Lightspeed POS Inc (LSPD) AI Stock Analysis

• Market Cap: C$1.78B
• Dividend Yield: N/A
• Average Volume (3M): 550.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.91
• Revenue Growth: 17.23%
• EPS Growth: -435.45%
• Country: CA
• Employees: 3,000
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.20
• Shares Outstanding: 137,300,930
• 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$16.67
• Price Target Upside: 28.43% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): 0.49
• Revenue Forecast (FY): C$1.22B

• Rating: 56 Neutral
• Price Target: C$13.00 ▲(0.15% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 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.

Improved Cash Generation

A shift to positive operating and free cash flow after prior negative periods signals stronger cash conversion. Sustainable FCF supports reinvestment in sales/product, funds working capital needs, and lowers dependence on external financing if management maintains disciplined margins and capex.

Growth Engine Momentum

Concentrated strength in targeted growth engines with accelerating location adds and cross-sell expands recurring subscription and payments revenue. Durable regional/product momentum enhances unit economics and provides a scalable base for software ARPU expansion and transaction revenue growth.

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.

Hardware Margin Pressure

Deeply negative hardware margins from strategic discounts act as a structural drag on blended gross margin. Unless offset by higher software monetization or payments economics, persistent hardware loss-leading could limit overall gross profit expansion and make margin targets harder to sustain.

Software Growth Moderation

A strategic move to annual contracts and lapping prior pricing actions can suppress near-term recognized revenue and ARPU despite improving LTV. This timing effect creates volatility in recurring revenue growth and complicates short-to-medium-term margin and FCF pacing while benefits accrue over longer contract lives.

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

Balance sheet strength (very low leverage with debt-to-equity ~0.01) and a shift to positive operating cash flow (~$63M) and free cash flow (~$40M) support the score. However, financial performance is constrained by weak profitability (gross margin ~40% and net margin around -58% with a ~-$692M net loss), plus very negative ROE (~-45%) and questions about the durability/quality of the recent cash-flow improvement versus large ongoing losses.

Income Statement

Revenue continues to expand, reaching about $1.19B in TTM (Trailing-Twelve-Months) and showing steady growth versus prior years. However, profitability remains a major weakness: gross margin is only ~40% in TTM (Trailing-Twelve-Months) and the company is deeply unprofitable with a net loss of roughly $692M and a net margin around -58% in TTM (Trailing-Twelve-Months). Losses also re-widened materially versus FY2024, indicating the cost structure is still not stabilized.

Balance Sheet

The balance sheet is a clear strength, with very low leverage: total debt is ~35M in TTM (Trailing-Twelve-Months) against stockholders’ equity of ~1.50B (debt-to-equity ~0.01). This provides financial flexibility and lowers refinancing risk. The key weakness is shareholder value erosion from ongoing losses, reflected in very negative returns on equity (about -45% in TTM (Trailing-Twelve-Months)), which could pressure equity over time if profitability does not improve.

Cash Flow

Cash generation has improved meaningfully in TTM (Trailing-Twelve-Months), with positive operating cash flow (~$63M) and positive free cash flow (~$40M), a sharp turnaround from negative free cash flow in recent annual periods. That said, cash flow quality is still mixed because net losses remain large (free cash flow is only a fraction of net losses), and prior-year cash flows were volatile and negative—so sustainability of the recent improvement remains a key watch item.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 12.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 12.98 is above the 20-day moving average (MA) of 12.59, below the 50-day MA of 14.68, and below the 200-day MA of 15.96, indicating a neutral trend. The MACD of -0.53 indicates Negative momentum. The RSI at 45.70 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSG	72 Outperform	C$8.42B	43.26	10.70%	―	14.55%	15.55%
SHOP	69 Neutral	C$240.30B	166.89	9.84%	―	33.71%	28.57%
KXS	69 Neutral	C$3.72B	49.33	8.24%	―	15.11%	75.40%
THNC	65 Neutral	C$125.47M	143.70	0.65%	―	14.05%	-62.16%
TCS	64 Neutral	C$423.09M	55.29	8.14%	1.07%	7.00%	110.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LSPD	56 Neutral	C$1.78B	-12.26	-37.01%	―	17.23%	-435.45%

Lightspeed POS Inc Corporate Events

Lightspeed Posts Strong Q3 2026 Results as New AI and Payments Tools Fuel Growth

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 to $33.6 million, though the company delivered positive adjusted income, higher adjusted EBITDA and significantly stronger operating and free cash flows, ending the quarter with $479 million in cash. Operationally, Lightspeed rolled out a series of new products and enhancements, including Lightspeed AI, a revamped retail Marketplace, Tap to Pay on Android, smart terminals, and new restaurant tools such as Lightspeed Tempo, Tasks, Reservations and expanded Mobile Tap in key European markets. These launches, together with strong performance in its core “growth engines” of North American retail and European hospitality—where revenue and gross transaction volume accelerated and roughly 2,600 net customer locations were added—underscore the company’s ongoing transformation toward higher-margin, scalable growth and improved profitability.

The most recent analyst rating on (TSE:LSPD) stock is a Hold with a C$13.50 price target. To see the full list of analyst forecasts on Lightspeed POS Inc stock, see the TSE:LSPD Stock Forecast page.

Lightspeed Sets February 5 Date for Fiscal Q3 2026 Earnings Release and Conference Call

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 signals an upcoming update on the company’s operating performance and strategy execution, giving investors and other stakeholders a scheduled opportunity to assess Lightspeed’s progress in its core retail and hospitality markets and its positioning within the competitive global commerce technology landscape.

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 Sets Date for Fiscal Q3 2026 Results and Investor Call

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 company is providing advance registration for investors to access the telephonic call and a replay service through February 12, 2026, underscoring its efforts to maintain transparent communication with shareholders and the broader market ahead of a key financial update that could offer insight into its performance and strategic momentum in the retail and hospitality technology space.

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 Appoints New CRO to Propel Growth Strategy

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, marketing, and partnerships to enhance the company’s market execution and revenue growth. This leadership change comes as Lightspeed aims to strengthen its go-to-market strategies and deepen customer relationships, following a period of strong financial performance. Additionally, President JD Saint-Martin will step down, marking a transition in leadership that underscores Lightspeed’s commitment to operational excellence and sustainable growth.

The most recent analyst rating on (TSE:LSPD) stock is a Buy 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.