Toast
30 named things its latest annual report says its results depend on, each in the company's own words. 18 of them are also named by other companies we've read.
Customers
Small- and medium-sized restaurants (SMBs)
concentrated innamed as a riskA majority of our customers are SMBs and we expect they will continue to comprise a large portion of our customer base for the foreseeable future.Risk factors (Item 1A)
Suppliers
Amazon Web Services (AWS)
depends onnamed as a riskWe primarily rely on Amazon Web Services to deliver our services to customers on our platform, and any disruption of or interference with our use of Amazon Web Services could adversely affect our business, financial condition, and results of operations.Risk factors (Item 1A)
Also named by AAON, ABNB, ADSK, AIOT, BLK, CARR, CG, COF and 56 more
Third-party payment processors
depends onnamed as a riskWhile we may continue to seek payment processing relationships with additional payment processors from time to time, we expect to continue to rely on a limited number of payment processors for the foreseeable future.Risk factors (Item 1A)
Single-source hardware components and contract manufacturer
depends onnamed as a riskIn addition, in some cases, we rely only on one hardware manufacturer to fabricate, test, and assemble our products.Risk factors (Item 1A)
Partners and platforms
Toast Capital bank partner (Utah-chartered FDIC-insured industrial bank)
depends on · 15% of the original principal amount of loans made in the applicable quarternamed as a riskWe do not currently have partnerships with other financial institutions for such loans and are reliant on our bank partner to support this program.Risk factors (Item 1A)
Visa
subject tonamed as a riskFurther, our contracts with third-party payment processors require, and additional contracts may in the future require, us to bear risk for compliance with the operating rules, or the Payment Network Rules, of Visa, Mastercard, and other payment networks, or collectively, the Payment Networks, with whom we are registered as a payment facilitator or certified service provider, and applicable law, and the risk of fraud.Risk factors (Item 1A)
Also named by AFRM, AXP, CASH, COF, EEFT, FIS, FISV, GPN and 6 more
Online food marketplace referral partners
depends onnamed as a riskIf any of our third-party partners, such as our partners in the online food marketplace that provide referrals, were to switch to providing marketing support for another payment processor, terminate their relationship with us, merge with or be acquired by one of our competitors, or shut down or become insolvent, we may no longer receive the benefits associated with that relationship, such as new customer referrals, and we also risk losing existing customers and the related payment processing that were originally referred to us by such third-party.Risk factors (Item 1A)
Places
United States
concentrated in · approximately 20% of the U.S. restaurant marketDespite 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.Business (Item 1)
Also named by ABBV, ADP, AJG, AMGN, APA, AXGN, AXP, BALL and 139 more
China
depends onnamed as a riskAdditionally, various sources of supply-chain risk, including strikes or shutdowns at delivery ports or loss of or damage to our products while they are in transit or storage, intellectual property theft, losses due to tampering, third-party vendor issues with quality or sourcing control, failure by our suppliers to comply with applicable laws and regulations, existing and potential tariffs and sanctions, including those applicable to our relationships with vendors in China, or other trade restrictions, or other similar problems could increase our cost of production, limit or delay the supply of our products, or harm our reputation.Risk factors (Item 1A)
Also named by A, AA, AAOI, AAP, AAPL, AB, ADI, AEHR and 261 more
Commodities and inputs
Memory chips
exposed to its pricenamed as a riskFor example, the recent increase in demand for memory chips, driven by the rapid development of generative AI and large language models, could adversely affect our ability to source certain components for our hardware products, potentially leading to higher sourcing costs, increased delivery lead times, and production or delivery delays.Risk factors (Item 1A)
Regulators
Federal Trade Commission (FTC)
subject tonamed as a riskThe FTC has jurisdiction over us and our business practices.Business (Item 1)
Also named by AMZN, AN, AVGO, BJ, CART, CELH, CHD, CHE and 56 more
Federal Deposit Insurance Corporation (FDIC)
subject tonamed as a riskAs a service provider to financial institutions, such as banks, we are or may become subject to regulatory oversight and examination by the Federal Financial Institutions Examination Council, an interagency body, the Board of Governors of the Federal Reserve System, or the Federal Reserve, the Office of the Comptroller of the Currency, or the OCC, the FDIC, the Consumer Financial Protection Bureau, or CFPB, and various other federal and state regulatory authorities.Risk factors (Item 1A)
Also named by AFRM, BAC, BNY, CASH, CFG, CFR, COF, FCFS and 27 more
Laws and programs
EU General Data Protection Regulation (GDPR)
subject to · 4% of worldwide annual revenue or €20 millionnamed as a riskFor example, under the GDPR, noncompliance can result in penalties up to the greater of 4% of worldwide annual revenue or €20 million (£17.5 million in the UK) depending on the circumstances.Risk factors (Item 1A)
Also named by ACN, ADSK, AIG, ALK, AMG, ANET, APG, AXON and 61 more
State insurance laws
subject to · all 50 states plus Washington, D.C.named as a riskOur subsidiary, Toast Insurance Services, Inc., has obtained certain insurance related licenses from all 50 states plus Washington, D.C.Business (Item 1)
California Consumer Privacy Act (CCPA)
subject tonamed as a riskThe effects of the CCPA are potentially significant and may require us to modify our data collection or processing practices and policies and to incur substantial costs and expenses in an effort to comply and increase our potential exposure to regulatory enforcement and/or litigation.Risk factors (Item 1A)
Also named by AAP, AIOT, AKAM, ALL, APP, AYI, BAC, BBSI and 69 more
EU Artificial Intelligence Act
subject tonamed as a riskAs enacted, the AI Act imposes significant obligations on providers and deployers of high-risk AI systems and encourages providers and deployers of AI systems to account for EU ethical principles in their development and use of these systems.Risk factors (Item 1A)
Also named by ABNB, ADP, AIOT, AKAM, ALAB, AMG, APP, AVAV and 24 more
Payment Card Industry Data Security Standard (PCI DSS)
subject tonamed as a riskThe Payment Network Rules require us to also comply with the Payment Card Industry Data Security Standard, or the Security Standard, which is a set of rules and standards designed to ensure that all companies that process, store, or transmit payment card information maintain a secure environment to protect cardholder data.Risk factors (Item 1A)
Also named by ABNB, AZO, BJ, BKNG, CASH, CASY, COST, DOV and 20 more
Bank Secrecy Act (BSA)
subject tonamed as a riskRegistration as an MSB subjects us to the regulatory and supervisory jurisdiction of FinCEN, the anti-money laundering provisions of the BSA, and its implementing regulations applicable to MSBs.Risk factors (Item 1A)
Also named by AUB, BAC, CASH, CPAY, CUBI, EFSC, EWBC, EZPW and 10 more
Equal Credit Opportunity Act
subject tonamed as a riskLending facilitated through the Toast Capital platform must comply with anti-discrimination statutes such as the Equal Credit Opportunity Act and state law equivalents that prohibit creditors from discriminating against loan applicants and borrowers based on certain characteristics, such as race, religion and national origin.Risk factors (Item 1A)
Also named by AFRM
Nacha Rules
subject tonamed as a riskIf we or our customers fail to comply with the Nacha Rules or if our processing of customer transactions is materially or routinely delayed or otherwise disrupted, our partner financial institutions could suspend or terminate our access to Nacha’s clearing and settlement network, which would make it impossible for us to conduct our business on its current scale.Risk factors (Item 1A)
State money transmitter licensing laws
subject tonamed as a riskTPS is licensed as a money transmitter in most states in connection with certain payroll processing services we provide.Business (Item 1)
State usury and true lender laws
subject tonamed as a riskIf we were to be determined the “true lender” of loans facilitated through the Toast Capital platform, we could face penalties and/or loans facilitated through the Toast Capital platform may be or become void, voidable, or otherwise impaired in a manner that may have adverse effects on our operations (either directly or as a result of an adverse impact on our relationship with our bank partner).Risk factors (Item 1A)
Interagency Guidance on Third-Party Relationships: Risk Management
subject tonamed as a riskThe increased supervisory attention on bank partnership arrangements could make bank service provider arrangements more costly, and lead to increases in our operating costs.Risk factors (Item 1A)
Toast PayOut on-demand pay regulation
subject tonamed as a riskThese proposals or issuances may impact our ability to offer PayOut in a particular jurisdiction, or at all.Business (Item 1)
Durbin Amendment / Regulation II
subject toThe 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.Business (Item 1)
Electronic Fund Transfer Act / Regulation E
subject toFor 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.Business (Item 1)