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Lightspeed Pos (TSE:LSPD)
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Lightspeed POS Inc (LSPD) AI Stock Analysis

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TSE:LSPD

Lightspeed POS Inc

(TSX:LSPD)

Rating:53Neutral
Price Target:
C$17.00
▲(0.89% Upside)
The overall score reflects moderate financial performance with significant profitability and cash flow challenges. Technical indicators are neutral, and valuation is weak due to negative earnings. Positive earnings call sentiment and supportive corporate events provide some optimism, but the stock faces competitive pressures and growth challenges.
Positive Factors
Revenue Growth
Revenue growth has potential to accelerate as the go-to-market strategy ramps, which could be a catalyst.
Sales Strategy
March was a record outbound sales month, showing encouraging progress in its sales capacity.
Tech Investments
Tech investments to drive ARPU growth are paying off, with a 10% increase in software ARPU and 16% increase in total ARPU.
Negative Factors
Macro Pressures
Macro pressures in its end-markets create uncertainty, impacting the company's guidance posture.
Market Share
Little evidence of market share gains today means these targets are aspirational at best and likely viewed by the market as unrealistic.
Transparency
Lack of transparency hurts the story – the promise of annual location disclosures is not enough for investors looking to track quarterly progress.

Lightspeed POS Inc (LSPD) vs. iShares MSCI Canada ETF (EWC)

Lightspeed POS Inc Business Overview & Revenue Model

Company DescriptionLightspeed POS Inc (LSPD) is a prominent technology company that provides point-of-sale and e-commerce software solutions for small and medium-sized businesses, primarily in the retail, hospitality, and golf industries. The company's comprehensive platform integrates inventory management, payment processing, customer engagement, and analytics, enabling businesses to streamline operations and enhance customer experiences.
How the Company Makes MoneyLightspeed 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 Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q1-2026)
|
% Change Since: -7.42%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook, with strong revenue and profit growth, enhanced payments penetration, and strategic customer wins. However, challenges in accelerating software revenue and competitive pressures were noted. The company is executing well on its strategic focus and profitability improvements.
Q1-2026 Updates
Positive Updates
Strong Revenue and Profit Growth
Revenue of $305 million increased 15% year-over-year, exceeding the high end of the outlook, while gross profit increased 19% year-over-year.
Improved Payments Penetration
Payments penetration reached 41%, up from 36% in the same quarter last year, contributing to a gross payments volume growth of 21%.
Significant Increase in Adjusted EBITDA
Adjusted EBITDA came in at $16 million, up 55% year-over-year, indicating a strong profitability improvement.
Customer Location Growth
Added approximately 1,700 net new customer locations, with total growth engine locations up 5% year-over-year.
Expansion in High-Value Markets
Achieved notable customer wins in key markets, such as Neiman Marcus, Bergdorf Goodman, and prestigious hospitality locations in Europe.
Innovative Product Developments
Launched several new products and features including AI-powered tools in both retail and hospitality, driving ARPU growth.
Increased Shareholder Returns
Completed fiscal 2026 normal course issuer bid of approximately 9 million shares, returning $85 million to shareholders.
Negative Updates
Software Revenue Growth Challenges
Software revenue grew 9% year-over-year, which although positive, indicates a moderate growth pace compared to transaction-based revenue.
Continued Competitive Pressure
Facing increased competition in key markets, which may impact cost of growth and require strategic adjustments.
Company Guidance
During the Lightspeed First Quarter 2026 Earnings Call, the company reported several key metrics and guidance. Revenue for Q1 reached $305 million, marking a 15% increase year-over-year, surpassing the high end of their outlook. Gross profit was $129 million, up 19%, also exceeding expectations. Payments penetration increased to 41%, from 36% in the previous year. Adjusted EBITDA was reported at $16 million, a 55% increase year-over-year. The company added about 1,700 net new customer locations within its growth engines, with total growth engine locations up 5% year-over-year. Total locations at the end of the quarter were approximately 145,000. For fiscal 2026, Lightspeed maintains its revenue growth guidance of 10% to 12% year-over-year, with gross profit expected to grow by approximately 14% and adjusted EBITDA to be between $68 million and $72 million.

Lightspeed POS Inc Financial Statement Overview

Summary
Lightspeed POS Inc shows moderate revenue growth but struggles with profitability and cash flow. The strong balance sheet with low leverage is a positive, but negative return on equity and cash flow issues are concerning.
Income Statement
45
Neutral
Lightspeed POS Inc has shown moderate revenue growth with a TTM growth rate of 3.61%. However, the company is struggling with profitability, as indicated by negative net profit and EBIT margins. The gross profit margin has decreased slightly from the previous year, reflecting potential cost management issues.
Balance Sheet
55
Neutral
The company maintains a strong equity position with a low debt-to-equity ratio of 0.01, indicating low financial leverage. However, the return on equity is negative, suggesting inefficiencies in generating returns from shareholders' equity.
Cash Flow
40
Negative
Cash flow metrics indicate challenges, with negative operating and free cash flows. The free cash flow growth rate is negative, and the free cash flow to net income ratio is significantly high, reflecting cash flow issues despite net losses.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.12B1.08B909.27M730.51M548.37M221.73M
Gross Profit471.07M450.20M385.25M331.96M271.17M127.30M
EBITDA-548.44M-557.04M-49.43M-956.91M-207.94M-90.69M
Net Income-681.75M-667.20M-163.96M-1.07B-288.43M-124.28M
Balance Sheet
Total Assets1.70B1.83B2.58B2.67B3.62B2.11B
Cash, Cash Equivalents and Short-Term Investments447.60M558.47M722.10M800.15M953.65M807.15M
Total Debt16.27M16.97M23.21M25.19M60.51M55.45M
Total Liabilities162.53M162.24M162.75M171.28M220.69M171.04M
Stockholders Equity1.53B1.66B2.41B2.50B3.40B1.93B
Cash Flow
Free Cash Flow-37.46M-55.88M-115.85M-138.41M-97.87M-94.86M
Operating Cash Flow-6.13M-32.76M-97.67M-125.28M-87.22M-93.06M
Investing Cash Flow-5.03M8.04M25.95M8.82M-563.93M-235.05M
Financing Cash Flow-216.37M-138.68M-6.23M-35.41M798.06M922.32M

Lightspeed POS Inc Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price16.85
Price Trends
50DMA
16.45
Positive
100DMA
15.05
Positive
200DMA
18.08
Negative
Market Momentum
MACD
0.08
Positive
RSI
48.87
Neutral
STOCH
23.81
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 16.85 is below the 20-day moving average (MA) of 17.46, above the 50-day MA of 16.45, and below the 200-day MA of 18.08, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 48.87 is Neutral, neither overbought nor oversold. The STOCH value of 23.81 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$10.33B17.6210.73%3.40%-7.77%-1.03%
75
Outperform
$1.29B44.7555.53%18.51%32.49%
71
Outperform
$1.23B15.7413.26%5.88%5.12%-2.77%
71
Outperform
C$5.55B159.985.93%15.81%22.17%
68
Neutral
¥241.21B15.466.62%2.44%9.23%1.77%
66
Neutral
$11.75B59.2210.66%17.42%22.81%
53
Neutral
C$2.28B-36.64%18.75%-386.84%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:LSPD
Lightspeed POS Inc
16.85
-1.46
-7.97%
TSE:ENGH
Enghouse Systems
22.36
-5.84
-20.70%
TSE:DSG
The Descartes Systems Group
135.18
-1.00
-0.73%
TSE:OTEX
Open Text
42.87
0.77
1.83%
TSE:DCBO
Docebo
43.22
-14.45
-25.06%
TSE:KXS
Kinaxis Inc
196.50
42.67
27.74%

Lightspeed POS Inc Corporate Events

Shareholder MeetingsBusiness Operations and Strategy
Lightspeed Secures Shareholder Approval for Key Business Resolutions
Positive
Aug 1, 2025

Lightspeed Commerce Inc. announced that all items of business presented at its annual shareholders meeting were approved, including the election of directors, appointment of auditors, and an advisory vote on executive compensation. The approval of these items reflects strong shareholder support and may positively impact the company’s governance and operational strategies.

The most recent analyst rating on (TSE:LSPD) stock is a Buy with a C$23.00 price target. To see the full list of analyst forecasts on Lightspeed POS Inc stock, see the TSE:LSPD Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Lightspeed Commerce Inc. Reports Strong First Quarter 2026 Financial Results
Positive
Jul 31, 2025

Lightspeed Commerce Inc. reported a strong start to the fiscal year with a 15% year-over-year revenue increase to $304.9 million, surpassing expectations. The company also saw a 19% rise in gross profit and a 21% growth in Gross Payment Volume (GPV). Key operational highlights include the addition of approximately 1,700 new customer locations and several product innovations aimed at enhancing inventory tracking, customer service, and sales insights. Despite a net loss, the company’s adjusted EBITDA improved, reflecting operational efficiency and strategic investments in growth.

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.

Financial Disclosures
Lightspeed to Announce Q1 2026 Financial Results on July 31, 2025
Neutral
Jul 10, 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.

Executive/Board ChangesBusiness Operations and Strategy
Lightspeed Commerce Strengthens Board with New Appointment
Positive
Jun 27, 2025

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.

Legal ProceedingsBusiness Operations and Strategy
Lightspeed Commerce Settles Quebec Class Action Lawsuit
Neutral
Jun 17, 2025

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.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Lightspeed Commerce Surpasses $1 Billion in Revenue Amid Strategic Growth
Positive
May 22, 2025

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.

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.Date of analysis: Aug 08, 2025