Lightspeed Commerce (NYSE:LSPD) Issues Quarterly Earnings Results

Lightspeed Commerce (NYSE:LSPD) issued its earnings results on Thursday. The company reported $0.17 earnings per share for the quarter, topping analysts’ consensus estimates of $0.16 by $0.01, Briefing.com reports. Lightspeed Commerce had a negative net margin of 7.81% and a positive return on equity of 1.06%. The company had revenue of $323.79 million for the quarter, compared to analysts’ expectations of $321.09 million. During the same period in the prior year, the company earned $0.16 earnings per share. The firm’s revenue was up 1.5% compared to the same quarter last year.

Here are the key takeaways from Lightspeed Commerce’s conference call:

• Revenue rose 15% year over year to $323.8 million, at the high end of guidance, while Adjusted EBITDA increased to $22.7 million. Lightspeed kept its fiscal 2027 outlook unchanged, forecasting 12%–15% organic revenue growth.
• Lightspeed is prioritizing larger, higher-value customers, even as net location adds softened. In its growth markets, locations grew 8%, while software revenue and GTV each grew 14%; new customer locations generated 27% more software revenue on average than a year ago.
• Software gross margin improved to 84% from 82% a year ago, and hardware gross margin improved sequentially to negative 59% from negative 74%. Adjusted free cash flow was $4 million, and management expects significant growth in adjusted free cash flow this fiscal year; it also said post-quarter cost reductions should support profitability, with some savings reinvested in growth.
• Payments penetration rose to 45% from 40% a year ago, while high-margin Lightspeed Capital revenue grew 42%. The company ended the quarter with about $343 million in cash, though cash declined as it funded share repurchases and expanded its merchant cash advance business.

Lightspeed Commerce Stock Performance

NYSE:LSPD traded down $0.15 during mid-day trading on Friday, hitting $10.29. The stock had a trading volume of 930,179 shares, compared to its average volume of 624,478. The stock has a market capitalization of $1.33 billion, a price-to-earnings ratio of -21.01, a P/E/G ratio of 1.74 and a beta of 1.85. The company has a 50 day simple moving average of $10.34 and a 200-day simple moving average of $9.84. Lightspeed Commerce has a 52 week low of $7.83 and a 52 week high of $13.72. The company has a current ratio of 3.55, a quick ratio of 3.45 and a debt-to-equity ratio of 0.01.

Analyst Ratings Changes

Several research analysts have recently commented on the stock. Royal Bank Of Canada lifted their price target on shares of Lightspeed Commerce from $10.00 to $13.00 and gave the company an “outperform” rating in a report on Monday, August 31st. Truist Financial increased their price objective on shares of Lightspeed Commerce from $10.00 to $11.00 and gave the stock a “hold” rating in a research note on Friday, October 23rd. Weiss Ratings reissued a “sell (d-)” rating on shares of Lightspeed Commerce in a report on Thursday, October 15th. JPMorgan Chase & Co. lifted their target price on Lightspeed Commerce from $11.00 to $12.00 and gave the company an “underweight” rating in a research note on Friday, July 31st. Finally, Morgan Stanley decreased their target price on Lightspeed Commerce from $11.50 to $9.50 and set an “equal weight” rating for the company in a research note on Monday, September 28th. Four equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $11.35.

About Lightspeed Commerce

Lightspeed Commerce Inc is a cloud-based commerce technology company that provides point-of-sale and business management software for small and midsized businesses. Its platform is designed for retailers, restaurants, hospitality operators and golf businesses, helping them manage sales, payments, inventory, customer relationships and day-to-day operations through integrated digital tools.

Lightspeed’s products include point-of-sale systems, payment processing, e-commerce capabilities, inventory and order management, analytics, accounting integrations, customer loyalty features and tools for managing restaurants and golf courses.