ecosystem advantage. We believe that the scale of our partner ecosystem provides additional visibility into what products would be most valuable to our customers.

Customer Success

Our customer success team supports our customers through their entire lifecycle beginning with onboarding and extending to ongoing customer care, including product enablement and education around industry best practices. We invest in scalable and efficient onboarding solutions that offer a differentiated customer experience. We currently offer on-site, remote, and self-guided implementation options to our customers.

We offer multi-channel customer support 24 hours per day, 7 days a week, 365 days per year via chat or phone. We built our entire platform to be cloud-based, so our customer success team can provide seamless support remotely. Due to the all-in-one nature of our platform, we offer customers a single point of contact for any issues across their entire technology stack. We invest significantly in customer service and consider these investments to be a key competitive differentiator.

Sales and Marketing

The food and beverage industry is a local industry. Operators purchase everything from food and alcohol to equipment and table linens from individuals that they know and trust. Our sales and marketing motion is designed from the ground up to integrate into this dynamic by combining a high-volume marketing engine with a localized and consultative sales force.

We start with in-market sales teams that are deeply familiar with, and trusted by, the local community. This deep knowledge of the local food and beverage scene provides us with a competitive advantage. Our sales team consists of an acquisition team that is focused on new location growth and is organized by customer size (i.e., number of locations per customer), type, and geography. The acquisition team is complemented by a growth team that focuses on expansion into the install base.

To generate and capture demand we invest heavily in the primary discovery channels for restaurant and food and beverage retail operators. We combine our demand generation efforts with pricing and packaging that is designed to increase platform adoption and simplify the buying process for operators. This approach provides multiple entry points into the Toast platform ranging from a single terminal point of sale to a multi-product setup for a complex restaurant or food and beverage retail operation.

As Toast continues to grow, so does the importance of brand recognition and our investments into strengthening it. This brand recognition will help continue to drive growth in the restaurant and retail community and increase referrals.

Research and Development

Our product development strategy is grounded in deep customer understanding and focused on delivering reliable, scalable capabilities that address the critical operational workflows of restaurants and food and beverage retailers. Our development process incorporates insights from market and user research, strategic planning, and iterative financial analysis, but it is first and foremost driven by our customer obsession and our mission to empower the restaurant and food and beverage retail community to delight their guests, do what they love, and thrive. We believe this focus on solving real operational challenges for our customers is fundamental to building durable products and driving long-term platform value.

Our research and development teams operate on a full-stack development model, organized into cross-functional groups with end-to-end responsibility across product management, design, engineering, analytics, and data science. This structure enables teams to move quickly, make informed trade-offs, and deliver integrated solutions that align closely with customer needs. Our platform architecture provides shared services, common capabilities, and reusable components that allow product teams to build and scale new functionality efficiently while maintaining reliability, security, and consistency across the platform.

Our research and development personnel are distributed across North America, Europe, and Asia, enabling us to access global talent and support a growing and increasingly diverse customer base. Our teams include professionals with expertise across product management, user experience design, software engineering, data

science, and quality assurance. This global footprint supports both the ongoing enhancement of our existing products and the development of new capabilities that extend the value of our platform over time.

Competition

The market is competitive and evolving rapidly. Our platform combines functionality from numerous product categories, and we therefore compete with a range of providers, including cloud-based point of sale platforms, legacy point of sale platform payments solutions, and point technology providers with products addressing specific front of house or back of house operations. We compete on the basis of a number of factors including:

•the ability to provide an all-in-one software and financial technology platform specifically designed to meet the existing and future technology needs of prospective customers, including comprehensive partner ecosystem integrations;

•product performance, flexibility, durability, ease of use, security, scalability, and reliability;

•brand recognition, reputation, and customer satisfaction;

•the availability and quality of support and other professional services, including the ability to onboard prospective customers in a timely and cost-efficient manner;

•the ability to operate and support all geographic markets specified by the prospective customer; and

•the ability to integrate systems seamlessly and at low costs to provide important data insights.

We believe that we compete favorably with respect to these factors. Furthermore, we expect that our industry will continue to attract new market entrants, including smaller emerging companies, which could introduce new offerings. We may also expand into new markets and encounter additional competitors in such markets.

For more information regarding the competitive risks we face, see “Risk Factors” included in Part I, Item 1A of this Annual Report on Form 10-K.

Seasonality

Information regarding seasonality is provided in this Annual Report on Form 10-K in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under the heading “Seasonality.”

Human Capital

As of December 31, 2025, we had approximately 6,500 employees worldwide. We also engage consultants as needed to support our business and operations from time to time.

Core to our success is our passionate and diverse team of Toasters, led by a skilled and experienced leadership team with a proven track record of scaling leading platforms and organizations. Our Toast values guide our culture, and support a sense of belonging among Toasters. We have not experienced any work stoppages and consider our employee relations to be strong. We continue to maintain high employee engagement and satisfaction, as assessed by our annual internal culture and independent surveys.

Toast is committed to supporting employee safety and well-being. We offer competitive compensation and benefits that support our employees’ overall well-being, including healthcare, mental health support programs, and parental and family leave, as well as equity compensation, retirement savings, and company 401k match.

We believe that having a diverse and inclusive workforce is a strategic enabler to our business success. Our goal is to create a culture where all Toasters can thrive and our strategy is rooted in four key beliefs: great talent is everywhere; difference enables innovation; to reach our customers, we must understand them; and we want to be the best place to work for our Toasters.

Corporate Social Responsibility

At Toast, we are committed to enriching the food experience for all and harnessing our people, products, and philanthropy to maximize our positive impact on the world.

Toast.org, our social impact arm, is focused on solving critical issues in the food ecosystem that impact communities and the planet. In furtherance of Toast’s values and these goals, we joined Pledge 1%, a global movement that encourages and empowers companies of all sizes and stages to donate 1% of their staff time, product, profit, and/or equity to the philanthropic pursuits of their choosing. As a part of this initiative, our Board reserved a total of 5.5 million Class A common shares, annual installments of which are transferred as bona fide gifts to a charitable organization to fund our social impact initiatives through Toast.org.

In 2025, Toast.org commitments focused on addressing hunger and food insecurity, and supporting the next generation of industry leaders through culinary training programs. We announced a $5 million, five-year commitment to address hunger and food insecurity globally, making grants to hunger-relief organizations as well as directly to U.S. restaurants fighting hunger in their local communities. Our support of culinary training programs expanded to include the provision of donated Toast systems for students to train on.

Environmental, Social, and Governance, or ESG, matters including diversity, social and climate-related matters, are guided by our corporate social responsibility executive committee and overseen by the Nominating and Corporate Governance Committee of our Board. We are committed to supporting efforts to minimize both our use of natural resources and waste production. Our environmental efforts span our operations, platform, and products — including our workplaces, the full life cycle of our hardware and how we can help our customers and their guests reduce their impacts.

Intellectual Property

We rely on a combination of patent, trade secret, copyright, and trademark laws, a variety of contractual arrangements, such as license agreements, assignment agreements, confidentiality and non-disclosure agreements, and confidentiality procedures and technical measures to gain rights to and protect the intellectual property used in our business.

We have also developed a patent program and a strategy to identify, apply for, and secure patents for innovative aspects of our platform and technology. As of December 31, 2025, we have 67 U.S. patent applications allowed/granted, and in addition we have 10 U.S. patent applications pending. Our issued patents are estimated to expire between 2034 and 2044. Such expiration dates may vary based on a variety of factors, including benefit claims, term adjustments, and/or extensions as well as the timely payment of maintenance fees. We intend to pursue additional patent protection to the extent we believe it would be beneficial and cost effective.

We have an ongoing trademark and service mark registration program pursuant to which we register our brand names and product names, taglines, and logos in the United States and other countries to the extent we determine appropriate and cost effective. We have multiple pending trademark applications and also have common law rights in some trademarks. In addition, we have registered domain names for websites that we use in our business, such as www.toasttab.com and other variations.

We intend to pursue additional intellectual property protection to the extent we believe it would be beneficial and cost effective. Despite our efforts to protect our intellectual property rights, they may not be respected in the future or may be invalidated, circumvented, or challenged. See the sections titled “Risk Factors,” including the section(s) titled “Risk Factors—Risks Related to Our Intellectual Property” for a description of the risks related to our intellectual property.

Government Regulation

Various aspects of our business and service areas are subject to U.S. federal, state, and local regulation, as well as regulation outside the United States. As more fully described below, certain of our services also are, or may be in the future, subject to the laws, rules, and regulations that are related to acceptance of credit cards and debit cards, payments services (such as payment processing and settlement services), including laws concerning consumer financial protection, anti-money laundering and escheatment. From time to time, we may launch pilot programs or early-stage products, which may subject us to additional state or federal laws or regulations. We also are, or may be in the future, subject to rules promulgated and enforced by multiple authorities and governing bodies in the United States, including federal, state and local agencies, payment card networks and other authorities, and internationally. These descriptions are not exhaustive, and these laws, regulations, and rules frequently change and are increasing in number.

BSA and FinCEN Regulation

Certain of our payment technology solutions are or may become subject to anti-money laundering laws and regulations under the Bank Secrecy Act of 1970, as amended by the USA PATRIOT Act of 2001, or the BSA. The BSA requires certain financial institutions, including banks and money services business, or MSBs (such as money transmitters), to register with the Treasury Department’s Financial Crimes Enforcement Network, or FinCEN, as MSBs and to develop and implement risk-based anti-money laundering programs, report large cash transactions and suspicious activity, and maintain transaction records, among other things.

Our subsidiary, Toast Processing Services LLC, or TPS, is registered as an MSB with FinCEN in its capacity as a money transmitter. As an MSB, we are required to maintain a written anti-money laundering program, or AML Program, that meets the standards set forth in the FinCEN regulations implementing the BSA. In addition, our AML Program is designed to address and comply with the Money Laundering Control Act and other U.S. laws and regulations regarding anti-money laundering and countering the financing of terrorism, which we refer to as AML/CFT, and to control for the AML/CFT risks inherent to our business. The AML Program is also designed to prevent our platform from being used to facilitate business with certain individuals, entities, countries, and territories that are targets of economic or trade sanctions, including those imposed by the Treasury Department’s Office of Foreign Assets Control.

State Licensing Requirements

Certain of our payment technology solutions are or may become subject to state money transmitter or payroll processor laws and regulations. TPS is licensed as a money transmitter in most states in connection with certain payroll processing services we provide. Federal and state money transmitter laws and regulations impose a variety of requirements and restrictions on us, including anti-money laundering program requirements; record-keeping requirements; disclosure requirements; examination requirements; annual or biennial activity reporting and license renewal requirements; notification and approval requirements for changes in our officers, directors, stock ownership or corporate control; permissible investment requirements; capital or minimum net worth requirements; bonding; restrictions on marketing and advertising; qualified individual requirements; anti-money laundering and compliance program requirements; data security and privacy requirements; and review requirements for customer-facing documents.

Additionally, states impose a variety of licensing requirements on entities engaged in certain insurance related activities. Our subsidiary, Toast Insurance Services, Inc., has obtained certain insurance related licenses from all 50 states plus Washington, D.C. As a result, we are currently subject to a variety of, and may in the future become subject to additional or newly enacted, state insurance laws and regulations in various jurisdictions.

Card Network and Nacha Rules

We rely on our relationships with financial institutions and third-party payment processors to access the payment card networks, such as Visa and Mastercard, which enable the acceptance of credit cards and debit cards by our customers, and our ability to explore and offer certain other products. We pay fees to such financial institutions and third-party payment processors for such services. We are required by these third-party payment processors to register with Visa, Mastercard, and other card networks and to comply with the rules and the requirements of these card networks’ self-regulatory organizations. The payment networks and their member financial institutions routinely update, generally expand, and modify requirements applicable to our customers, including rules regulating data integrity, third-party relationships, merchant chargeback standards and compliance with the Payment Card Industry Data Security Standard, or PCI DSS. PCI DSS is a set of requirements designed to ensure that all companies that process, store, or transmit payment card information maintain a secure environment to protect cardholder data. In addition, we pay interchange fees to the financial institutions and payment processors that process card payments. The amount of interchange fees we pay are subject to applicable laws and legal developments, including private litigation settlements between merchants and card networks. Changes in permissible interchange fee limits as a result of change in law or new legal developments may adversely affect our results of operations.

We are also subject to the operating rules of Nacha, formerly the National Automated Clearing House Association. Nacha is a self-regulatory organization which administers and facilitates private-sector operating rules for ACH payments and defines the roles and responsibilities of financial institutions and other ACH network participants. The Nacha Rules and Operating Guidelines, which collectively are referred to as the Nacha Rules, impose obligations on us and our partner financial institutions, such as audit and oversight by the financial institutions and the imposition of mandatory corrective action, including termination, for serious violations.

State Loan Disclosure Requirements and Other Substantive Lending Regulations

Loans facilitated by Toast Capital are subject to state laws and regulations that impose requirements related to commercial loans, including loan disclosures and terms, credit discrimination, and credit reporting. State advertising, loan brokering, loan servicing, and debt collection laws may apply to the marketing and loan administration services we provide to our bank partner that makes the loans facilitated by Toast Capital. As state laws governing commercial lending continue to evolve, Toast Capital may now, or in the future, be required to make a regulatory filing or registration to provide commercial loan facilitation services in certain states.

FTC Act and Unfair and Deceptive Acts and Practices

Section 5 of the Federal Trade Commission Act, or FTC Act, prohibits unfair or deceptive acts or practices. The Federal Trade Commission, or FTC, enforces Section 5 of the FTC Act against non-banks and has a history of pursuing enforcement actions for alleged unfair or deceptive acts or practices in connection with the marketing or servicing of financial and other products and services that are marketed to consumers or small businesses. The FTC has jurisdiction over us and our business practices.

Payroll Card and On-Demand Pay Regulations

Together with our bank partner, we offer a payroll card, which allows the restaurant’s employees to receive wages, tips, and other compensation from their employers. These debit cards are subject to federal and state financial services laws, as well as the payment card network rules and Nacha Rules. The Durbin Amendment to the Dodd-Frank Act and its implementing regulation, Regulation II, limit the amount of interchange revenue that the bank partner may receive, and share with us, on transactions made using these cards.

Payroll cards are subject to additional consumer financial regulation under federal law and state law. For example, the Electronic Fund Transfer Act, and its implementing regulation, Regulation E, impose requirements on payroll cards, including requirements related to consumers’ rights and liabilities, treatment of funds on lost or stolen cards, error resolution and investigation, upfront fee disclosures, and access to account information. Additionally, state employment and payroll regulations impose regulations on the use of payroll cards to disburse wages and other compensation.

Further, Toast PayOut, a feature of the payroll card Toast offers, allows restaurant employees the ability to access a portion of their wages and tips prior to payday. While our PayOut product is structured as a

commercial line of credit to the restaurants, proposals to adopt or change state and/or federal statutes or regulations or the issuance of agency guidance related thereto, may bring PayOut within the scope of on-demand pay services, which could affect PayOut’s operating environment in substantial and unpredictable ways. These proposals or issuances may impact our ability to offer PayOut in a particular jurisdiction, or at all.

Stored Value Services

Stored value cards, gift cards and electronic gift certificates may trigger various federal and state laws and regulations. The customers who utilize our gift card processing products and services may be subject to these laws and regulations, which may include the Credit Card Accountability Responsibility and Disclosure Act of 2009.

Communications Regulation

We send texts, emails, and other communications to our customers in a variety of contexts. We also provide services that allow our customers to send emails, texts, and other communications to their guests, for example, when providing digital receipts and marketing. Communications laws and regulations, including those promulgated by the Federal Communications Commission, apply to certain aspects of this activity in the United States and elsewhere.

Privacy and Consumer Information Security

In the ordinary course of our business, we access, collect, store, use, transmit and otherwise process certain types of data, including personal information, which subjects us to numerous federal and state privacy and information security laws, rules, industry standards and regulations designed to regulate consumer information and data privacy, security and protection, and mitigate identity theft. These laws, some of which are discussed below, impose obligations with respect to the collection, processing, storage, disposal, use, transfer, retention and disclosure of personal information, and, with limited exceptions, give consumers the right to restrict the use of their personal information and the disclosure of it to third parties. Such laws and regulations have been rapidly evolving in recent years with regulators signaling an increased focus on their application and enforcement. Our ongoing efforts to comply with them are likely to have a significant impact on our business and present an increased risk to our business in the event of any actual or perceived noncompliance.

Under certain U.S. federal laws, including, for example, the Gramm-Leach-Bliley Act, or GLBA, and Regulation P promulgated thereunder, we must disclose our privacy policy and practices, including those policies relating to the sharing of nonpublic personal information with third parties. The GLBA may restrict the purposes for which we may use personal information obtained from consumers and third parties. We may also be required to provide consumers the ability to opt-out from certain sharing of their personal information.

U.S. state consumer privacy laws, including the California Consumer Privacy Act, or the CCPA, as amended by the California Privacy Rights Act, has directly impacted our business operations in that it has created data use, sharing and transparency requirements and provides California residents certain rights concerning their personal information, such as access, correction, deletion and opt out of selling or sharing such data. In addition to the CCPA, numerous other states have enacted similar consumer privacy laws. We expect the number of states with such laws to continue to grow over time. While personal information that we process that is subject to the GLBA is exempt from the CCPA and many of these other state laws, the CCPA and these additional state laws will regulate other personal information that we collect and process and impose new consumer rights and limitations around personal information. Legislators and regulators at the state and federal level are continuing to propose new requirements, including layering requirements related to AI over existing privacy regulations, that may, if passed, deviate from or exceed the requirements of the laws and regulations that already apply to our business.

Additionally, as we grow our business internationally, we are subject to the European Union General Data Protection Regulation, or the EU GDPR, and the EU GDPR in such form as incorporated into the laws of the United Kingdom, collectively with EU GDPR, referred to as GDPR, to the extent it regulates the processing of personal information of individuals in these jurisdictions. The GDPR is wide-ranging in scope and imposes numerous requirements, including requirements relating to having legal bases and/or conditions for processing personal information, providing details to those, security measures, having data processing agreements with third parties, responding to individuals’ requests to exercise their rights, reporting security breaches involving

personal information to the competent authorities and affected individuals, ensuring certain accountability measures are in place and record keeping. We may also be subject to Canada’s Personal Information Protection and Electronic Documents Act along with provincial legislation similarly impacting our operations on account of requirements related to collecting, processing and cross-border transfers of personal information. Similarly, we may become subject to the privacy and security laws of other jurisdictions as we continue to expand our international operations, and these laws may have impacts on our business similar to those already set out above.

Channels for Disclosure of Information

Our Annual Report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports, filed or furnished pursuant to Sections 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, are available, free of charge, on our website as soon as reasonably practicable after such reports are electronically filed with, or furnished to, the Securities and Exchange Commission, or the SEC. These reports may be accessed through our website’s investor relations page at investors.toasttab.com. Further, the SEC’s website, www.sec.gov, contains reports and other information regarding our filings.

Investors, the media, and others should note that we announce material information to the public through filings with the SEC, the investor relations page on our website, press releases and public conference calls and webcasts. The information disclosed by the foregoing channels could be deemed to be material information. As such, we encourage investors, the media, and others to follow the channels listed above and to review the information disclosed through such channels. Any updates to the list of disclosure channels through which we will announce information will be posted on the investor relations page on our website.

Corporate Information

We were incorporated under the laws of Delaware in December 2011 under the name Opti Systems, Inc. We changed our name to Toast, Inc. in May 2012. Our principal executive offices are located at 333 Summer Street, Boston, Massachusetts 02210 and our telephone number is (617) 297-1005. Our website address is www.toasttab.com. We do not incorporate the information on or accessible through our website into this Annual Report on Form 10-K, and you should not consider any information on, or that can be accessed through, our website to be part of this Annual Report on Form 10-K. We have included our website address in this Annual Report on Form 10-K solely as an inactive textual reference.

“Toast,” our logo, and our other registered or common law trademarks, service marks, or trade names appearing in this Annual Report on Form 10-K are the property of Toast, Inc. Other trademarks and trade names referred to in this Annual Report on Form 10-K are the property of their respective owners.