Lightspeed POS Inc (LSPD) AI Stock Analysis

• Market Cap: C$2.15B
• Dividend Yield: N/A
• Average Volume (3M): 550.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.52
• Revenue Growth: 17.23%
• EPS Growth: -435.45%
• Country: CA
• Employees: 3,000
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.22
• Shares Outstanding: 135,244,000
• 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$21.36
• Price Target Upside: 16.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: C$20.00 ▲(8.87% Upside)

Lightspeed POS Inc's overall score is driven by strong technical indicators and positive earnings call sentiment, despite challenges in profitability and valuation. The company's strategic advancements and AI-driven growth provide a positive outlook, but financial performance and valuation concerns weigh on the score.

Positive Factors

AI-Driven Innovations

AI-driven innovations enhance Lightspeed's product offerings, improving sales productivity and customer engagement, which can drive long-term growth.

Revenue Growth

Consistent revenue growth indicates strong demand for Lightspeed's offerings, supporting its market position and potential for future expansion.

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility for strategic investments and growth initiatives.

Negative Factors

Profitability Challenges

Ongoing profitability challenges may hinder Lightspeed's ability to reinvest in growth and compete effectively in the long term.

Cash Flow Issues

Negative cash flows can strain financial resources, limiting Lightspeed's ability to fund operations and growth without external financing.

Moderation in Software Growth

A slowdown in software growth could impact revenue momentum and market competitiveness, affecting long-term business prospects.

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

Lightspeed POS Inc shows moderate revenue growth but struggles with profitability and cash flow. The balance sheet is strong with low leverage, yet negative return on equity and cash flow issues indicate areas for improvement.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.12B	1.08B	909.27M	730.51M	548.37M	221.73M
Gross Profit	471.07M	450.20M	385.25M	331.96M	271.17M	127.30M
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 Assets	1.70B	1.83B	2.58B	2.67B	3.62B	2.11B
Cash, Cash Equivalents and Short-Term Investments	447.60M	558.47M	722.10M	800.15M	953.65M	807.15M
Total Debt	16.27M	16.97M	23.21M	25.19M	60.51M	55.45M
Total Liabilities	162.53M	162.24M	162.75M	171.28M	220.69M	171.04M
Stockholders Equity	1.53B	1.66B	2.41B	2.50B	3.40B	1.93B
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	-5.03M	8.04M	25.95M	8.82M	-563.93M	-235.05M
Financing Cash Flow	-216.37M	-138.68M	-6.23M	-35.41M	798.06M	922.32M

Lightspeed POS Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 18.37 is above the 20-day moving average (MA) of 16.72, above the 50-day MA of 16.70, and above the 200-day MA of 16.18, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 60.50 is Neutral, neither overbought nor oversold. The STOCH value of 65.60 is Neutral, 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
KXS	71 Outperform	C$4.72B	136.84	8.24%	―	15.11%	75.40%
ENGH	71 Outperform	$1.15B	15.38	12.56%	6.27%	0.03%	-10.21%
DSG	67 Neutral	$10.38B	50.15	10.54%	―	15.63%	18.47%
OTEX	67 Neutral	$12.80B	19.04	12.32%	2.76%	-5.01%	13.21%
DCBO	65 Neutral	$1.02B	34.83	55.53%	―	18.51%	32.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LSPD	61 Neutral	C$2.15B	-2.48	-37.01%	―	17.23%	-435.45%

Lightspeed POS Inc Corporate Events

Lightspeed’s Earnings Call: Strong Growth and AI Innovations

Lightspeed’s recent earnings call painted a picture of robust financial health and strategic growth, driven by AI innovations and an expanding customer base. Despite some anticipated seasonal fluctuations and a slight moderation in software growth, the overall sentiment was positive, reflecting confidence in the company’s future prospects.

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.

Lightspeed to Announce Q2 2026 Financial Results

Lightspeed Commerce Inc. announced it will release its fiscal second quarter 2026 financial results on November 6, 2025, before the market opens. The company will host a conference call and webcast to discuss these results, providing stakeholders with insights into its financial performance and strategic direction. This announcement is significant for investors and market analysts as it offers a glimpse into the company’s operational health and market positioning.

The most recent analyst rating on (TSE:LSPD) stock is a Hold 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 Strengthens Board with Strategic Appointments for Growth

Lightspeed Commerce Inc. has announced the strategic appointments of Sameer Samat, President of the Android Ecosystem at Google, and Odilon Almeida, a seasoned global fintech leader, to its Board of Directors. These appointments, effective October 1, 2025, are aimed at bolstering Lightspeed’s growth strategy by leveraging Mr. Samat’s product and technology expertise and Mr. Almeida’s extensive industry experience. The appointments are expected to enhance the company’s governance and support its product-led growth and profitability initiatives as it continues to innovate and scale globally.

The most recent analyst rating on (TSE:LSPD) stock is a Hold with a C$17.00 price target. To see the full list of analyst forecasts on Lightspeed POS Inc stock, see the TSE:LSPD Stock Forecast page.