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Lightspeed POS Inc (TSE:LSPD)
TSX:LSPD
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Lightspeed POS Inc
(TSX:LSPD)
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Rating:52Neutral
Price Target:
C$17.00
▼(-2.19% Downside)
The overall score reflects moderate financial performance with significant profitability and cash flow challenges. Technical indicators suggest neutral momentum, while valuation remains a concern due to negative earnings. The positive earnings call provides some optimism, highlighting strong growth in key areas.
Positive Factors
Revenue Growth
Consistent revenue growth demonstrates Lightspeed's expanding market reach and product adoption, supporting long-term business sustainability.
Payments Penetration
Increasing payments penetration enhances revenue streams and customer stickiness, reinforcing competitive advantage in the SaaS market.
Customer Location Growth
Expanding customer base indicates strong demand and effective market penetration strategies, crucial for sustained growth and market leadership.
Negative Factors
Profitability Challenges
Ongoing profitability issues could hinder reinvestment and growth opportunities, affecting long-term financial health and shareholder returns.
Cash Flow Issues
Negative cash flows may limit operational flexibility and increase reliance on external financing, impacting long-term business resilience.
Moderate Software Revenue Growth
Slower software revenue growth compared to other metrics may signal competitive pressures or market saturation, affecting future growth potential.
Lightspeed POS Inc (LSPD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.35B
Dividend YieldN/A
Average Volume (3M)466.31K
Price to Earnings (P/E)―
Beta (1Y)2.35
Revenue Growth18.75%
EPS Growth-386.84%
CountryCA
Employees3,000
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.08
Shares Outstanding135,244,000
10 Day Avg. Volume565,530
30 Day Avg. Volume466,305
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$20.73Price Target Upside19.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
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: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
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.45
Neutral
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.55
Neutral
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.40
Negative
| 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
Positive
17.38
Price Trends
16.99
Positive
16.01
Positive
17.19
Positive
Market Momentum
0.10
Negative
58.34
Neutral
69.11
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 17.38 is above the 20-day moving average (MA) of 16.82, above the 50-day MA of 16.99, and above the 200-day MA of 17.19, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 58.34 is Neutral, neither overbought nor oversold. The STOCH value of 69.11 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | 12.03B | 59.38 | 9.88% | ― | 15.63% | 18.47% | |
71 Outperform | 1.18B | 15.70 | 12.47% | 6.15% | 0.03% | -10.21% | |
70 Outperform | 5.17B | 149.22 | 5.61% | ― | 15.81% | 22.17% | |
70 Outperform | 12.95B | 22.08 | 11.09% | 2.91% | -7.77% | -1.03% | |
68 Neutral | 1.19B | 41.88 | 61.75% | ― | 18.51% | 32.49% | |
52 Neutral | C$2.35B | ― | -36.64% | ― | 18.75% | -386.84% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
TSE:LSPD
Lightspeed POS Inc
17.38
-1.08
-5.85%
OTEX
Open Text
36.97
5.05
15.82%
DSGX
The Descartes Systems Group
101.85
-1.70
-1.64%
TSE:KXS
Kinaxis Inc
183.29
23.72
14.86%
EGHSF
Enghouse Systems
15.44
-8.00
-34.13%
DCBO
Docebo
30.00
-15.50
-34.07%
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.