Lightspeed POS Inc (LSPD) AI Stock Analysis

• Market Cap: C$1.87B
• Dividend Yield: N/A
• Average Volume (3M): 550.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.12
• Revenue Growth: 17.23%
• EPS Growth: -435.45%
• Country: CA
• Employees: 3,000
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.21
• Shares Outstanding: 135,983,630
• 10 Day Avg. Volume: 584,744
• 30 Day Avg. Volume: 550,639
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 1.25
• P/FCF Ratio: -24.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$21.17
• Price Target Upside: 53.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: C$14.00 ▲(1.67% Upside)

The score is held back primarily by weak financial performance (continued profitability and cash-flow conversion challenges) and bearish technicals (downtrend with negative MACD). These are partly offset by a constructive earnings call with raised guidance, improving EBITDA, and reported positive free cash flow, while valuation is difficult to assess due to negative earnings and no dividend.

Positive Factors

Payments & Transaction Growth

A material and growing transaction revenue stream diversifies recurring SaaS income with usage-linked economics. Higher GPV and transaction revenue scale with merchant sales, increasing lifetime monetization potential and creating durable revenue linkage to customer success and network effects.

High & Improving Software Margins

Very high software margins and recent expansion indicate strong operating leverage in the cloud product stack. Sustainable software margin strength supports long‑term profitability as SaaS revenue scales, enabling reinvestment in product and go‑to‑market while preserving gross profit.

Improving Cash Generation & Balance Sheet Flexibility

Consecutive positive free cash flow and a sizable cash balance improve liquidity and optionality, enabling disciplined buybacks, M&A, or go‑to‑market investment without relying on external funding. This reduces execution risk and supports multi‑quarter strategic initiatives.

Negative Factors

Persistent GAAP Profitability Shortfall

Ongoing negative net income and EBIT margins signal the company has not yet converted top‑line growth into consistent GAAP profitability. This structural profit shortfall constrains retained earnings, investor flexibility, and long‑term ROE without sustained margin expansion or revenue acceleration.

Weak Cash Conversion Metrics

Poor operating cash conversion raises the risk that reported revenue and adjusted profits do not readily convert to cash. This structural cashflow weakness can limit reinvestment capacity, increase sensitivity to funding needs, and magnify downside if growth or margins slip.

Hardware Margin Pressure

Deep discounts on hardware to drive adoption create a lasting drag on blended gross margins because hardware unit losses offset high software margins. If payments/hardware incentives continue, blended profitability and free cash flow sustainability remain vulnerable despite software strength.

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 generates revenue primarily through subscription fees for its POS software and services, which are offered on a monthly or annual basis. The company also earns income from payment processing fees, which are charged as a percentage of each transaction processed through its platform. Additional revenue streams include hardware sales, such as POS terminals and peripherals, and professional services, which encompass installation, training, and customer support. Strategic partnerships with payment processors and other technology providers further enhance its service offerings and contribute to its revenue growth.

Lightspeed POS Inc Financial Statement Overview

Summary

Revenue is growing modestly (3.75% TTM), but profitability remains weak with negative net profit and EBIT margins and a declining gross margin trend. While leverage is conservative (low debt-to-equity), return on equity is negative and cash conversion is a key issue, with weak operating cash flow vs. net income and negative free-cash-flow growth.

Income Statement

Lightspeed POS Inc. shows a modest revenue growth rate of 3.75% TTM, indicating some positive momentum. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin has declined over time, suggesting increased cost pressures or pricing challenges.

Balance Sheet

The company maintains a low debt-to-equity ratio, reflecting conservative leverage. However, the return on equity is negative, indicating that the company is not generating profits from its equity base. The equity ratio is stable, suggesting a solid capital structure despite profitability challenges.

Cash Flow

Cash flow metrics reveal significant challenges, with a negative free cash flow growth rate and a very low operating cash flow to net income ratio. This indicates difficulties in converting revenue into cash, which could impact liquidity if not addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.16B	1.08B	909.27M	730.51M	548.37M	221.73M
Gross Profit	491.95M	450.20M	385.25M	331.96M	271.17M	127.30M
EBITDA	-541.36M	-557.04M	-49.43M	-956.91M	-207.94M	-90.69M
Net Income	-684.80M	-667.20M	-163.96M	-1.07B	-288.43M	-124.28M
Balance Sheet
Total Assets	1.68B	1.83B	2.58B	2.67B	3.62B	2.11B
Cash, Cash Equivalents and Short-Term Investments	463.64M	558.47M	722.10M	800.15M	953.65M	807.15M
Total Debt	17.47M	16.97M	23.21M	25.19M	60.51M	55.45M
Total Liabilities	162.46M	162.24M	162.75M	171.28M	220.69M	171.04M
Stockholders Equity	1.52B	1.66B	2.41B	2.50B	3.40B	1.93B
Cash Flow
Free Cash Flow	3.58M	-55.88M	-115.85M	-138.41M	-97.87M	-94.86M
Operating Cash Flow	30.72M	-32.76M	-97.67M	-125.28M	-87.22M	-93.06M
Investing Cash Flow	-11.91M	8.04M	25.95M	8.82M	-563.93M	-235.05M
Financing Cash Flow	-215.82M	-138.68M	-6.23M	-35.41M	798.06M	922.32M

Lightspeed POS Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 13.77 is below the 20-day moving average (MA) of 15.63, below the 50-day MA of 16.03, and below the 200-day MA of 16.09, indicating a bearish trend. The MACD of -0.61 indicates Positive momentum. The RSI at 27.72 is Positive, neither overbought nor oversold. The STOCH value of 10.46 is Positive, 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
SHOP	77 Outperform	C$204.53B	83.53	15.74%	―	33.71%	28.57%
DSG	72 Outperform	C$7.87B	36.80	10.70%	―	14.55%	15.55%
KXS	67 Neutral	C$3.35B	69.65	8.24%	―	15.11%	75.40%
THNC	65 Neutral	C$133.32M	350.00	0.65%	―	14.05%	-62.16%
TCS	63 Neutral	C$359.99M	65.71	8.14%	1.07%	7.00%	110.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LSPD	51 Neutral	C$1.87B	-2.12	-37.01%	―	17.23%	-435.45%

Lightspeed POS Inc Corporate Events

Lightspeed Posts Strong Q3 2026 Results as New AI and Payments Tools Fuel Growth

Lightspeed reported third quarter 2026 revenue of $312.3 million, up 11% year over year and ahead of guidance, with gross profit rising 15% and margins improving to 43%. Transaction-based and subscription revenues both grew, while net loss widened to $33.6 million, though the company delivered positive adjusted income, higher adjusted EBITDA and significantly stronger operating and free cash flows, ending the quarter with $479 million in cash. Operationally, Lightspeed rolled out a series of new products and enhancements, including Lightspeed AI, a revamped retail Marketplace, Tap to Pay on Android, smart terminals, and new restaurant tools such as Lightspeed Tempo, Tasks, Reservations and expanded Mobile Tap in key European markets. These launches, together with strong performance in its core “growth engines” of North American retail and European hospitality—where revenue and gross transaction volume accelerated and roughly 2,600 net customer locations were added—underscore the company’s ongoing transformation toward higher-margin, scalable growth and improved profitability.

The most recent analyst rating on (TSE:LSPD) stock is a Hold with a C$13.50 price target. To see the full list of analyst forecasts on Lightspeed POS Inc stock, see the TSE:LSPD Stock Forecast page.

Lightspeed Sets February 5 Date for Fiscal Q3 2026 Earnings Release and Conference Call

Lightspeed Commerce Inc. will release its fiscal third quarter 2026 financial results before markets open on Thursday, February 5, 2026, followed by a management-hosted conference call and webcast at 8:00 a.m. ET the same day. The announcement signals an upcoming update on the company’s operating performance and strategy execution, giving investors and other stakeholders a scheduled opportunity to assess Lightspeed’s progress in its core retail and hospitality markets and its positioning within the competitive global commerce technology landscape.

The most recent analyst rating on (TSE:LSPD) stock is a Hold with a C$16.50 price target. To see the full list of analyst forecasts on Lightspeed POS Inc stock, see the TSE:LSPD Stock Forecast page.

Lightspeed Sets Date for Fiscal Q3 2026 Results and Investor Call

Lightspeed Commerce Inc. announced it will release its fiscal third quarter 2026 financial results before markets open on Thursday, February 5, 2026, followed by a management-hosted conference call and webcast at 8:00 a.m. ET the same day. The company is providing advance registration for investors to access the telephonic call and a replay service through February 12, 2026, underscoring its efforts to maintain transparent communication with shareholders and the broader market ahead of a key financial update that could offer insight into its performance and strategic momentum in the retail and hospitality technology space.

The most recent analyst rating on (TSE:LSPD) stock is a Hold with a C$16.50 price target. To see the full list of analyst forecasts on Lightspeed POS Inc stock, see the TSE:LSPD Stock Forecast page.

Lightspeed Appoints New CRO to Propel Growth Strategy

Lightspeed Commerce Inc. has appointed Gabriel Benavides as Chief Revenue Officer to drive its strategy for sustained, profitable growth. Benavides, with over 20 years of experience in global revenue leadership, will focus on aligning sales, marketing, and partnerships to enhance the company’s market execution and revenue growth. This leadership change comes as Lightspeed aims to strengthen its go-to-market strategies and deepen customer relationships, following a period of strong financial performance. Additionally, President JD Saint-Martin will step down, marking a transition in leadership that underscores Lightspeed’s commitment to operational excellence and sustainable growth.

The most recent analyst rating on (TSE:LSPD) stock is a Buy with a C$16.00 price target. To see the full list of analyst forecasts on Lightspeed POS Inc stock, see the TSE:LSPD Stock Forecast page.

Lightspeed Reports Strong Q2 2026 Results and Raises Fiscal Outlook

Lightspeed Commerce Inc. reported strong financial results for the second quarter of 2026, with a 15% year-over-year revenue increase to $319 million, and an 18% rise in gross profit. The company also achieved positive cash flow from operating activities and improved its Adjusted EBITDA. Lightspeed’s strategic focus on AI-driven innovation and market expansion in North America and Europe has led to significant growth in customer locations and software revenue, reinforcing its industry position.

The most recent analyst rating on (TSE:LSPD) stock is a Hold with a C$16.50 price target. To see the full list of analyst forecasts on Lightspeed POS Inc stock, see the TSE:LSPD Stock Forecast page.