Lightspeed Commerce (NYSE:LSPD) Issues Earnings Results, Beats Expectations By $0.02 EPS

Lightspeed Commerce (NYSE:LSPD) posted its quarterly earnings data on Thursday. The company reported $0.13 EPS for the quarter, topping analysts’ consensus estimates of $0.11 by $0.02, Briefing.com reports. The firm had revenue of $322.70 million during the quarter, compared to analysts’ expectations of $310.58 million. Lightspeed Commerce had a positive return on equity of 1.04% and a negative net margin of 7.81%.The firm’s quarterly revenue was up 5.8% compared to the same quarter last year. During the same quarter last year, the business 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%

LSPD stock traded up $0.43 on Friday, hitting $10.10. 1,154,451 shares of the company were exchanged, compared to its average volume of 799,213. The company has a debt-to-equity ratio of 0.01, a current ratio of 4.28 and a quick ratio of 4.18. The stock has a market capitalization of $1.39 billion, a price-to-earnings ratio of -14.42, a price-to-earnings-growth ratio of 1.70 and a beta of 1.88. Lightspeed Commerce has a twelve month low of $7.83 and a twelve month high of $14.34. The business’s fifty day moving average is $9.88 and its two-hundred day moving average is $9.66.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Bank of America Corp DE raised its holdings in shares of Lightspeed Commerce by 846.0% in the 2nd quarter. Bank of America Corp DE now owns 1,873,942 shares of the company’s stock worth $21,944,000 after purchasing an additional 1,675,853 shares during the period. Goldman Sachs Group Inc. increased its position in shares of 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 acquiring an additional 1,295,469 shares in the last quarter. Artisan Partners Limited Partnership raised its stake in shares of Lightspeed Commerce by 17.5% in the 4th quarter. Artisan Partners Limited Partnership now owns 3,900,930 shares of the company’s stock valued at $47,066,000 after acquiring an additional 581,900 shares during the period. Marshall Wace LLP acquired a new position in shares of Lightspeed Commerce during the 2nd quarter valued at $4,473,000. Finally, Quadrature Capital Ltd acquired a new stake in Lightspeed Commerce in the 4th quarter valued at $3,890,000. Institutional investors and hedge funds own 68.68% of the company’s stock.

Wall Street Analyst Weigh In

LSPD has been the subject of a number of recent research reports. UBS Group lowered their price target on shares of Lightspeed Commerce from $11.00 to $10.00 and set a “neutral” rating for the company in a report on Friday, May 22nd. Stifel Nicolaus reduced their price objective on shares of Lightspeed Commerce from $12.00 to $10.00 and set a “hold” rating on the stock in a research note on Friday, May 22nd. Royal Bank Of Canada lowered their target price on shares of Lightspeed Commerce from $13.00 to $10.00 and set an “outperform” rating for the company in a research note on Friday, May 22nd. Benchmark cut their price target on Lightspeed Commerce from $18.00 to $16.00 and set a “buy” rating for the company in a report on Friday, May 22nd. Finally, BTIG Research reduced their price target on Lightspeed Commerce from $15.00 to $12.00 and set a “buy” rating on the stock in a research note on Thursday, May 21st. Four research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, Lightspeed Commerce currently has an average rating of “Hold” and an average price target of $11.32.

Key Lightspeed Commerce News

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

• Positive Sentiment: Lightspeed reported fiscal first-quarter 2027 revenue of $322.7 million, above the $310.6 million consensus, while adjusted EPS of $0.13 exceeded estimates of $0.11 and doubled from $0.06 a year earlier. Revenue increased 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, approximately 1,300 net new customer locations, and 20% revenue growth across North American retail and European hospitality. Lightspeed also repurchased $86 million of stock during the quarter, potentially supporting per-share value. Quarterly Financial Results
• Neutral Sentiment: JPMorgan raised its Lightspeed price target from $11 to $12, implying additional upside based on the referenced price, but maintained an “underweight” rating. The target increase is constructive, although the rating signals ongoing concerns about the company’s outlook. JPMorgan Price Target Update
• Negative Sentiment: Fiscal 2027 revenue guidance of $1.2 billion to $1.3 billion is below the roughly $1.3 billion analyst consensus, overshadowing the quarterly beat. Second-quarter revenue guidance of $316 million to $326 million is broadly near expectations, suggesting that investors remain focused on the slower full-year outlook. Fiscal 2027 Guidance

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.