TOST

Toast, Inc.

DOUBTFUL — SCREEN DOES NOT PASSstock

Is TOST Halal?

Restaurant technology platform with material payment-processing and lending concerns; current total-assets financial screens fail on identifiable liquidity.

What You Should Know

Toast's March 2026 filing reports $1.323 billion of financial-technology-solutions revenue, $22 million of loans held for investment and $13 million of interest income, net. Debt/assets are 0.00%, liquidity/assets are 57.21% and receivables plus cash/assets are 39.95%; merchant-category and lending revenue are not disclosed well enough for a universal prohibited-revenue percentage.

⚠️ Concerns

  • Payment-processing revenue by alcohol, pork, betting and other merchant categories is not separately disclosed
  • Toast Capital purchases and holds restaurant loans through a bank partner
  • Marketable securities and cash were 57.21% of total assets
  • Customer funds, restricted cash, privacy, credit, fraud and AI-governance practices require continuing review

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.

USD · millions
Interest-bearing debt / assets
0.00%Within limit
Below 33.333% under FTSE Yasaar

0 / 3,094

Cash + interest-bearing securities / assets
57.21%Above limit
Below 33.333% under FTSE Yasaar

1,770 / 3,094

Receivables + cash / assets
39.95%Within limit
Below 50% under FTSE Yasaar

1,236 / 3,094

Non-compliant income / revenue
0.80%Within limit
No more than 5% under FTSE Yasaar

13 / 1,630

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt is 0.00% and receivables plus cash are 39.95%, but cash plus identified marketable securities are 57.21% of total assets, above the examined FTSE liquidity limit. Disclosed interest income, net is 0.80% of revenue; the business-activity allocation remains incomplete.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

The 57.21% liquidity ratio exceeds the examined MSCI total-assets limit, and receivables plus cash are 39.95%, above its 33.33% limit. This is a calculation against the named total-assets method, not an index-membership claim; product and merchant-category activity remain unresolved.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Debt is 0.00%, but identifiable conventional liquidity is 57.21%, above the examined 33% limit. This is a calculation against SAC ratios, not an official SAC classification of a U.S.-listed security; the business screen remains incomplete.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Not calculated

A properly licensed and reproducible historical market-cap series is not stored, so these methods are not estimated from a current spot price.

Business-activity disclosure

Toast is a technology platform for restaurant and retail businesses integrating software, agentic AI, payments, financial technology solutions and hardware. Subscription and hardware activities can be neutral-purpose, while payment processing for alcohol, pork or betting transactions and conventional lending through Toast Capital raise school- and contract-specific facilitation questions.

Limitation: The latest filing reports revenue as subscription services, financial technology solutions and hardware/professional services. It does not quantify the portion attributable to alcohol, pork, betting, conventional lending, customer-industry categories or other potentially non-compliant transactions, so no universal prohibited-revenue percentage is entered.

Purification

Toast discloses $13 million of consolidated interest income, net, but does not isolate gross interest income, Toast Capital income or screened transaction revenue. The site therefore does not prescribe a fixed purification percentage; readers should follow the scholar or methodology they use.

Inputs, assumptions and primary sources
  • Interest-bearing debt is entered as zero because Toast reported no borrowings outstanding under its senior secured credit facility at March 31, 2026. Operating lease liabilities and the warrant liability are reported separately and are not treated as interest-bearing debt in this screen.
  • Cash uses cash and cash equivalents of $1,098 million. Cash held on behalf of customers of $241 million and restricted cash of $74 million are excluded because they are separately identified and matched to customer-funds or collateral obligations.
  • Interest-bearing securities use the $672 million marketable-securities balance. The filing identifies money-market funds, commercial paper, certificates of deposit, corporate bonds, agency securities, Treasury bonds and asset-backed securities within the marketable-securities portfolio.
  • Receivables use net accounts receivable of $138 million, including $113 million of accounts receivable and $36 million of unbilled receivables less the reported allowance.
  • Revenue uses $1,630 million for the three months ended March 31, 2026: $268 million subscription services, $1,323 million financial technology solutions and $39 million hardware and professional services.
  • The income statement reports $13 million of interest income, net. This is a disclosed consolidated line, not a gross interest-income or Toast Capital-only numerator; it is retained for the named income ratio without prescribing a fixed purification amount.
  • Toast purchases loans from a bank partner and held $22 million of loans for investment at March 31, 2026, recognizing income over the life of those loans. Payment-processing, lending and customer-industry revenue are not separated into a defensible prohibited-revenue numerator.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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