Lightspeed POS Inc (TSE:LSPD)
TSX:LSPD
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Lightspeed POS Inc
(TSX:LSPD)
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Rating:58Neutral
Price Target:
C$14.00
▲(5.50% Upside)
Action:Reiterated
Date:05/22/26
The score is driven primarily by improving fundamentals (strong balance sheet and newly positive free cash flow) but held back by continued GAAP profitability weakness. Technically, the stock is in a clear downtrend with weak momentum, which materially lowers the overall score. The latest earnings call was constructive with upbeat multi-year targets and improving adjusted profitability, partially offset by margin pressure from hardware discounting and conservative guidance.
Positive Factors
Balance-sheet strength
Very low leverage and a large cash position provide durable financial flexibility: the company can fund growth initiatives, underwrite merchant cash advances, continue strategic buybacks, or withstand cyclical softness without needing urgent external financing, supporting multi‑year execution of targets.
Negative Factors
GAAP profitability still negative
Persistent GAAP losses and negative ROE mean shareholder capital is not yet producing accounting returns. Until net income and ROE sustainably turn positive, the company faces constraints on capital allocation choices and heightened scrutiny over adjusted metrics versus true profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
Very low leverage and a large cash position provide durable financial flexibility: the company can fund growth initiatives, underwrite merchant cash advances, continue strategic buybacks, or withstand cyclical softness without needing urgent external financing, supporting multi‑year execution of targets.
Read all positive factors
Lightspeed POS Inc (LSPD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.83B
Dividend YieldN/A
Average Volume (3M)550.64K
Price to Earnings (P/E)―
Beta (1Y)1.71
Revenue Growth13.25%
EPS Growth77.06%
CountryCA
Employees3,000
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-1.02
Shares Outstanding137,774,860
10 Day Avg. Volume584,744
30 Day Avg. Volume550,639
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)0.84
Price to Sales (P/S)1.02
P/FCF Ratio17.74
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$16.99Price Target Upside28.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)0.61
Revenue Forecast (FY)C$1.26B
Lightspeed POS Inc Business Overview & Revenue Model
Company Description
Lightspeed Commerce Inc. delivers a cloud-based Software as a Service (SaaS) platform designed for small and medium-sized businesses, including retailers, restaurants, and golf course operators, with services extending across Canada, the United St...
How the Company Makes Money
Lightspeed primarily generates revenue through a combination of subscription-based software and transaction-based payments revenue. (1) Subscription / software revenue: Merchants pay recurring fees (typically monthly or annual) for access to Light...
Lightspeed POS Inc Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call communicated strong execution and accelerating momentum in Lightspeed’s prioritized growth engines: revenue and gross profit grew 15% in Q4, adjusted EBITDA and full-year free cash flow turned positive, customer location additions accelerated, payments and capital products are scaling, and AI-driven product adoption is notable. Challenges include moderation in software growth, heavy hardware discounting compressing hardware margins, a Q4 working-capital-driven free cash flow dip, and the structural impact of the Upserve divestiture on historical comparables. Management highlighted disciplined investment, margin expansion levers, and clear multi-year targets while providing conservative near-term guidance to reflect macro uncertainty.Positive Updates
Quarterly Revenue and Gross Profit Growth
Total revenue in Q4 of fiscal 2026 was $290.8M (reported as $291M), up 15% year-over-year; gross profit for the quarter was $129M, also up 15% year-over-year and ahead of prior outlook.
Negative Updates
Moderation in Software Revenue Growth
Software revenue in Q4 was $93.3M, up only 6% year-over-year (9% within growth engines). Management noted moderation driven by lapping last year’s price increases and a shift toward annual contracts (higher quality but lower near-term ARPU).
Read all updates
Q4-2026 Updates
Positive
Negative
Quarterly Revenue and Gross Profit Growth
Total revenue in Q4 of fiscal 2026 was $290.8M (reported as $291M), up 15% year-over-year; gross profit for the quarter was $129M, also up 15% year-over-year and ahead of prior outlook.
Read all positive updates
Company Guidance
Lightspeed guided fiscal 2027 consolidated revenue of $1.225–$1.265 billion (organic growth 12–15%), total gross profit of $565–$585 million (organic growth 12–16%) and adjusted EBITDA of $75–$95 million; Q1 FY27 guidance is revenue $305–$350M (organic 10–14%), gross profit $136–$141M (organic 10–14%) and adjusted EBITDA $15–$20M. The company reiterated its multi‑year targets (FY25–FY28) with consolidated gross‑profit CAGR target of 15–18% intact (now reported excluding the Upserve divestiture), growth‑engine gross‑profit CAGR of 20–25% and locations CAGR of 10–15%, expects growth engines to comprise ~75% of revenue today and to approach ~80% in FY27, and sees FY28 gross profit (post‑Upserve) of ~$665–$685M (vs $700M prior), gross margins of 43–46% (vs 42–45% prior), adjusted EBITDA of ~20% of gross profit by FY28, and adjusted free cash flow for FY28 of ~ $95M (vs $100M prior); excluding Upserve, adjusted EBITDA CAGR for FY25–28 is now >50%. Management anchored this outlook to FY26 results and growth signals including Q4 revenue ~$291M and gross profit ~$129M (both +15% YoY), Q4 adjusted EBITDA $15.1M (+17% YoY), FY26 adjusted EBITDA $72.5M (+35% YoY), positive adjusted free cash flow $18.2M, ~150,000 total locations after ~3,200 Q4 net adds and ~9,400 FY net adds (+11% YoY), total monthly ARPU ≈ $602 (+10% YoY), payments penetration ~42% company‑wide (46% in growth engines), strong GTV and Lightspeed Capital growth trends, and continued investment in outbound sales and AI‑driven product initiatives.Lightspeed POS Inc Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
79
Positive
Cash Flow
68
Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.22B | 1.08B | 909.27M | 730.51M | 548.37M |
| Gross Profit | 372.80M | 450.20M | 385.25M | 331.96M | 271.17M |
| EBITDA | 3.15M | -557.04M | -49.43M | -956.91M | -207.94M |
| Net Income | -143.12M | -667.20M | -163.96M | -1.07B | -288.43M |
Balance Sheet | |||||
| Total Assets | 1.67B | 1.83B | 2.58B | 2.67B | 3.62B |
| Cash, Cash Equivalents and Short-Term Investments | 455.76M | 558.47M | 722.10M | 800.15M | 953.65M |
| Total Debt | 20.18M | 16.97M | 23.21M | 25.19M | 60.51M |
| Total Liabilities | 182.20M | 162.24M | 162.75M | 171.28M | 220.69M |
| Stockholders Equity | 1.48B | 1.66B | 2.41B | 2.50B | 3.40B |
Cash Flow | |||||
| Free Cash Flow | 70.17M | -55.88M | -115.85M | -138.41M | -97.87M |
| Operating Cash Flow | 76.67M | -32.76M | -97.67M | -125.28M | -87.22M |
| Investing Cash Flow | -59.02M | 8.04M | 25.95M | 8.82M | -563.93M |
| Financing Cash Flow | -122.55M | -138.68M | -6.23M | -35.41M | 798.06M |
Lightspeed POS Inc Technical Analysis
Positive
13.27
Price Trends
12.84
Positive
12.75
Positive
14.63
Negative
Market Momentum
0.19
Positive
54.29
Neutral
28.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LSPD, the sentiment is Positive. The current price of 13.27 is above the 20-day moving average (MA) of 13.11, above the 50-day MA of 12.84, and below the 200-day MA of 14.63, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 54.29 is Neutral, neither overbought nor oversold. The STOCH value of 28.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LSPD.
Lightspeed POS Inc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | C$4.00B | 34.24 | 19.72% | ― | 16.06% | 744.14% | |
75 Outperform | C$8.46B | 32.68 | 11.26% | ― | 11.62% | 19.63% | |
70 Outperform | C$196.70B | 106.51 | 10.52% | ― | 30.85% | -15.81% | |
70 Outperform | C$517.70M | 86.93 | 8.57% | 1.07% | 9.33% | 98.43% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | C$84.93M | -298.98 | -0.47% | ― | 6.79% | -119.91% | |
58 Neutral | C$1.83B | -9.05 | -9.59% | ― | 13.25% | 77.06% |
* Technology Sector Average
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Lightspeed POS Inc Corporate Events
Financial Disclosures
Lightspeed Sets Date for Fiscal 2026 Results and Investor Call
Neutral
Apr 9, 2026
Lightspeed Commerce Inc., a Montréal-headquartered POS and payments technology provider, serves retail, golf, and hospitality operators in over 100 countries with a unified omnichannel platform. The company, listed on both the NYSE and TSX un...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.