Lightspeed Commerce (NYSE:LSPD) Issues Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Lightspeed Commerce (NYSE:LSPD) announced its earnings results on Thursday. The company reported $0.17 earnings per share 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 positive return on equity of 1.06% and a negative net margin of 7.81%. The firm’s revenue for the quarter was up 1.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $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

Shares of LSPD stock traded down $0.15 during mid-day trading on Friday, hitting $10.29. 930,179 shares of the stock traded hands, compared to its average volume of 624,478. Lightspeed Commerce has a twelve month low of $7.83 and a twelve month high of $13.72. The firm has a market cap of $1.33 billion, a price-to-earnings ratio of -21.01, a price-to-earnings-growth ratio of 1.74 and a beta of 1.85. The company’s 50-day simple moving average is $10.34 and its 200-day simple moving average is $9.84. The company has a debt-to-equity ratio of 0.01, a quick ratio of 3.45 and a current ratio of 3.55.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the stock. Royal Bank Of Canada lifted their price objective on shares of Lightspeed Commerce from $10.00 to $13.00 and gave the company an “outperform” rating in a research note on Monday, August 31st. Truist Financial increased their target price on shares of Lightspeed Commerce from $10.00 to $11.00 and gave the company a “hold” rating in a research report on Friday, October 23rd. Morgan Stanley lowered their target price 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. JPMorgan Chase & Co. raised their target price 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. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Lightspeed Commerce in a research note on Thursday, October 15th. Four investment 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 MarketBeat.com, Lightspeed Commerce presently has a consensus rating of “Hold” and a consensus price target 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.