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

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TSE:LSPD

Lightspeed POS Inc

(TSX:LSPD)

Rating:62Neutral
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 (LSPD) vs. iShares MSCI Canada ETF (EWC)

Lightspeed POS Inc Business Overview & Revenue Model

Company DescriptionLightspeed 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 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:May 22, 2025
(Q4-2025)
|
% Change Since: 19.96%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call revealed significant achievements in revenue growth, profitability, and strategic execution, including a major milestone of surpassing $1 billion in annual revenue. However, challenges such as macroeconomic headwinds impacting same-store sales and a significant goodwill impairment charge were noted. Despite these challenges, the company's strategic focus and investments in product innovation provide a positive outlook.
Q4-2025 Updates
Positive Updates
Record-Breaking Revenue Milestone
Lightspeed exceeded $1 billion in annual revenue for the first time, achieving an 18% year-over-year growth.
Substantial Growth in Adjusted EBITDA
Adjusted EBITDA increased from $1.3 million to $53.7 million, demonstrating improved profitability.
Successful Share Repurchase Program
Lightspeed repurchased approximately 18.7 million shares, returning $219 million to investors.
Increase in Software ARPU
Software ARPU grew 11% year-over-year, reflecting strong adoption of new modules and price optimization.
Expansion in Product Innovation
Investment in product development increased by 35%, leading to new product features and enhanced customer solutions.
Negative Updates
Same-Store Sales Softness
Macro headwinds impacted same-store sales, particularly in North American hospitality, affecting transaction-based revenue.
Goodwill Impairment Charge
A $556 million goodwill impairment charge was recorded due to volatility in technology valuations and share price.
Lower Gross Payments Volume Penetration
GPV as a percentage of GTV remained flat at 38% in Q4, with expectations for slow improvement.
Company Guidance
During the Lightspeed Fourth Quarter 2025 Earnings Call, the company provided comprehensive guidance, highlighting several key metrics and strategic initiatives. Lightspeed reported surpassing $1 billion in annual revenue for the first time, with revenue growth of 18% and a substantial increase in adjusted EBITDA from $1.3 million to $53.7 million. The company completed a share repurchase program, buying back approximately 18.7 million shares, representing 12% of outstanding shares, for $219 million. In Q4, software ARPU grew 11% year-over-year, and gross margin reached 44%, driven by disciplined cost management. Lightspeed also outlined its strategy focusing on North American retail and European hospitality markets, aiming for a three-year CAGR of 10% to 15% in customer locations. The company plans to increase product development investment by 35% in fiscal 2026 and expects total revenue growth of 10% to 12% year-over-year, with total adjusted EBITDA projected between $68 million and $72 million.

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
45
Neutral
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
55
Neutral
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
40
Negative
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.08B909.27M730.51M548.37M221.73M
Gross Profit450.20M385.25M331.96M271.17M127.30M
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 Assets1.83B2.58B2.67B3.62B2.11B
Cash, Cash Equivalents and Short-Term Investments558.47M722.10M800.15M953.65M807.15M
Total Debt16.97M23.21M25.19M60.51M55.45M
Total Liabilities162.24M162.75M171.28M220.69M171.04M
Stockholders Equity1.66B2.41B2.50B3.40B1.93B
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 Flow8.04M25.95M8.82M-563.93M-235.05M
Financing Cash Flow-138.68M-6.23M-35.41M798.06M922.32M

Lightspeed POS Inc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price17.91
Price Trends
50DMA
15.72
Positive
100DMA
14.81
Positive
200DMA
18.36
Negative
Market Momentum
MACD
0.63
Negative
RSI
72.27
Negative
STOCH
90.76
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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
¥234.20B14.807.50%2.60%9.27%6.74%
62
Neutral
C$2.46B-33.64%22.09%-334.14%
$7.82B12.3515.87%3.48%
$9.12B64.2610.66%
74
Outperform
C$5.74B412.742.32%15.14%-31.45%
$952.11M17.1313.26%0.23%
$928.84M41.2041.12%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:LSPD
Lightspeed POS Inc
17.91
-0.53
-2.87%
OTEX
Open Text
30.21
-0.17
-0.56%
DSGX
The Descartes Systems Group
106.45
5.96
5.93%
TSE:KXS
Kinaxis Inc
204.30
34.89
20.60%
EGHSF
Enghouse Systems
17.25
-3.78
-17.97%
DCBO
Docebo
31.38
-6.88
-17.98%

Lightspeed POS Inc Corporate Events

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: Jul 23, 2025