Lightspeed POS Inc (LSPD) AI Stock Analysis

• Market Cap: C$2.17B
• Dividend Yield: N/A
• Average Volume (3M): 775.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.18
• Revenue Growth: 23.95%
• EPS Growth: 39.68%
• Country: CA
• Employees: 3,000
• Sector: Technology
• Sector Strength: 63
• Industry: Software - Application
• EPS (TTM): -1.10
• Shares Outstanding: 152,974,440
• 10 Day Avg. Volume: 715,213
• 30 Day Avg. Volume: 775,845
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.67
• Price to Cash Flow (P/CF): -28.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.38
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$18.14
• Price Target Upside: 27.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21

Lightspeed POS Inc shows strong revenue growth and a solid financial structure, but profitability and cash flow challenges persist. Technical indicators and valuation metrics suggest caution, while strategic initiatives and corporate events provide positive signals. Overall, the score reflects a balanced view of opportunities and challenges facing the company.

Positive Factors

Growth Strategy

The company's strategy to expand its European salesforce, which has already grown significantly and is expected to continue growing, should drive higher bookings.

Market Opportunities

Lightspeed sees a significant total addressable market in retail verticals, with a strong supplier integration contributing to a high win rate.

Profitability

Lightspeed's profitability is expected to grow with higher penetration of LSPD Payments and better software growth.

Negative Factors

Macro Conditions

Several macro conditions have deteriorated, reducing discretionary spending and same-store-sales, leading to declining SMB optimism and dampening new business formation.

Market Share

Little evidence of market share gains means these targets are aspirational at best and likely viewed by the market as unrealistic.

Revenue Guidance

LSPD updated its FY25 revenue guidance to ~18% from ~20%, primarily from macro impacts that are impacting transaction-based revenue.

Lightspeed POS Inc Business Overview & Revenue Model

Company Description

Lightspeed Commerce Inc. provides commerce enabling Software as a Service (SaaS) platform for small and midsize businesses, retailers, restaurants, and golf course operators in Canada, the United States, Australia, the Netherlands, and internationally. Its SaaS platform enables customers to engage with consumers, manage operations, accept payments, etc. The company's cloud platforms are designed interrelated elements, such as omni-channel consumer experience, a comprehensive back-office operations management suite to improve customers' efficiency and insight, and the facilitation of payments. Its platform functionalities include full omni-channel capabilities, point of sale (POS), product and menu management, employee and inventory management, analytics and reporting, multi-location connectivity, order-ahead and curbside pickup functionality, loyalty, and customer management solutions. The company also offers tailored financial solutions, such as Lightspeed Analytics; Lightspeed Payments; and Lightspeed Capital, a merchant cash advance program. In addition, it sells POS peripheral hardware, including tablets, customer facing displays, receipt printers, networking hardware, cash drawers, payment terminals, servers, stands, bar-code scanners, and an assortment of accessories, as well as provides installation and implementation services. The company was formerly known as Lightspeed POS Inc. and changed its name to Lightspeed Commerce Inc. in August 2021. Lightspeed Commerce Inc. was incorporated in 2005 and is headquartered in Montréal, Canada.

How the Company Makes Money

Lightspeed POS Inc generates revenue through a subscription-based model where businesses pay a recurring fee for access to its software solutions. The company also earns income from the sale of hardware products necessary for POS operations, such as card readers and receipt printers. Additionally, Lightspeed benefits from transaction-based revenue, earning a percentage of sales processed through its payment services. Strategic partnerships with payment processors, financial institutions, and other technology providers further bolster its revenue by expanding its market reach and capabilities.

Lightspeed POS Inc Financial Statement Overview

Summary

Lightspeed POS Inc demonstrates strong revenue growth and a robust balance sheet with minimal leverage. However, the company faces persistent challenges with profitability and cash flow generation. Continued efforts to manage operating expenses and improve cash flow efficiency are critical for long-term financial health.

Income Statement

The company has shown significant revenue growth from 2020 to TTM, with a TTM revenue of approximately $1.05 billion, a substantial increase from $120 million in 2020. However, profitability remains a concern, as evidenced by negative net income and EBIT margins, indicating ongoing operational challenges. While gross profit margin is stable at around 41.6% in TTM, the net profit margin is negative due to high operating expenses.

Balance Sheet

Lightspeed POS Inc maintains a strong equity position with a debt-to-equity ratio of 0.008 in TTM, indicating low leverage. The equity ratio stands at 93.6% in TTM, showcasing a solid capital structure. However, the company has consistently reported negative net income, impacting return on equity negatively and highlighting the need for improving profitability.

Cash Flow

The company has improved its cash flow from operations over the years, though it remains negative at -$51.36 million in TTM. The free cash flow has also shown growth potential but remains negative, indicating ongoing challenges in generating positive cash flows. The operating cash flow to net income ratio is negative, suggesting inefficiency in converting income into cash flows.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
909.27M	730.51M	548.37M	221.73M	120.64M
	Gross Profit
385.25M	331.96M	271.17M	127.30M	77.44M
	EBIT
-203.02M	-1.10B	-318.34M	-129.72M	-58.41M
	EBITDA
-49.43M	-956.91M	-207.94M	-90.69M	-34.25M
	Net Income Common Stockholders
-163.96M	-1.07B	-288.43M	-124.28M	-53.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
722.10M	800.15M	953.65M	807.15M	210.97M
	Total Assets
2.58B	2.67B	3.62B	2.11B	478.43M
	Total Debt
23.21M	25.19M	60.51M	55.45M	46.53M
	Net Debt
-698.89M	-774.96M	-893.14M	-751.70M	-164.44M
	Total Liabilities
162.75M	171.28M	220.69M	171.04M	134.29M
	Stockholders Equity
2.41B	2.50B	3.40B	1.93B	344.14M
Cash Flow		Free Cash Flow
-115.85M	-138.41M	-97.87M	-94.86M	-32.16M
	Operating Cash Flow
-97.67M	-125.28M	-87.22M	-93.06M	-28.55M
	Investing Cash Flow
25.95M	8.82M	-563.93M	-235.05M	-120.29M
	Financing Cash Flow
-6.23M	-35.41M	798.06M	922.32M	153.53M

Lightspeed POS Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LSPD, the sentiment is Negative. The current price of 14.21 is above the 20-day moving average (MA) of 12.69, below the 50-day MA of 15.07, and below the 200-day MA of 19.34, indicating a neutral trend. The MACD of -0.33 indicates Negative momentum. The RSI at 56.01 is Neutral, neither overbought nor oversold. The STOCH value of 88.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LSPD.

Lightspeed POS Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KXS	68 Neutral	C$5.08B	157.81	-0.10%	―	14.85%	-105.25%
LSPD	63 Neutral	C$2.17B	―	-5.18%	―	23.95%	39.68%
Sector *	59 Neutral	$10.73B	10.11	-6.65%	3.02%	7.41%	-11.17%
HUT	49 Neutral	C$1.93B	3.98	2.56%	―	199.41%	―

Lightspeed POS Inc Corporate Events

Lightspeed to Announce Q4 and Full Year 2025 Financial Results

Lightspeed Commerce Inc. has announced that it will release its financial results for the fourth quarter and full year of 2025 on May 22, 2025, before the market opens. The company will hold a conference call and webcast on the same day to discuss these results, which could provide insights into its operational performance and market positioning, potentially impacting stakeholders and the industry at large.

Spark’s Take on TSE:LSPD Stock

According to Spark, TipRanks’ AI Analyst, TSE:LSPD is a Neutral.

The overall stock score reflects strong revenue growth and a positive strategic outlook, but profitability challenges and bearish technical indicators weigh heavily. The recent earnings call and corporate events suggest a confident outlook, though valuation concerns persist.

To see Spark’s full report on TSE:LSPD stock, click here.

Lightspeed Revises Fiscal 2025 Financial Outlook Amid Economic Challenges

Lightspeed Commerce Inc. has revised its fiscal 2025 financial outlook due to deteriorating macroeconomic conditions, including inflationary pressures and weakened consumer confidence, which have impacted consumer spending and small business optimism. The company now expects a year-over-year revenue growth of approximately 18%, down from the previously anticipated 20%, primarily due to pressure on transaction-based revenue. Despite these challenges, Lightspeed remains committed to profitable growth, cost management, and executing its core strengths. The company will present its three-year strategy at the upcoming Capital Markets Day.

Lightspeed Commerce Secures Legal Victory with Dismissal of Class Action Lawsuit

Lightspeed Commerce Inc. announced a significant legal victory as the U.S. District Court for the Eastern District of New York dismissed a securities class action lawsuit against the company and its executives, citing a lack of adequate legal basis for the allegations. The lawsuit was primarily based on a short-seller report by Spruce Point Capital Management, which was deemed inaccurate. This outcome allows Lightspeed to focus on its upcoming Capital Markets Day, where it will discuss its transformation plan and long-term financial outlook.

Lightspeed to Present at Morgan Stanley Conference

Lightspeed Commerce Inc. announced its participation in the Morgan Stanley Technology, Media & Telecom Conference, where Founder and CEO Dax Dasilva will speak. This participation underscores Lightspeed’s ongoing efforts to engage with investors and stakeholders, potentially enhancing its visibility and influence in the technology and commerce sectors.

Lightspeed Announces Details for Capital Markets Day 2025

Lightspeed Commerce Inc. has announced the details for its Capital Markets Day, scheduled for March 26, 2025, at the New York Stock Exchange. The event will provide insights into the company’s transformation plan, including operational and financial impacts, product updates, and long-term financial outlook, with opportunities for both in-person and virtual attendance.

Lightspeed Initiates Strategic Transformation and Reports Strong Q3 Financials

Lightspeed Commerce Inc. announced the outcomes of its strategic review and third-quarter financial results for 2025, highlighting a transformation plan aimed at maximizing value for shareholders as a public company. The company reported a 17% increase in total revenue to $280.1 million and a positive adjusted EBITDA of $16.6 million. The transformation plan focuses on enhancing its go-to-market strategy and product offerings, particularly in North American retail and European hospitality, while also implementing a $400 million share repurchase program to return capital to shareholders.