Download PDF

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on LSPD

The recent 3-month performance of Lightspeed Commerce Inc. was negatively impacted by a series of factors. The company's Q3 2025 earnings missed expectations, with revenue growth of 17% year-over-year, but below analyst estimates. Additionally, the company's guidance for the fiscal year 2025 was revised downward, citing increased competition and macroeconomic uncertainty. Furthermore, the company's strategic review process, which was announced in February 2025, may have created uncertainty among investors.

1.c. Company Highlights

2. Lightspeed's Q2 2026 Earnings Exceed Expectations

Lightspeed's Q2 2026 revenues grew 15% year-over-year, driven by a growing location count, software ARPU expansion, and increasing payments penetration, with software revenue reaching $93.5 million, up 9%, and transaction-based revenue at $215.8 million, up 17%. The company's adjusted EBITDA was $21.3 million, a 53% increase year-over-year, and total gross margin was 42%, up from 41% last year. The actual EPS came out at $0.2228, beating estimates of $0.1378. The company's positive free cash flow of $18 million, up from $1.6 million a year ago, and cash balance of approximately $463 million, further bolster its financial position.

Publication Date: Nov -16

📋 Highlights
  • Revenue & Profit Growth Exceeded Outlook:: Q2 revenue grew 15% YoY to $309–$312M (Q3 guidance), with adjusted EBITDA of $21.3M (up 53%) and gross profit growth of at least 15%.
  • Transaction-Based Revenue Surge:: Transaction-based revenue reached $215.8M (+17% YoY), driven by 22% growth in gross payments volume and 32% capital revenue growth.
  • Strong Free Cash Flow & Margins:: Free cash flow jumped to $18M (up from $1.6M YoY), with total gross margin at 42% and software gross margin at 82%.
  • Outbound Sales & Location Growth:: Outbound bookings in growth engines tripled YoY, supported by a 130-rep sales team (targeting 150 by year-end), and customer locations grew 7% YoY.
  • AI-Driven Product Adoption:: Launched AI tools (AI showroom, product descriptions) and NuORDER platform, boosting cross-selling opportunities and wholesale retail integration.

Growth Engines and Customer Location Expansion

Lightspeed's customer locations in core growth engines, North American retail and European hospitality, grew 7% year-over-year, and outbound bookings nearly tripled year-over-year. The company is on pace to meet its 3-year customer location CAGR goal of 10-15%. The growth in these engines is a testament to the company's effective go-to-market efforts and the success of its NuORDER platform, which allows retailers to buy from wholesale right inside the platform.

AI-Driven Products and Features

Lightspeed's focus on AI-driven products and features is driving strong adoption, with the release of several new AI-powered tools, including AI showroom, AI product descriptions, and Integration Hub. The company's investments in outbound sales are paying off, with Q2 outbound bookings tripling year-over-year, and the outbound team has grown to approximately 130 fully ramped reps.

Valuation and Outlook

With a P/S Ratio of 1.47 and EV/EBITDA of -2.16, the market seems to have priced in some level of growth. However, with the company's raised outlook for the full fiscal year, expecting revenue growth of at least 12% year-over-year, gross profit growth of at least 15% year-over-year, and adjusted EBITDA of at least $70 million, there may be further upside. Analysts estimate next year's revenue growth at 10.5%, which may indicate a continued upward trajectory.

Capital Business and Merchant Cash Advance

Lightspeed's capital business is growing, with over 30% growth this year, and the company expects to see solid growth into future years. The company is using capital to upsell and cross-sell across its base, and it believes it can continue to grow its merchant cash advance business.

3. NewsRoom

Card image cap

NOTICE OF THE SETTLEMENT OF THE CLASS ACTION PROCEEDINGS RELATING TO LIGHTSPEED SECURITIES

Dec -04

Source:

Card image cap

Lightspeed Appoints Industry Veteran Gabriel Benavides as Chief Revenue Officer to Accelerate Profitable Growth

Nov -13

Source:

Card image cap

Millennium Systems International Appoints Adam Schneider as Chief Financial Officer

Nov -13

Source:

Card image cap

Assessing Lightspeed (TSX:LSPD) Valuation Following Recent Share Price Uptick

Nov -08

Source:

Card image cap

Lightspeed Commerce Inc (LSPD) Q2 2026 Earnings Call Highlights: Strong Revenue Growth and ...

Nov -06

Source:

Card image cap

Lightspeed POS (LSPD) Reports Q2 Earnings: What Key Metrics Have to Say

Nov -06

Source:

Card image cap

Lightspeed Commerce Inc. (LSPD) Beats Q2 Earnings and Revenue Estimates

Nov -06

Source:

Card image cap

Lightspeed Commerce Up 1.7% In US Premarket As Reports Q2 Earnings and Revs Beat; Raises Outlook for FY26

Nov -06

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.66%)

6. Segments

Transaction-based

Expected Growth: 12%

Lightspeed Commerce Inc.'s 12% growth in transaction-based revenue is driven by increasing adoption of omnichannel commerce, rising demand for digital payments, and expansion into new markets. Additionally, the company's focus on providing integrated payment solutions, inventory management, and customer engagement tools has contributed to its growth.

Subscription

Expected Growth: 14%

Lightspeed Commerce Inc.'s 14% subscription growth is driven by increasing adoption of omnichannel commerce solutions, rising demand for cloud-based point-of-sale systems, and expanding presence in key markets. Additionally, strategic acquisitions, innovative product offerings, and a growing partner ecosystem contribute to the company's rapid growth.

Hardware and Other

Expected Growth: 11%

Lightspeed Commerce Inc.'s Hardware and Other segment growth of 11% is driven by increasing adoption of its omnichannel commerce platform, expansion into new markets, and growing demand for its point-of-sale hardware solutions. Additionally, the company's strategic partnerships and investments in emerging technologies such as AI and IoT are contributing to its growth momentum.

7. Detailed Products

Lightspeed Retail

A cloud-based point of sale (POS) system designed for retailers to manage their sales, inventory, and customer data

Lightspeed Restaurant

A comprehensive restaurant management system that includes online ordering, delivery, and table management capabilities

Lightspeed eCommerce

A scalable and customizable eCommerce platform for businesses to create an online store and sell products online

Lightspeed Golf

A golf course management system that includes tee sheet management, point of sale, and customer management capabilities

Lightspeed Hotel

A comprehensive hotel management system that includes front desk management, room management, and point of sale capabilities

8. Lightspeed Commerce Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Lightspeed Commerce Inc. operates in a niche market, providing e-commerce solutions to retailers. While there are substitutes available, they are not as comprehensive as Lightspeed's offerings, reducing the threat of substitutes.

Bargaining Power Of Customers

Lightspeed Commerce Inc.'s customers are primarily small to medium-sized retailers, who have limited bargaining power. The company's solutions are often critical to its customers' operations, making it difficult for them to negotiate prices or terms.

Bargaining Power Of Suppliers

Lightspeed Commerce Inc. has a diverse supplier base, and its suppliers have limited bargaining power. The company's scale and negotiating power enable it to secure favorable terms with its suppliers.

Threat Of New Entrants

The e-commerce solutions market is highly competitive, and new entrants can easily enter the market. However, Lightspeed Commerce Inc.'s established brand, customer base, and comprehensive offerings create barriers to entry, reducing the threat of new entrants.

Intensity Of Rivalry

The e-commerce solutions market is highly competitive, with several established players competing for market share. Lightspeed Commerce Inc. faces intense competition from companies like Shopify, Magento, and BigCommerce, which can lead to pricing pressure and increased marketing expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.95%
Debt Cost 6.02%
Equity Weight 99.05%
Equity Cost 17.32%
WACC 17.21%
Leverage 0.96%

11. Quality Control: Lightspeed Commerce Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Kinaxis

A-Score: 5.2/10

Value: 0.7

Growth: 7.7

Quality: 6.8

Yield: 0.0

Momentum: 7.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
CleanSpark

A-Score: 4.5/10

Value: 5.6

Growth: 4.4

Quality: 9.0

Yield: 0.0

Momentum: 7.0

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Dayforce

A-Score: 4.3/10

Value: 2.8

Growth: 7.3

Quality: 4.7

Yield: 0.0

Momentum: 6.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Lightspeed Commerce

A-Score: 4.2/10

Value: 8.6

Growth: 5.0

Quality: 4.5

Yield: 0.0

Momentum: 2.5

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Bill.com

A-Score: 4.0/10

Value: 2.9

Growth: 9.4

Quality: 4.6

Yield: 0.0

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Asana

A-Score: 3.7/10

Value: 4.4

Growth: 6.3

Quality: 3.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

15.86$

Current Price

15.86$

Potential

-0.00%

Expected Cash-Flows