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

Lightspeed Commerce (NYSE:LSPD) announced its quarterly earnings results on Thursday. The company reported $0.15 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.13 by $0.02, Briefing.com reports. Lightspeed Commerce had a positive return on equity of 0.37% and a negative net margin of 58.15%.The firm had revenue of $312.35 million during the quarter, compared to analyst estimates of $311.28 million. During the same quarter in the previous year, the business earned $0.12 earnings per share. Lightspeed Commerce’s quarterly revenue was up 11.5% on a year-over-year basis.

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

• Strong quarter and upgraded outlook: management reported $312.3M revenue, $20.2M Adjusted EBITDA (+22%), reiterated positive free cash flow (second consecutive quarter) and raised Q4 and FY2026 guidance (Q4 revenue ~$280–284M; FY revenue ~$1.216–1.22B; Q4 adj. EBITDA ~$50M; FY adj. EBITDA ~$72M).
• Growth engines accelerating: North America Retail and Europe Hospitality (now ~two‑thirds of revenue) grew 21% YoY and added ~2,600 net new locations—the fastest location growth since the transformation—with a 150‑rep outbound sales force fully hired to scale acquisition.
• Product/AI-driven ARPU strategy: launched Lightspeed AI, Marketplace (wholesale), Tempo, Reservations and Tasks plus deeper payments/wholesale integration; management says proprietary payments and wholesale data will drive module attachment and higher ARPU.
• Hardware margin headwind: management is using strategic discounts and free payment terminals to win customers, which pushed hardware gross margins down and could persist (company cited hardware margin ranges around -50% to -60% depending on new business mix).
• Healthy balance sheet and capital allocation optionality: cash of ~$479M, ~$200M remaining on buyback authority after $179M repurchased last 12 months (shares outstanding down ~10% YoY), and plans to prudently grow the high‑margin merchant cash advance business (≈$106M outstanding).

Lightspeed Commerce Trading Down 0.5%

Shares of LSPD stock opened at $9.26 on Friday. Lightspeed Commerce has a fifty-two week low of $7.34 and a fifty-two week high of $14.34. The company has a debt-to-equity ratio of 0.01, a quick ratio of 4.58 and a current ratio of 4.66. The stock’s fifty day moving average is $11.60 and its two-hundred day moving average is $11.92. The firm has a market capitalization of $1.26 billion, a P/E ratio of -2.00, a PEG ratio of 12.54 and a beta of 2.07.

Key Lightspeed Commerce News

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

• Positive Sentiment: Q3 beat and revenue growth — Lightspeed reported $0.15 EPS (above consensus) and revenue of $312.3M, up ~11% Y/Y, driven by transaction growth and payments adoption; this demonstrates ongoing top-line momentum. Article Title
• Positive Sentiment: Profitability and cash-flow improvements — Management reported gross margin expansion to ~43%, positive operating cash flow of $28.9M and adjusted free cash flow of $14.9M, which support a path to improved unit economics. Article Title
• Positive Sentiment: Customer and GTV traction — Lightspeed added ~2,600 net customer locations and saw double-digit growth in key segments (retail NA, hospitality EU), supporting future recurring revenue and payment volume. Article Title
• Neutral Sentiment: Analyst price-target adjustments — BTIG and RBC lowered price targets (BTIG to $15; RBC to $13) but retained buy/outperform stances, leaving meaningful upside implied but at reduced valuations. Article Title Article Title
• Negative Sentiment: Mixed market reception and continued net losses — Coverage and press noted a “cool” investor reception despite the beat; the company still shows a negative net margin and reported a quarterly loss in headline coverage, which keeps sentiment cautious. Article Title
• Negative Sentiment: Analyst consensus is mixed — MarketBeat/aggregators show an average “Hold” from analysts (majority hold or neutral ratings), indicating limited near-term conviction from the street. Article Title

Analysts Set New Price Targets

LSPD has been the subject of several research reports. Barclays dropped their price target on Lightspeed Commerce from $15.00 to $14.00 and set an “equal weight” rating on the stock in a research report on Monday, January 12th. Zacks Research cut shares of Lightspeed Commerce from a “strong-buy” rating to a “hold” rating in a report on Monday, January 19th. Weiss Ratings reissued a “sell (d-)” rating on shares of Lightspeed Commerce in a research report on Thursday, January 22nd. TD Securities raised Lightspeed Commerce to a “hold” rating in a research report on Thursday, January 15th. Finally, National Bankshares reduced their price objective on Lightspeed Commerce from $15.00 to $13.00 and set a “sector perform” rating for the company in a research note on Thursday, October 23rd. Five equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Lightspeed Commerce presently has an average rating of “Hold” and an average price target of $13.40.

Hedge Funds Weigh In On Lightspeed Commerce

Several institutional investors have recently bought and sold shares of the company. Lazard Asset Management LLC purchased a new stake in shares of Lightspeed Commerce during the 3rd quarter worth approximately $1,384,000. Two Sigma Investments LP raised its holdings in Lightspeed Commerce by 166.3% during the third quarter. Two Sigma Investments LP now owns 202,400 shares of the company’s stock worth $2,338,000 after purchasing an additional 126,400 shares during the last quarter. Marshall Wace LLP boosted its position in Lightspeed Commerce by 22.1% during the third quarter. Marshall Wace LLP now owns 466,574 shares of the company’s stock worth $5,389,000 after purchasing an additional 84,557 shares in the last quarter. Man Group plc grew its holdings in Lightspeed Commerce by 288.2% in the second quarter. Man Group plc now owns 108,307 shares of the company’s stock valued at $1,268,000 after purchasing an additional 80,407 shares during the last quarter. Finally, Geode Capital Management LLC increased its position in shares of Lightspeed Commerce by 8.1% in the second 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. 68.68% of the stock is owned by institutional investors and hedge funds.

Lightspeed Commerce Company Profile

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.