Start here if you're new
what it is
It sells software and payment tools that help stores and restaurants run sales, inventory, and checkouts from one system.
how it gets paid
Last year Lightspeed Commerce made $1.1B in revenue.
why it's growing
Revenue grew 18.4% last year. Revenue rose 18.4% vs. prior year, and gross margin held at 41.8%.
what just happened
Lightspeed posted $1.1B in annual revenue, but FY2024 EPS stayed at -$1.48.
At a glance
n/a balance sheet
40/100 earnings predictability — expect surprises
-$1.48 fy2024 eps est
$1B fy2024 rev est
2.0 beta
xvary composite: 58/100 — below average
What they do
It sells software and payment tools that help stores and restaurants run sales, inventory, and checkouts from one system.
You do not rip out the checkout system for fun. Lightspeed ties sales, payments, inventory, and operations together, so leaving means rebuilding the store's nerve center. The absurd part is the math: $1.1B in annual revenue with 41.8% gross margin means the platform works, even while profits lag.
How they make money
$1.1B
annual revenue · their business grew +18.4% last year
total revenue
$1.1B
+18.4%
The products that matter
point-of-sale and commerce software
Unified Commerce Platform
$312.3M quarter · +11% from a year ago
This is the core engine. It produced $312.3M in Q3 fiscal 2026 revenue, and 11% growth says demand did not disappear even after the stock did.
core engine
payment facilitation
Payments Processing
bundled with 43% company gross margin
Payments ties more merchants to the product set. It also pulls the margin profile closer to payments economics than pure software economics. If you want the whole story, start with that trade-off.
margin trade-off
hardware and ancillary revenue
Hardware & Other
$33M · roughly 3% of annual revenue
This segment is small next to the $1.07B software and payments business. It matters less for growth than for merchant setup and day-to-day retention.
small but useful
Key numbers
$1.1B
annual revenue
That is larger than the stock's roughly $1B market cap. You are paying about 0.9x sales for a company still losing money.
41.8%
gross margin
Gross margin means the share left after direct costs. Lightspeed keeps 41.8 cents of each dollar before overhead.
-$1.48
fy2024 eps
Each share lost $1.48 last year. Revenue grew 18.4%, but profit did not show up.
2.0
beta
Beta means market swing versus the index. At 2.0, your stock tends to move about twice as much as the market.
Financial health
n/a
strength
- balance sheet grade n/a
- risk rank 3 — safer than 50% of stocks
- price stability 10 / 100
n/a — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for LSPD right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Lightspeed posted $1.1B in annual revenue, but FY2024 EPS stayed at -$1.48.
Revenue rose 18.4% vs. prior year, and gross margin held at 41.8%. The bill still showed up at the bottom line, where profits stayed negative.
$1.1B
revenue
-$1.48
eps
41.8%
gross margin
the number that mattered
Revenue at $1.1B matters because it is now about the size of the company's roughly $1B market cap.
source: company annual report, 2025
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
Lightspeed's risk profile is unusually specific: a company with roughly $1B in annual revenue, a 43% gross margin, and a $33.6M quarterly loss does not have much room for sloppy execution.
med
profitability keeps moving out
The company lost $33.6M last quarter on $312.3M in revenue. At this size, investors expect the path to profit to get clearer, not foggier.
If losses persist while growth cools, the stock stops looking early and starts looking stuck.
med
gross margin drifts the wrong way
Gross margin sits at 43%. That is already light for software. A move toward 40% would tell you payments mix, pricing pressure, or both are getting worse.
That would make the whole turnaround harder to defend because there is less gross profit available to cover operating costs.
med
competition keeps the economics ordinary
Point-of-sale and payments is a crowded category. Switching costs exist, but not enough to let weak margins hide for long.
If competitors force pricing concessions or higher sales spend, you can get revenue growth without much shareholder value.
med
volatility outruns the fundamentals
This stock carries a 2.0 beta and a 10 / 100 price-stability score. That means sentiment can swing much faster than the business changes.
If you own it, you need the operating proof to catch up before the market loses patience again.
The kill criteria are straightforward. If gross margin slips below 40%, revenue growth drops below 10% from a year ago, or fiscal 2026 fails to produce positive free cash flow, the turnaround case gets materially weaker.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings date
Q4 and full-year fiscal 2026 results
This is where management needs to convert a raised outlook into harder proof. Another decent quarter is nice. Clean cash generation matters more.
margin
gross margin holding at 43% or better
A sustained move below 40% would tell you mix or pricing is worsening. That is a direct threat to the entire valuation case.
growth
revenue staying in the low-double-digit zone or better
Last quarter grew 11% from a year ago. If that slips while losses remain, you get the worst combo in software: slower growth and no earnings.
cash flow
positive free cash flow in fiscal 2026
Management expects it. If you do not get it, the market will treat this as a longer turnaround rather than a business nearing proof.
Analyst rankings
earnings predictability
40 / 100
This score says the company does not produce especially steady earnings. In human-speak, you should expect more variance here than in a mature software name.
average price target
$13.33
Consensus sits only modestly above the current $12.30 price. In human-speak, the street is not calling for a breakout. It is waiting for cleaner execution.
source: institutional data
Institutional activity
institutional ownership data for LSPD is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$12
current price
n/a
target midpoint · n/a from current
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive