Lightspeed Commerce (NYSE:LSPD) Issues Quarterly Earnings Results

Lightspeed Commerce (NYSE:LSPD) announced its quarterly earnings results on Thursday. The company reported $0.13 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.02, Briefing.com reports. The business had revenue of $322.70 million during the quarter, compared to analysts’ expectations of $310.58 million. Lightspeed Commerce had a negative net margin of 11.77% and a positive return on equity of 0.32%. The firm’s revenue for the quarter was up 5.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.06 EPS.

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

• Q1 revenue exceeded expectations: Organic revenue rose 17% year over year to $322.7 million, while growth-engine revenue increased 20% and adjusted EBITDA reached $17.5 million, within the company’s guidance.
• Software growth accelerated to 8%, software ARPU increased 6%, and payments penetration rose to 44% overall and 49% in growth engines. Transaction-based gross profit grew 23%, supported by higher payments adoption and a 56% increase in high-margin Lightspeed Capital revenue.
• Management highlighted strong demand among higher-value, multi-location customers and maintained its fiscal 2027 outlook for 12%–15% organic revenue growth and $75 million–$95 million of adjusted EBITDA.
• Lightspeed repurchased approximately $86 million of shares during the quarter, including 7 million shares canceled, and has roughly $150 million remaining under its broader buyback authorization.
• Total gross margin declined to 43% from 45% organically, primarily because of revenue mix and temporary hardware supply-chain and freight-cost pressures. Management expects hardware margins to improve in the second half of fiscal 2027, but adjusted free cash flow was negative $4.4 million in Q1 due partly to working-capital movements.

Lightspeed Commerce Trading Up 4.5%

Shares of LSPD traded up $0.43 during trading hours on Friday, reaching $10.10. 944,663 shares of the company traded hands, compared to its average volume of 1,042,057. The company’s fifty day moving average price is $9.85 and its two-hundred day moving average price is $9.65. The company has a market capitalization of $1.39 billion, a price-to-earnings ratio of -9.80, a price-to-earnings-growth ratio of 1.93 and a beta of 1.88. The company has a quick ratio of 4.18, a current ratio of 4.28 and a debt-to-equity ratio of 0.01. Lightspeed Commerce has a 12 month low of $7.83 and a 12 month high of $14.34.

Analysts Set New Price Targets

Several brokerages have recently commented on LSPD. Scotiabank lowered their price objective on shares of Lightspeed Commerce from $12.00 to $10.00 and set a “sector perform” rating for the company in a research note on Monday, May 25th. Stifel Nicolaus cut their target price on Lightspeed Commerce from $12.00 to $10.00 and set a “hold” rating on the stock in a research note on Friday, May 22nd. Weiss Ratings restated a “sell (d-)” rating on shares of Lightspeed Commerce in a report on Friday, July 17th. Barclays lowered their price target on Lightspeed Commerce from $12.00 to $11.00 and set an “equal weight” rating for the company in a research report on Tuesday, April 21st. Finally, BTIG Research cut their price objective on Lightspeed Commerce from $15.00 to $12.00 and set a “buy” rating on the stock in a research report on Thursday, May 21st. Four analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, Lightspeed Commerce presently has a consensus rating of “Hold” and a consensus target price of $11.32.

More Lightspeed Commerce News

Here are the key news stories impacting Lightspeed Commerce this week:

• Positive Sentiment: Lightspeed reported first-quarter revenue of $322.7 million, above the $310.6 million consensus estimate, while adjusted earnings of $0.13 per share exceeded expectations of $0.11 and increased from $0.06 a year earlier. Revenue rose 5.8% year over year. Lightspeed Announces First Quarter 2027 Financial Results
• Positive Sentiment: Management highlighted 17% organic revenue growth, 12% organic gross-profit growth, and strong performance in North American retail and European hospitality, where revenue grew 20% and gross volume increased 14%. The company also added approximately 1,300 net customer locations and repurchased $86 million of stock. Lightspeed Announces First Quarter 2027 Financial Results
• Neutral Sentiment: JPMorgan raised its price target from $11 to $12, implying potential upside, but maintained an “underweight” rating. The combination suggests the bank sees valuation support but remains concerned about Lightspeed’s outlook. JPMorgan Price Target Update
• Neutral Sentiment: Shareholders approved all proposals at Lightspeed’s annual and special meeting, providing continuity but no major strategic change. Shareholder Meeting Voting Results
• Negative Sentiment: Fiscal 2027 revenue guidance of $1.2 billion to $1.3 billion came in below the roughly $1.3 billion analyst consensus. Second-quarter guidance of $316 million to $326 million was broadly in line, but the full-year outlook raised concerns that growth could slow. Lightspeed also remains unprofitable on a net-income basis, increasing the importance of sustained growth and operating execution.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in LSPD. Goldman Sachs Group Inc. raised its holdings in Lightspeed Commerce by 151.8% in the first quarter. Goldman Sachs Group Inc. now owns 2,148,959 shares of the company’s stock worth $18,803,000 after purchasing an additional 1,295,469 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of Lightspeed Commerce by 8.1% during the 2nd quarter. Geode Capital Management LLC now owns 78,301 shares of the company’s stock valued at $922,000 after buying an additional 5,834 shares in the last quarter. Russell Investments Group Ltd. grew its position in shares of Lightspeed Commerce by 106.4% in the 2nd quarter. Russell Investments Group Ltd. now owns 10,386 shares of the company’s stock worth $122,000 after buying an additional 5,354 shares during the period. Norges Bank purchased a new stake in shares of Lightspeed Commerce in the 2nd quarter worth about $743,000. Finally, Invesco Ltd. increased its stake in shares of Lightspeed Commerce by 2.9% in the 2nd quarter. Invesco Ltd. now owns 29,567 shares of the company’s stock worth $346,000 after acquiring an additional 835 shares in the last quarter. Institutional investors own 68.68% of the company’s stock.

About Lightspeed Commerce

Lightspeed Commerce Inc is a Canadian technology company that develops cloud-based point-of-sale (POS) and e-commerce software for small and medium-sized businesses across the retail and hospitality sectors. Its integrated platform enables merchants to manage sales, inventory, customer relationships and analytics through a single interface. By combining in-store and online channels, Lightspeed helps businesses streamline operations and improve customer engagement in an increasingly omnichannel marketplace.

The company’s product suite includes POS terminals, payment processing services, inventory management tools, customer loyalty programs and data reporting dashboards.