Lightspeed Commerce (NYSE:LSPD) Announces Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Lightspeed beat quarterly expectations: EPS was $0.13 versus the $0.11 consensus, while revenue rose 5.8% year over year to $322.7 million, exceeding estimates of $310.6 million.
• Underlying growth remained strong: Organic revenue increased 17%, growth-engine revenue rose 20%, and adjusted EBITDA reached $17.5 million. Management maintained its fiscal 2027 outlook for 12%–15% organic revenue growth and $75 million–$95 million in adjusted EBITDA.
• Profitability and outlook remain concerns: Gross margin fell to 43% due to product mix and temporary hardware costs, while fiscal 2027 revenue guidance trails analyst expectations. Shares rose 5.1%, supported by an $86 million quarterly buyback, but analysts maintain a consensus “Hold” rating.

Lightspeed Commerce (NYSE:LSPD - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $0.13 EPS for the quarter, topping the consensus estimate of $0.11 by $0.02, Briefing.com reports. Lightspeed Commerce had a negative net margin of 11.77% and a positive return on equity of 0.32%. The firm had revenue of $322.70 million for the quarter, compared to analysts' expectations of $310.58 million. During the same period in the previous year, the business earned $0.06 earnings per share. Lightspeed Commerce's revenue for the quarter was up 5.8% compared to the same quarter last year.

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

• Q1 revenue exceeded expectations: Organic revenue rose 17% year over year to $322.7 million, while growth-engine revenue increased 20% and adjusted EBITDA reached $17.5 million, within the company’s guidance.
• Software growth accelerated to 8%, software ARPU increased 6%, and payments penetration rose to 44% overall and 49% in growth engines. Transaction-based gross profit grew 23%, supported by higher payments adoption and a 56% increase in high-margin Lightspeed Capital revenue.
• Management highlighted strong demand among higher-value, multi-location customers and maintained its fiscal 2027 outlook for 12%–15% organic revenue growth and $75 million–$95 million of adjusted EBITDA.
• Lightspeed repurchased approximately $86 million of shares during the quarter, including 7 million shares canceled, and has roughly $150 million remaining under its broader buyback authorization.
• Total gross margin declined to 43% from 45% organically, primarily because of revenue mix and temporary hardware supply-chain and freight-cost pressures. Management expects hardware margins to improve in the second half of fiscal 2027, but adjusted free cash flow was negative $4.4 million in Q1 due partly to working-capital movements.

Lightspeed Commerce Stock Up 5.1%

Shares of NYSE:LSPD traded up $0.49 during midday trading on Friday, hitting $10.15. 809,111 shares of the stock were exchanged, compared to its average volume of 1,041,506. The company has a debt-to-equity ratio of 0.01, a quick ratio of 4.18 and a current ratio of 4.28. Lightspeed Commerce has a 52-week low of $7.83 and a 52-week high of $14.34. The business's fifty day simple moving average is $9.85 and its two-hundred day simple moving average is $9.65. The company has a market capitalization of $1.40 billion, a PE ratio of -9.87, a P/E/G ratio of 1.93 and a beta of 1.88.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of LSPD. Invesco Ltd. increased its position in Lightspeed Commerce by 2.9% during the second quarter. Invesco Ltd. now owns 29,567 shares of the company's stock worth $346,000 after acquiring an additional 835 shares during the period. Swiss National Bank boosted its holdings in Lightspeed Commerce by 1.6% in the 4th quarter. Swiss National Bank now owns 246,200 shares of the company's stock valued at $2,977,000 after purchasing an additional 3,900 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank grew its position in Lightspeed Commerce by 13.7% in the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 39,615 shares of the company's stock worth $458,000 after purchasing an additional 4,769 shares during the last quarter. Russell Investments Group Ltd. increased its holdings in shares of Lightspeed Commerce by 106.4% during the 2nd quarter. Russell Investments Group Ltd. now owns 10,386 shares of the company's stock worth $122,000 after purchasing an additional 5,354 shares during the period. Finally, Geode Capital Management LLC increased its holdings in shares of Lightspeed Commerce by 8.1% during the 2nd quarter. Geode Capital Management LLC now owns 78,301 shares of the company's stock worth $922,000 after purchasing an additional 5,834 shares during the period. 68.68% of the stock is owned by institutional investors and hedge funds.

More Lightspeed Commerce News

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

• Positive Sentiment: Lightspeed reported first-quarter fiscal 2027 revenue of $322.7 million, above the $310.6 million consensus estimate, while adjusted earnings of $0.13 per share exceeded expectations by $0.02 and improved from $0.06 a year earlier. Revenue increased 5.8% year over year. Lightspeed Announces First Quarter 2027 Financial Results
• Positive Sentiment: Management highlighted stronger underlying momentum, including 17% organic revenue growth, 12% organic gross-profit growth, and 20% year-over-year revenue growth across North American retail and European hospitality. The company also added approximately 1,300 net customer locations during the quarter. Lightspeed CEO breaks down Q1 growth
• Positive Sentiment: Lightspeed repurchased approximately $86 million of its shares during the quarter, potentially supporting per-share results and signaling confidence in the company’s valuation.
• Neutral Sentiment: Shareholders approved all proposals at the company’s July 30 annual and special meeting, removing any immediate governance uncertainty. Lightspeed Announces Voting Results
• Neutral Sentiment: Brokerage coverage remains cautious, with analysts carrying a consensus “Hold” recommendation. Consensus Hold Recommendation
• Negative Sentiment: Fiscal 2027 revenue guidance of approximately $1.2 billion to $1.3 billion trails the roughly $1.3 billion analyst consensus at the midpoint. Second-quarter revenue guidance of $316 million to $326 million is broadly in line with expectations, but the full-year range raised concerns about the pace of growth. Lightspeed Stock and Fiscal 2027 Guidance

Analyst Ratings Changes

Several equities analysts have recently issued reports on the stock. Morgan Stanley lowered their price objective on shares of Lightspeed Commerce from $13.50 to $11.50 and set an "equal weight" rating on the stock in a research note on Friday, May 22nd. Stifel Nicolaus reduced their target price on shares of Lightspeed Commerce from $12.00 to $10.00 and set a "hold" rating for the company in a report on Friday, May 22nd. Barclays decreased their price target on shares of Lightspeed Commerce from $12.00 to $11.00 and set an "equal weight" rating on the stock in a research report on Tuesday, April 21st. Bank of America began coverage on Lightspeed Commerce in a research report on Tuesday, May 19th. They set an "underperform" rating and a $10.00 price objective for the company. Finally, Truist Financial reduced their price objective on Lightspeed Commerce from $11.00 to $10.00 and set a "hold" rating for the company in a research note on Thursday, May 28th. Four equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $11.32.

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.

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