Lightspeed Commerce (NYSE:LSPD) Announces Earnings Results, Beats Estimates By $0.01 EPS

Lightspeed Commerce (NYSE:LSPD) released its quarterly 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. The company had revenue of $323.79 million during the quarter, compared to analysts’ expectations of $321.09 million. Lightspeed Commerce had a positive return on equity of 1.28% and a negative net margin of 5.51%. Lightspeed Commerce’s quarterly revenue was up 1.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.16 EPS.

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 Price Performance

LSPD stock traded down $0.15 during trading on Friday, hitting $10.29. The stock had a trading volume of 930,179 shares, compared to its average volume of 807,815. Lightspeed Commerce has a twelve month low of $7.83 and a twelve month high of $13.72. The company’s 50-day moving average price is $10.34 and its two-hundred day moving average price is $9.84. The company has a debt-to-equity ratio of 0.01, a current ratio of 3.55 and a quick ratio of 3.45. The stock has a market capitalization of $1.33 billion, a P/E ratio of 73.50, a PEG ratio of 1.60 and a beta of 1.85.

Wall Street Analyst Weigh In

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

Lightspeed Commerce Company Profile

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.