Lightspeed POS Inc (TSE:LSPD)
TSX:LSPD
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Lightspeed POS Inc
(TSX:LSPD)
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Rating:56Neutral
Price Target:
C$13.00
▲(4.50% Upside)
Action:ReiteratedDate:02/07/26
The score is supported primarily by improved cash generation, very low balance-sheet leverage, and constructive earnings-call guidance with better margins/EBITDA trends. Offsetting this, technical indicators remain strongly bearish, and valuation is challenged by ongoing losses (negative P/E) with no dividend support.
Positive Factors
Balance Sheet Strength
Extremely low leverage and a large equity base give durable financial flexibility. This reduces refinancing and solvency risk, enables sustained investment in go-to-market and product, and supports buybacks or opportunistic M&A without pressuring liquidity over the next several quarters.
Negative Factors
Large Ongoing Losses
Persistent, large net losses and very negative margins indicate that operating leverage and cost structure are not yet stabilised. Even with improving cash flow, continued losses threaten shareholder value and require lasting margin gains to convert revenue growth into sustainable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Extremely low leverage and a large equity base give durable financial flexibility. This reduces refinancing and solvency risk, enables sustained investment in go-to-market and product, and supports buybacks or opportunistic M&A without pressuring liquidity over the next several quarters.
Read all positive factors
Lightspeed POS Inc (LSPD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.71B
Dividend YieldN/A
Average Volume (3M)550.64K
Price to Earnings (P/E)―
Beta (1Y)1.61
Revenue Growth17.23%
EPS Growth-435.45%
CountryCA
Employees3,000
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.21
Shares Outstanding137,300,930
10 Day Avg. Volume584,744
30 Day Avg. Volume550,639
Financial Highlights & Ratios
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$16.92Price Target Upside36.01% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)0.68
Revenue Forecast (FY)C$1.35B
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 internation...
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 o...
Lightspeed POS Inc Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 14, 2026
Earnings Call Sentiment Positive
The call presented clear operational momentum: revenue and gross profit beats, accelerated location growth (especially in the targeted growth engines), expanded software ARPU and strong adjusted EBITDA improvement. Management achieved consecutive positive free cash flow and strengthened gross margins—particularly software margins—while continuing to invest aggressively in outbound sales and AI-enabled product innovation. Offsetting items include hardware margin pressure from discounts, moderated software revenue growth due to lapping pricing and a strategic shift to annual contracts (near-term ARPU impact), seasonal Q4 headwinds, and elevated operating investments and share-based comp. On balance, the positive operational trends, margin expansion, and cash-flow improvement appear to meaningfully outweigh the near-term challenges and seasonality noted by management.Positive Updates
Total Revenue and Revenue Beat
Total revenue grew 11% year-over-year to $312.3 million in Q3, exceeding company outlook.
Negative Updates
Moderation in Software Revenue Growth
Software revenue grew 6% year-over-year to $93 million, a moderation attributed to lapping prior year pricing actions and seasonality (including softness in Golf). Front-book SaaS ARPU is being impacted by a strategic shift from monthly to annual contracts (upfront discount), which moderates near-term SaaS revenue recognition despite expected LTV benefits.
Read all updates
Q3-2026 Updates
Positive
Negative
Total Revenue and Revenue Beat
Total revenue grew 11% year-over-year to $312.3 million in Q3, exceeding company outlook.
Read all positive updates
Company Guidance
Lightspeed raised guidance and reaffirmed a profitable-growth trajectory: for fiscal Q4 it expects revenue of approximately $280–284 million, gross profit of about $125–127 million and adjusted EBITDA of roughly $15 million; for fiscal 2026 it now expects revenue of $1.216–1.22 billion, gross profit of $523–525 million and adjusted EBITDA of roughly $72 million. Management noted Q4 is typically the lowest‑GTV quarter (seasonal January–March patterns) but is pulling forward incremental go‑to‑market investment—notably in retail outbound—into Q4 to address stronger demand, reiterated its expectation to generate positive free cash flow for the full fiscal year (after reporting positive FCF in Q3), and highlighted progress on margin targets (adjusted EBITDA was 15% of gross profit in Q3, moving toward a 20% long‑term goal).Lightspeed POS Inc Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
74
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.19B | 1.08B | 909.27M | 730.51M | 548.37M | 221.73M |
| Gross Profit | 473.24M | 450.20M | 385.25M | 331.96M | 271.17M | 127.30M |
| EBITDA | -535.80M | -557.04M | -49.43M | -956.91M | -207.94M | -90.69M |
| Net Income | -692.30M | -667.20M | -163.96M | -1.07B | -288.43M | -124.28M |
Balance Sheet | ||||||
| Total Assets | 1.67B | 1.83B | 2.58B | 2.67B | 3.62B | 2.11B |
| Cash, Cash Equivalents and Short-Term Investments | 479.67M | 558.47M | 722.10M | 800.15M | 953.65M | 807.15M |
| Total Debt | 34.95M | 16.97M | 23.21M | 25.19M | 60.51M | 55.45M |
| Total Liabilities | 173.08M | 162.24M | 162.75M | 171.28M | 220.69M | 171.04M |
| Stockholders Equity | 1.50B | 1.66B | 2.41B | 2.50B | 3.40B | 1.93B |
Cash Flow | ||||||
| Free Cash Flow | 39.92M | -55.88M | -115.85M | -138.41M | -97.87M | -94.86M |
| Operating Cash Flow | 62.69M | -32.76M | -97.67M | -125.28M | -87.22M | -93.06M |
| Investing Cash Flow | -31.12M | 8.04M | 25.95M | 8.82M | -563.93M | -235.05M |
| Financing Cash Flow | -216.40M | -138.68M | -6.23M | -35.41M | 798.06M | 922.32M |
Lightspeed POS Inc Technical Analysis
Neutral
12.44
Price Trends
13.01
Negative
14.73
Negative
15.68
Negative
Market Momentum
-0.25
Negative
48.74
Neutral
62.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LSPD, the sentiment is Neutral. The current price of 12.44 is above the 20-day moving average (MA) of 12.36, below the 50-day MA of 13.01, and below the 200-day MA of 15.68, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 48.74 is Neutral, neither overbought nor oversold. The STOCH value of 62.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | C$8.47B | 38.38 | 10.76% | ― | 14.55% | 15.55% | |
70 Outperform | C$407.49M | 55.29 | 8.57% | 1.07% | 7.00% | 110.62% | |
69 Neutral | C$214.79B | 166.89 | 10.02% | ― | 33.71% | 28.57% | |
69 Neutral | C$3.88B | 49.33 | 16.46% | ― | 15.11% | 75.40% | |
63 Neutral | C$100.25M | 73.32 | 3.03% | ― | 14.05% | -62.16% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | C$1.71B | -12.26 | -37.01% | ― | 17.23% | -435.45% |
* Technology Sector Average
TSE:LSPD
Lightspeed POS Inc
12.44
0.88
7.61%
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-40.32%
Lightspeed POS Inc Corporate Events
Business Operations and StrategyFinancial DisclosuresProduct-Related Announcements
Lightspeed Posts Strong Q3 2026 Results as New AI and Payments Tools Fuel Growth
Positive
Feb 5, 2026
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...
Business Operations and StrategyFinancial Disclosures
Lightspeed Sets February 5 Date for Fiscal Q3 2026 Earnings Release and Conference Call
Neutral
Jan 8, 2026
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 sig...
Financial Disclosures
Lightspeed Sets Date for Fiscal Q3 2026 Results and Investor Call
Neutral
Jan 8, 2026
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 com...
Business Operations and StrategyExecutive/Board Changes
Lightspeed Appoints New CRO to Propel Growth Strategy
Positive
Nov 13, 2025
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, marke...
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.