Lightspeed POS Inc (LSPD) AI Stock Analysis

• Market Cap: C$2.46B
• Dividend Yield: N/A
• Average Volume (3M): 474.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.18
• Revenue Growth: 22.09%
• EPS Growth: -334.14%
• Country: CA
• Employees: 3,000
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): 0.14
• Shares Outstanding: 137,386,830
• 10 Day Avg. Volume: 445,525
• 30 Day Avg. Volume: 474,249
• PEG Ratio: <0.01
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -28.59
• Enterprise Value/Market Cap: 0.43
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 2.35
• Enterprise Value/Ebitda: -1.67
• 1Y Price Target: C$18.16
• Price Target Upside: 1.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 62 Neutral
• Price Target: C$19.00 ▲(6.09%Upside)

Lightspeed's stock score is driven by its strong revenue growth and market momentum, but offset by ongoing financial losses and valuation concerns. The positive outlook from the earnings call and strategic initiatives are notable strengths, yet the financial performance remains a critical risk.

Positive Factors

Innovation Investment

Investing 35% more in innovation for FY26 is expected to drive platform differentiation and competitiveness.

Sales Performance

March was a record outbound sales month, showing encouraging progress in its sales capacity.

Negative Factors

Market Guidance

Macro pressures in its end-markets create uncertainty, impacting the company's guidance posture.

Market Share Ambitions

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

Payment Penetration

Payments penetration of 38.3% was below management's target of 40%+.

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 primarily through subscription fees for its software-as-a-service (SaaS) platform, which businesses pay to access its suite of tools and services. The company also earns money from transaction-based fees on payments processed through its platform, providing a dual revenue stream. Additionally, Lightspeed offers value-added services, such as hardware sales and implementation support, which contribute to its earnings. Strategic partnerships with financial institutions and third-party service providers further enhance its capability to offer comprehensive solutions, driving customer acquisition and retention.

Lightspeed POS Inc Financial Statement Overview

Summary

While Lightspeed has demonstrated revenue growth, the persistently negative EBIT and net profit margins indicate operational inefficiencies. The strong equity position and low leverage are positives, but the negative cash flows and inability to generate positive net income raise concerns about long-term financial health.

Income Statement

The company has shown significant revenue growth over the years, with a 19% increase from 2024 to 2025. However, the persistently negative EBIT and net profit margins indicate ongoing operational inefficiencies and challenges in achieving profitability. Despite the growth trajectory, the consistent losses pose a risk to financial stability.

Balance Sheet

Lightspeed POS Inc maintains a strong equity position, with an equity ratio of 91% as of 2025, indicating financial stability. The debt-to-equity ratio is low, highlighting minimal leverage risk. However, the reduction in stockholders' equity over the years suggests potential concerns about asset quality or capital management.

Cash Flow

The company's free cash flow remains negative, though it has improved slightly from the previous year. The operating cash flow to net income ratio is unfavorable, reflecting challenges in converting revenue into cash. This cash flow situation may limit the company's ability to invest in growth or handle financial shocks.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.08B	909.27M	730.51M	548.37M	221.73M
Gross Profit	450.20M	385.25M	331.96M	271.17M	127.30M
EBITDA	-557.04M	-49.43M	-956.91M	-207.94M	-90.69M
Net Income	-667.20M	-163.96M	-1.07B	-288.43M	-124.28M
Balance Sheet
Total Assets	1.83B	2.58B	2.67B	3.62B	2.11B
Cash, Cash Equivalents and Short-Term Investments	558.47M	722.10M	800.15M	953.65M	807.15M
Total Debt	16.97M	23.21M	25.19M	60.51M	55.45M
Total Liabilities	162.24M	162.75M	171.28M	220.69M	171.04M
Stockholders Equity	1.66B	2.41B	2.50B	3.40B	1.93B
Cash Flow
Free Cash Flow	-55.88M	-115.85M	-138.41M	-97.87M	-94.86M
Operating Cash Flow	-32.76M	-97.67M	-125.28M	-87.22M	-93.06M
Investing Cash Flow	8.04M	25.95M	8.82M	-563.93M	-235.05M
Financing Cash Flow	-138.68M	-6.23M	-35.41M	798.06M	922.32M

Lightspeed POS Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 17.91 is above the 20-day moving average (MA) of 16.50, above the 50-day MA of 15.72, and below the 200-day MA of 18.36, indicating a neutral trend. The MACD of 0.63 indicates Negative momentum. The RSI at 72.27 is Negative, neither overbought nor oversold. The STOCH value of 90.76 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	¥234.20B	14.80	7.50%	2.60%	9.27%	6.74%
LSPD	62 Neutral	C$2.46B	―	-33.64%	―	22.09%	-334.14%
OTEX	―	$7.82B	12.35	15.87%	3.48%	―	―
DSGX	―	$9.12B	64.26	10.66%	―	―	―
KXS	74 Outperform	C$5.74B	412.74	2.32%	―	15.14%	-31.45%
EGHSF	―	$952.11M	17.13	13.26%	0.23%	―	―
DCBO	―	$928.84M	41.20	41.12%	―	―	―

Lightspeed POS Inc Corporate Events

Lightspeed to Announce Q1 2026 Financial Results on July 31, 2025

Lightspeed Commerce Inc. announced it will release its fiscal first quarter 2026 financial results on July 31, 2025, before the market opens. A conference call and webcast will follow to discuss the results, providing insights into the company’s financial performance and strategic direction. This announcement is significant for stakeholders as it offers a detailed look at Lightspeed’s operational health and market positioning, potentially impacting investor confidence and market perception.

The most recent analyst rating on (TSE:LSPD) stock is a Buy with a C$29.00 price target. To see the full list of analyst forecasts on Lightspeed POS Inc stock, see the TSE:LSPD Stock Forecast page.

Lightspeed Commerce Strengthens Board with New Appointment

Lightspeed Commerce Inc. has appointed Glen LeBlanc to its Board of Directors, effective July 1, 2025. LeBlanc, with over 30 years of experience in financial leadership within the telecommunications and technology sectors, will also join the Audit and Risk Committees. His expertise is expected to support Lightspeed’s ongoing transformation and growth strategy, as the company continues to innovate and strengthen its market position. The appointment follows the decision of Paul McFeeters not to seek re-election, marking a strategic shift in the company’s leadership.

The most recent analyst rating on (TSE:LSPD) stock is a Buy with a C$29.00 price target. To see the full list of analyst forecasts on Lightspeed POS Inc stock, see the TSE:LSPD Stock Forecast page.

Lightspeed Commerce Settles Quebec Class Action Lawsuit

Lightspeed Commerce Inc. announced a settlement agreement to resolve a class action lawsuit filed in Quebec, following the dismissal of a similar case in the U.S. The settlement, pending approval by the Superior Court of Quebec, involves a payment of approximately $8.09 million, with no admission of liability by Lightspeed. This resolution allows Lightspeed to focus on its strategic growth and transformation goals, aiming to enhance its market position and deliver exceptional customer experiences.

The most recent analyst rating on (TSE:LSPD) stock is a Buy with a C$29.00 price target. To see the full list of analyst forecasts on Lightspeed POS Inc stock, see the TSE:LSPD Stock Forecast page.

Lightspeed Commerce Surpasses $1 Billion in Revenue Amid Strategic Growth

Lightspeed Commerce Inc. reported a significant revenue growth of 18% for the fiscal year 2025, surpassing $1 billion for the first time. The company also improved its gross margin to 44% and strategically repurchased 12% of its shares. Despite a net loss due to a goodwill impairment charge, Lightspeed achieved an adjusted income of $69.5 million and improved its Adjusted EBITDA. The company plans to expand its market presence and enhance profitability in fiscal 2026, focusing on growing locations and software revenue.

The most recent analyst rating on (TSE:LSPD) stock is a Buy with a C$29.00 price target. To see the full list of analyst forecasts on Lightspeed POS Inc stock, see the TSE:LSPD Stock Forecast page.