Toast Could See 'Greater' Earnings Contributions From Financing Program, UBS Says

12:15 PM EDT, 09/28/2026 (MT Newswires) -- Toast's (TOST) built-in financing program, called Toast Capital, has the potential for "greater" contributions to earnings per share over time, UBS Securities said in a Thursday note. The company could expand Toast Capital closer to its point-of-sale industry peers, with its potential for increased lending penetration assuming stable gross profit take rates and credit performance, the brokerage said. Toast Capital's held-for-investment loans are estimated to retain the "highest economics," followed by credit risk transfers, and then forward flow, UBS said. The held-for-investment loans have full interest income recognition, but the company expects credit risk transfers to be the main funding source over time, according to the investment firm. UBS Securities has a buy rating on Toast, with a a $39 price target. Price: 30.26, Change: -0.35, Percent Change: -1.13