The short answer
Toast (TOST) remains doubtful under ZakatInvest's qualitative verdict, and its latest total-assets financial screen fails on identifiable liquidity. Toast is a technology platform for restaurants and retail businesses, but its financial technology line includes payment processing and it purchases restaurant loans through Toast Capital. The filing does not quantify alcohol, pork, betting or lending revenue well enough to turn the facilitation question into a universal percentage.
This is a reproducible research screen, not a fatwa or investment recommendation. Scholars can differ on payment-network facilitation, merchant-category exposure, conventional lending, customer-funds structures and whether a neutral software platform shares responsibility for a customer's underlying sale.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.
0 / 3,094
1,770 / 3,094
1,236 / 3,094
13 / 1,630
- 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.
- 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.
- 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.
- 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.
Current quantitative screen
The calculations above use Toast's official filing (Form 10-Q for the quarter ended March 31, 2026). Amounts are in USD millions and use total assets as the denominator so the inputs can be reproduced from the filing.
- Interest-bearing debt / assets: 0.00%, because Toast reported no borrowings outstanding under its credit facility at March 31, 2026. Operating leases and warrants are reported separately.
- Cash plus identified marketable securities / assets: 57.21%, using $1,098 million of cash and $672 million of marketable securities. Customer-held cash and restricted collateral are excluded.
- Receivables plus cash / assets: 39.95%, using $138 million of net receivables plus $1,098 million of cash.
- Interest income, net / revenue: 0.80%, using the disclosed $13 million line against $1,630 million of quarterly revenue. This is not a Toast Capital-only or gross-interest numerator.
The reproduced FTSE Yasaar, MSCI total-assets and Malaysia SAC financial-ratio calculations fail because the identifiable liquidity ratio is above the examined one-third limits; MSCI also fails the receivables-plus-cash test. Market-cap-denominator methods are not calculated because this site does not store a licensed, reproducible historical market-cap series for the filing date.
What Toast does
Toast describes itself as a global technology platform built for restaurant and retail businesses. It integrates software, agentic AI, payments, financial technology solutions and hardware. For the quarter ended March 31, 2026, the filing reports $268 million of subscription-services revenue, $1.323 billion of financial-technology-solutions revenue and $39 million of hardware and professional-services revenue, for $1.630 billion total revenue.
Toast served approximately 171,000 locations and processed $51.3 billion of quarterly gross payment volume according to its first-quarter results. The scale of the payment line matters, but gross payment volume is not the same thing as Toast revenue and cannot be used as a prohibited-revenue numerator without merchant-category data.
Qualitative considerations
- Payment processing and merchant categories: Toast serves restaurants and retailers rather than a screened halal-only customer base. The financial-technology-solutions line does not separate alcohol, pork, betting, tobacco, conventional-credit or other merchant categories. Some scholars treat payment infrastructure as a neutral intermediary; others view knowingly facilitating prohibited sales as a material concern.
- Toast Capital lending: Toast purchases qualifying loans from a bank partner and held $22 million of loans for investment at March 31, 2026. The filing says income is recognized over the life of those loans using the effective-interest method. This confirms a real lending exposure, but not its full revenue share or a universal ruling on the platform.
- Financial technology concentration: financial technology solutions were 81.17% of quarterly revenue, but that category combines payment processing and other products. It should not be described as a pure SaaS business or assigned an unsupported fixed revenue split.
- Customer funds and restricted cash: Toast reports $241 million of cash held on behalf of customers and $74 million of restricted cash tied to lending collateral. These balances are separately identified and matched to obligations; they are not silently treated as unrestricted Toast liquidity.
- Data, credit and consumer protection: POS, payroll, ordering, AI, fraud, lending and payment data raise privacy, cybersecurity, discrimination, consent, pricing, credit-loss and merchant-screening questions alongside the Sharia analysis.
How the methodologies differ
Under FTSE Yasaar, debt and receivables-plus-cash are below their examined thresholds, but liquidity is 57.21% of total assets and fails. Under the MSCI total-assets calculation, both liquidity and receivables-plus-cash exceed the examined limits. Under the Malaysia SAC financial-ratio calculation, debt passes but liquidity fails. These are calculations against named methods, not official index-membership claims or a universal scholarly ruling; the merchant-category business screen remains incomplete under all three.
Bottom line
TOST is presented as doubtful because both the financial liquidity screen and the payment/lending business questions are material. The current filing corrects the old blanket financial-screen narrative: Toast has no borrowings outstanding, but its cash and marketable-securities balance is high relative to total assets under the reproduced asset-denominator methods.
If you are considering TOST, compare this evidence with the methodology and scholar you follow, monitor the next filing and do not treat a low disclosed interest-income ratio as resolving the separate questions about conventional lending or merchant-category facilitation.
Payment processing, Toast Capital lending and undisclosed merchant categories require methodology- and scholar-specific review.
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