Lightspeed POS Inc (LSPD) AI Stock Analysis

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Lightspeed POS Inc

(NYSE:LSPD)

Rating:―N/A

Action:N/A

Date:―

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Positive Factors

Strong revenue growth and maintained outlookRevenue growth reaching the high end of guidance, alongside a maintained fiscal outlook, indicates continued demand for Lightspeed’s platform. Sustained expansion supports operating leverage, gives management visibility for investment, and strengthens the foundation for improving profitability over the next several quarters.

Negative Factors

Business remains unprofitableAlthough losses are narrowing, negative operating and net margins show that Lightspeed has not yet demonstrated consistent earnings at scale. The company must continue improving gross profit conversion and cost efficiency before revenue growth reliably translates into durable bottom-line earnings.

Lightspeed POS Inc (LSPD) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $1.94B
Dividend Yield: ―
Average Volume (3M): 744.29K
Price to Earnings (P/E): -20.9
Beta (1Y): 1.63
Revenue Growth: 7.96%
EPS Growth: 89.08%
Country: US
Employees: 3,400
Sector: Technology
Sector Strength: 61
Industry: Software - Application

Lightspeed POS Inc Business Overview & Revenue Model

Company Description

Lightspeed Commerce Inc. delivers a cloud-based Software as a Service (SaaS) platform designed for small and medium-sized businesses, including retailers, restaurants, and golf course operators, with services extending across Canada, the United State...

Lightspeed POS Inc Earnings Call Summary

Earnings Call Date:Nov 05, 2026(Q2-2027)|% Change Since:-11.51%|Next Earnings Date:Feb 04, 2027

Earnings Call SentimentPositive

The call was predominantly positive. Revenue growth reached the high end of guidance, the core growth engines outperformed, software growth and ARPU accelerated, payments penetration improved, profitability and free cash flow progressed, and fiscal 27 guidance was maintained. The main challenges were softer net location additions, a decline in total gross margin, still-negative hardware margins, organizational reductions, and a lower cash balance, but management emphasized that these actions and metrics support its longer-term transformation.

Positive Updates

Revenue Growth at High End of Outlook

Organic second-quarter revenue increased 15% year over year to $323.8 million, at the high end of the 12% to 16% outlook range.

Negative Updates

Softer Net Location Additions

Net location additions were softer than prior quarters. Management said approximately 800 net new locations were added in the quarter, compared with roughly 2,000 in Q2 of the prior year, as the company tightened deal parameters and focused on higher-quality upmarket customers.

Company Guidance

Fiscal 27 outlook remains unchanged: total revenue of $1.225 billion to $1.265 billion, representing organic growth of 12% to 15%, total gross profit of $565 million to $585 million, representing organic growth of 12% to 16%, and adjusted EBITDA of $75 million to $95 million; for Q3 of fiscal 27, the company expects total revenue of $310 million to $320 million, representing organic growth of 11% to 15%, total gross profit of $141 million to $146 million, representing organic growth of 11% to 15%, and adjusted EBITDA of $25 million to $30 million. The company expects hardware margins to continue to improve significantly in the second half of this fiscal year and into fiscal 28, adjusted free cash flow to deliver significant growth this fiscal year compared with last year's $18.2 million, and remains on track to meet its free cash flow target of $95 million for fiscal 28.

Lightspeed POS Inc Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

LSPD against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:DSG	78Outperform	CAD 11.54B	43.86	11.69%	―	12.43%	25.58%
TSE:KXS	78Outperform	CAD 5.86B	49.07	22.26%	―	18.20%	163.22%
TSE:SHOP	76Outperform	CAD 267.75B	90.46	16.53%	―	31.59%	21.37%
TSE:TCS	72Outperform	CAD 547.97M	89.76	9.76%	0.92%	10.33%	46.04%
TSE:THNC	72Outperform	CAD 158.41M	-22.98	-11.94%	―	3.19%	-1907.14%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

LSPD and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
LSPD	Lightspeed Pos	10.23	-2.06	-16.76%
TSE:DSG	The Descartes Systems Group Inc.	136.88	21.33	18.46%
TSE:SHOP	Shopify Inc.	212.57	6.69	3.25%
TSE:KXS	Kinaxis	229.37	53.23	30.22%
TSE:TCS	TECSYS Inc.	38.95	4.71	13.74%
TSE:THNC	Thinkific Labs, Inc.	2.38	0.43	22.05%

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.

Lightspeed POS Inc AI Stock Analysis