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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:53Neutral
Price Target:
C$17.00
▲(0.95% Upside)
The overall stock score is driven by strong earnings call results, highlighting revenue and profit growth. However, financial performance and valuation metrics are weak, with profitability and cash flow challenges. Technical analysis indicates a neutral trend, contributing to a moderate overall score.
Positive Factors
Earnings
Lightspeed reported good results with revenue and adj. EBITDA above estimates, indicating strong performance.
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.
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: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook with strong growth in key areas such as revenue, payments penetration, and adjusted EBITDA. Product innovation and customer location growth were highlighted as significant achievements. However, there were some areas for improvement, such as software revenue growth and performance in North American retail. Overall, the positive aspects and growth metrics significantly outweighed the challenges.
Q1-2026 Updates
Positive Updates
Strong Revenue and Profit Growth
Revenue grew by 15% year-over-year to $305 million, exceeding the high-end of the outlook. Gross profit increased by 19%, also surpassing expectations.
Increased Payments Penetration
Payments penetration reached 41%, up from 36% in the same quarter last year.
Significant EBITDA Growth
Adjusted EBITDA was $16 million, up 55% year-over-year.
Customer Location and ARPU Growth
Added approximately 1,700 net new customer locations, with total growth engine locations up 5% year-over-year. ARPU reached a record $655, up 16% year-over-year.
Strong Product Innovation
Launched several new features in retail and hospitality, including AI-powered tools, leading to higher ARPU and customer satisfaction.
Negative Updates
Moderate Software Revenue Growth
Software revenue grew by 9% year-over-year, which, while positive, suggests room for improvement compared to other growth metrics.
Challenges in North American Retail
Same-store sales growth was lower in North American retail compared to European hospitality, with a low single-digit growth rate.
Company Guidance
During the Lightspeed First Quarter 2026 Earnings Call, the company reported a 15% year-over-year revenue increase, reaching $305 million, surpassing their outlook. Gross profit rose by 19% to $129 million, also exceeding expectations. Payments penetration improved to 41%, up from 36% the previous year. Lightspeed added 1,700 net new customer locations, increasing growth engine locations by 5% year-over-year. The company's adjusted EBITDA was reported at $16 million, marking a 55% growth compared to the previous year. The company outlined three strategic priorities: growing customer locations, expanding subscription ARPU, and improving adjusted EBITDA and free cash flow. In their growth markets, North American retail and European hospitality, software revenue grew by 9% and software ARPU increased by 10%. Looking ahead, for the second quarter, Lightspeed expects revenue between $305 million and $310 million, with gross profit growth of about 14% year-over-year and adjusted EBITDA ranging from $17 million to $19 million. For fiscal 2026, they anticipate a 10% to 12% revenue growth, a 14% gross profit increase, and an adjusted EBITDA 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 balance sheet is strong with low leverage, 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
Positive
Last Price16.84
Price Trends
50DMA
16.80
Positive
100DMA
15.65
Positive
200DMA
17.61
Negative
Market Momentum
MACD
-0.05
Positive
RSI
50.59
Neutral
STOCH
48.56
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 16.84 is above the 20-day moving average (MA) of 16.73, above the 50-day MA of 16.80, and below the 200-day MA of 17.61, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 50.59 is Neutral, neither overbought nor oversold. The STOCH value of 48.56 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$35.55B8.88-11.05%1.87%8.55%-8.14%
53
Neutral
C$2.22B-36.64%18.75%-386.84%
$8.46B20.1010.73%3.20%
$9.27B63.6610.54%
70
Outperform
C$5.37B155.345.93%15.81%22.17%
$834.26M15.3512.56%5.29%
$923.27M43.8555.53%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:LSPD
Lightspeed POS Inc
16.84
0.18
1.08%
OTEX
Open Text
33.23
2.59
8.45%
DSGX
The Descartes Systems Group
107.79
11.28
11.69%
TSE:KXS
Kinaxis Inc
190.80
40.44
26.90%
EGHSF
Enghouse Systems
14.99
-6.77
-31.11%
DCBO
Docebo
31.18
-9.60
-23.54%

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: Sep 07, 2025