Lightspeed Commerce (NYSE:LSPD) Issues Earnings Results

Lightspeed Commerce (NYSE:LSPD) released its quarterly earnings data on Thursday. The company reported $0.17 EPS for the quarter, beating the consensus estimate of $0.16 by $0.01, Briefing.com reports. The firm had revenue of $323.79 million for the quarter, compared to the consensus estimate of $321.09 million. Lightspeed Commerce had a negative net margin of 5.51% and a positive return on equity of 1.28%. The company’s quarterly revenue was up 1.5% on a year-over-year basis. During the same period in the previous year, the company earned $0.16 earnings per share.

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 Trading Down 1.5%

NYSE LSPD traded down $0.15 on Friday, reaching $10.29. The company had a trading volume of 930,179 shares, compared to its average volume of 807,815. The firm has a market cap of $1.33 billion, a price-to-earnings ratio of -21.01, a P/E/G ratio of 1.60 and a beta of 1.85. The company has a debt-to-equity ratio of 0.01, a current ratio of 3.55 and a quick ratio of 3.45. Lightspeed Commerce has a fifty-two week low of $7.83 and a fifty-two week high of $13.72. The business has a 50 day moving average of $10.34 and a two-hundred day moving average of $9.84.

Wall Street Analyst Weigh In

A number of research analysts recently commented on LSPD shares. Morgan Stanley decreased their price target on shares of Lightspeed Commerce from $11.50 to $9.50 and set an “equal weight” rating on the stock in a research note on Monday, September 28th. Royal Bank Of Canada raised their price objective on shares of Lightspeed Commerce from $10.00 to $13.00 and gave the stock an “outperform” rating in a research report on Monday, August 31st. JPMorgan Chase & Co. boosted their price objective on Lightspeed Commerce from $11.00 to $12.00 and gave the stock an “underweight” rating in a report on Friday, July 31st. Truist Financial upped their target price on Lightspeed Commerce from $10.00 to $11.00 and gave the company a “hold” rating in a research report on Friday, October 23rd. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Lightspeed Commerce in a research note on Thursday, October 15th. Four analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, Lightspeed Commerce has an average rating of “Hold” and an average target price of $11.35.

About Lightspeed Commerce

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.