In the latest trading session, Lightspeed Commerce Inc. (LSPD) closed at $11.97, marking a +2.75% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.58% for the day. The company's stock has dropped by 3.96% in the past month, falling short of the Computer and Technology sector's gain of 6.37% and the S&P 500's gain of 3.68%.Investors will be eagerly watching for the performance of Lightspeed Commerce Inc. in its upcoming earnings disclosure. The company is forecasted to ...

Accessibility StatementSkip Navigation Showroom provides retailers with a sleek online presence that highlights real-time inventory and brand storytelling, all without the challenges of eCommerce. MONTREAL, Sept. 29, 2025 /PRNewswire/ - Lightspeed Commerce Inc. (NYSE: LSPD) (TSX: LSPD) ("Lightspeed" or the "Company"), the unified omnichannel platform powering ambitious retail and hospitality businesses in over 100 countries, today announced the launch of Showroom, supported by AI and Lightspeed technology, ...

Company Performance - Lightspeed Commerce Inc. closed at $12.67, with a daily increase of 2.43%, outperforming the S&P 500's loss of 0.1% [1] - The stock has risen by 2.57% over the past month, underperforming the Computer and Technology sector's gain of 5.94% [1] Upcoming Financial Results - The company is expected to report an EPS of $0.09, reflecting a 30.77% decline year-over-year [2] - Revenue is anticipated to be $312.84 million, indicating a 12.86% increase compared to the same quarter last year [2] Fiscal Year Projections - For the fiscal year, earnings are projected at $0.4 per share, a decrease of 11.11%, while revenue is expected to reach $1.21 billion, an increase of 11.96% [3] Analyst Estimates and Stock Performance - Recent changes in analyst estimates show a 64.82% decline in the Zacks Consensus EPS estimate, with Lightspeed holding a Zacks Rank of 4 (Sell) [5] - Positive estimate revisions are correlated with stock price performance, indicating analyst optimism about business trends [4] Valuation Metrics - The company has a Forward P/E ratio of 31.26, which is lower than the industry average of 31.68 [6] - Lightspeed's PEG ratio stands at 1.9, compared to the Internet - Software industry's average PEG ratio of 2.27 [7] Industry Context - The Internet - Software industry is part of the Computer and Technology sector, currently ranked 70 in the Zacks Industry Rank, placing it in the top 29% of over 250 industries [8]

Core Viewpoint - Lightspeed Commerce Inc. has released its fourth annual Sustainability Report, detailing its Environmental, Social, and Governance (ESG) initiatives for the fiscal year ending March 31, 2025, emphasizing its commitment to empowering businesses and communities globally [1][2]. ESG Initiatives - The company has made significant progress in diversity, equity, and inclusion (DEI), with 87% of employees feeling they can be their authentic selves at work, and a workforce comprising 11% LGBTQ2S+, 9% persons with disabilities, and 34% BIPOC representation [6]. - Lightspeed's executive team includes 43% women, and the company has introduced a Family Building Benefit for Canadian employees, covering fertility procedures, surrogacy, and adoption [6]. - The company has partnered with GiftTrees to implement the Carbon Friendly Dining program, resulting in over 2 million trees planted to offset carbon emissions from meals [6]. Community Engagement - Lightspeed Care Club provides a year-long subscription to Lightspeed POS and Payments for non-profit organizations linked to employees, benefiting initiatives like the Young Enterprise Scheme (YES) in New Zealand, which allowed 5,000 high school students to access Lightspeed's e-commerce platform [5][7]. - The company emphasizes its role in supporting local businesses and communities through technology and insights, aiming to build stronger neighborhoods worldwide [4]. Company Overview - Lightspeed operates as a unified omnichannel platform for retail and hospitality businesses in over 100 countries, offering services that include point of sale, e-commerce, embedded payments, and inventory management [8][9]. - Founded in Montreal in 2005, Lightspeed is dual-listed on the New York Stock Exchange and Toronto Stock Exchange [10].

Core Viewpoint - Lightspeed Commerce Inc. (LSPD) has shown a recent stock performance of +5.8% over the past month, outperforming the Zacks S&P 500 composite's +1.2% and the Zacks Internet - Software industry's +7.1% [1] Earnings Estimates Revisions - For the current quarter, Lightspeed POS is expected to post earnings of $0.11 per share, reflecting a decrease of -15.4% from the same quarter last year, with a significant downward revision of -67.9% in the Zacks Consensus Estimate over the last 30 days [4] - The consensus earnings estimate for the current fiscal year is $0.44, indicating a slight decline of -2.2% from the previous year, with a notable change of -56.8% in the estimate over the last month [4] - For the next fiscal year, the consensus earnings estimate is $0.68, suggesting an increase of +54.6% compared to the previous year, with a minor upward revision of +1.5% in the last month [5] Revenue Growth Projections - The consensus sales estimate for the current quarter is $314.18 million, indicating a year-over-year growth of +13.4% [9] - For the current fiscal year, the revenue estimate is $1.2 billion, reflecting a growth of +11.8%, while the next fiscal year's estimate of $1.34 billion indicates a growth of +11.7% [9] Last Reported Results and Surprise History - In the last reported quarter, Lightspeed POS achieved revenues of $304.94 million, a year-over-year increase of +14.6%, with an EPS of $0.06 compared to $0.1 a year ago [10] - The reported revenues exceeded the Zacks Consensus Estimate of $286.85 million by +6.31%, while the EPS fell short by -45.45% [10] - Over the last four quarters, Lightspeed POS surpassed consensus EPS estimates twice and topped revenue estimates three times [11] Valuation Metrics - Lightspeed POS is rated F in the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [15]

Financial Data and Key Metrics Changes - Fiscal year 2025 was a foundational year for the company, with significant strategic reviews conducted to maximize shareholder value [28] - Subscription revenues increased by 9% year over year, with gross profit dollars growing by 19% year over year [35] - Adjusted EBITDA improved to $15.9 million, up 55% year over year [35] Business Line Data and Key Metrics Changes - The company is focusing on two growth engines: retail in North America and hospitality in Europe, enhancing investments in go-to-market and product innovation [30][31] - Subscription ARPU increased by 10% in Q1, indicating successful product innovation and upselling efforts [34] Market Data and Key Metrics Changes - The North American retail market serves complex, high GDV retailers, while the European hospitality market is fragmented, where the company is already a leader [31][32] - The company aims to accelerate customer location growth through targeted outbound sales and vertical-specific marketing [34] Company Strategy and Development Direction - The company updated its mission statement to focus on fueling retail and hospitality ambitions with technology and insights [29] - A C-suite led transformation office has been established to drive execution across key priorities, with 11 work streams progressing [32] Management's Comments on Operating Environment and Future Outlook - Management believes the results demonstrate that the current strategy is working and that the company is on the right path [35] - The company has made significant efforts to return capital to shareholders, repurchasing approximately 18.7 million shares, reducing total shares outstanding by about 12% [36] Other Important Information - The company has an additional $200 million authorized for future share repurchases under its Board authorized share repurchase program [36] Q&A Session Summary - No questions were raised during the Q&A session, and management expressed gratitude to shareholders for their commitment and support [38][39]

Core Insights - For the quarter ended June 2025, Lightspeed Commerce Inc. reported revenue of $304.94 million, reflecting a year-over-year increase of 14.6% [1] - The earnings per share (EPS) for the quarter was $0.06, down from $0.10 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $286.85 million by 6.31%, while the EPS fell short of the consensus estimate of $0.11 by 45.45% [1] Revenue Breakdown - Subscription revenues were $90.86 million, surpassing the four-analyst average estimate of $90.07 million [4] - Hardware and other revenues reached $9.52 million, compared to the average estimate of $9.14 million from four analysts [4] - Transaction-based revenues amounted to $204.56 million, exceeding the average estimate of $188.13 million based on four analysts [4] Stock Performance - Shares of Lightspeed POS have returned +12.8% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Group 1: Earnings Performance - Lightspeed Commerce Inc. reported quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.11 per share, representing an earnings surprise of -45.45% [1] - The company posted revenues of $304.94 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 6.31%, compared to year-ago revenues of $266.09 million [2] - Over the last four quarters, Lightspeed has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Lightspeed POS shares have lost about 13.7% since the beginning of the year, while the S&P 500 has gained 8.2% [3] - The current consensus EPS estimate for the coming quarter is $0.12 on revenues of $299.29 million, and for the current fiscal year, it is $0.51 on revenues of $1.19 billion [7] - The estimate revisions trend for Lightspeed POS was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Group 3: Industry Context - The Internet - Software industry, to which Lightspeed belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $305 million, representing a 15% year-over-year increase, exceeding the high end of the company's outlook [7][17] - Gross profit reached $129 million, up 19% year-over-year, significantly above the 13% outlook [7][20] - Adjusted EBITDA was $16 million, reflecting a 55% increase year-over-year [7][22] - Payments penetration increased to 41%, up from 36% in the same quarter last year [7][19] Business Line Data and Key Metrics Changes - Software revenue grew 9% year-over-year, with software ARPU increasing by 10% [12][18] - Transaction-based revenue was $204.6 million, up 18% year-over-year [18] - Total gross profit margin improved to 42%, up from 41% last year [20][21] - The company added approximately 1,700 net new customer locations in its growth engines, with total growth engine locations up 5% year-over-year [8][9] Market Data and Key Metrics Changes - Gross payments volume grew 21% year-over-year, with capital revenue increasing by 34% [18] - GTV (Gross Transaction Volume) grew by 4% to $24.6 billion, with growth engine locations up by 5% year-over-year [19][20] - ARPU reached a record $655, up 16% year-over-year, driven by higher software and payments monetization [19] Company Strategy and Development Direction - The company is focusing on two core growth engines: retail in North America and hospitality in Europe, where it has a strong product-market fit and significant growth potential [6][7] - Strategic priorities include growing customer locations, expanding subscription ARPU, and improving adjusted EBITDA and free cash flow [8][9] - The company is investing in outbound sales and vertical marketing to enhance its go-to-market strategy [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and ability to execute despite a fluid macro environment [25] - The company expects total revenue growth of approximately 10% to 12% year-over-year for fiscal 2026, with gross profit growth of approximately 14% [26] - Management highlighted the importance of ongoing investments in sales and product innovation to drive future growth [91] Other Important Information - The company completed a normal course issuer bid, returning $85 million to shareholders in Q1 [23][110] - The cash balance at the end of Q1 was approximately $448 million, with $200 million remaining under the board's authorization for share repurchases [24][110] Q&A Session Summary Question: Subscription revenue growth and pricing initiatives - Management acknowledged that the 9% software growth was solid and attributed it to new customer additions and pricing initiatives from the previous year [28][30] Question: Expectations for location growth - Management expects location growth to converge towards a 10% to 15% CAGR by fiscal 2028, driven by ramping outbound sales efforts [33][35] Question: Drivers of Q1 revenue and gross profit - Management confirmed that Q1 results were driven by solid execution and that there were no one-time factors affecting the results [40][43] Question: Same store sales dynamics - Hospitality same store sales outperformed North American retail, with double-digit growth in European hospitality [47][48] Question: AI impact on retail and hospitality - Management discussed the use of AI to automate tasks and drive insights, enhancing operational efficiency for merchants [53][55] Question: Capital allocation and buyback strategy - Management confirmed that the pace of share buybacks would continue to be opportunistic, with $200 million remaining for future repurchases [111][110]

Q1 2026 Financial Highlights - Revenue reached $304.9 million, a 15% increase year-over-year[10] - Gross Payment Volume (GPV) totaled $10.2 billion, representing a 21% year-over-year growth[10] - Gross Transaction Volume (GTV) amounted to $24.6 billion[10] - Approximately 97% of revenue is recurring or transaction-based[10] - Average Revenue Per User (ARPU) grew by 16% to approximately $655[10] - Gross profit increased by 19% year-over-year to $129.1 million[13] Fiscal Year 2026 Outlook - The company anticipates approximately 10%-12% revenue growth for fiscal year 2026[15] - The company anticipates approximately 14% gross profit growth for fiscal year 2026[15] - The company anticipates approximately $68 - $72 million Adjusted EBITDA for fiscal year 2026[15] Payment Solutions - Gross Payment Volume (GPV) has a 52% Compound Annual Growth Rate (CAGR)[21] - Q1 2026 Gross Payment Volume (GPV) reached $10.2 billion, a 21% year-over-year increase[27] - Q1 2026 Gross Transaction Volume (GTV) reached $24.6 billion[26]