Valued at a market cap of $2.2 billion, Lightspeed Commerce (TSX:LSPD) is a software program firm that gives cloud-based commerce platforms and cost options for retailers, eating places, golf programs, and different companies throughout a number of nations.
Its built-in platform permits omnichannel experiences, connecting suppliers, retailers, and shoppers by means of complete point-of-sale methods, stock administration, analytics, and cost processing.
Lightspeed presents specialised options, together with Lightspeed Restaurant for the hospitality business, Lightspeed Retail for commerce, and Lightspeed Golf for golf course operators.
The platform options multi-location connectivity, worker administration, buyer loyalty packages, and e-commerce capabilities. Moreover, Lightspeed presents monetary providers by means of Lightspeed Funds and Capital, in addition to {hardware} gross sales, together with tablets, printers, and equipment, together with set up providers to help enterprise operations.
The TSX tech inventory went public in 2019 and touched an all-time excessive in 2021. Right now, LSPD inventory is down virtually 90% from all-time highs.
Is Lightspeed inventory an excellent purchase proper now?
Lightspeed Commerce delivered combined leads to fiscal This autumn (resulted in March) whereas unveiling a complete transformation technique designed to drive sustainable, worthwhile development.
The fintech operator achieved its first US$1 billion income milestone in fiscal 2025 and delivered US$53.7 million in adjusted EBITDA (earnings earlier than curiosity, tax, depreciation, and amortization), an enchancment from US$1.3 million within the prior 12 months.
Lightspeed has strategically refocused on two core development engines the place it maintains aggressive benefits: North American retail and European hospitality. These markets symbolize a mixed US$80 billion whole addressable market, with near-term concentrate on US$21 billion in alternatives.
Lightspeed’s determination to pay attention efforts displays robust product-market match, evidenced by roughly 35% shut charges in each segments. Administration outlined aggressive growth plans, together with scaling the outbound gross sales capability to over 150 representatives and growing product growth spending by 35%.
The corporate targets 10–15% annual buyer location development and 20–25% gross revenue development over the following three years. Consolidated metrics embrace a 15–18% gross revenue CAGR (compounded annual development charge) and a 35% adjusted EBITDA CAGR by means of fiscal 2028.
Software program ARPU (common income per person) growth stays a key driver, rising 11% year-over-year in This autumn by means of module adoption and pricing optimization. Fee penetration reached 40% in April, with continued upside as new clients should undertake built-in cost options. Lightspeed’s NuORDER wholesale community, connecting retailers to over 4,000 manufacturers, creates vital aggressive differentiation and stickiness.
Regardless of macro headwinds impacting same-store gross sales, Lightspeed demonstrates operational resilience by means of its diversified platform method. It returned over US$130 million to shareholders by means of share repurchases and introduced extra buyback authorization, reflecting confidence within the strategic pivot.
Is the TSX tech inventory undervalued?
Analysts count on Lightspeed’s income to develop from US$1.1 billion in fiscal 2025 to US$1.6 billion in fiscal 2029. Comparatively, adjusted earnings are forecast to broaden from US$0.45 per share to US$1.14 per share on this interval.
Much like different asset-light tech shares, Lightspeed is positioned to profit from working leverage. Whereas income is forecast to develop by 10.5% yearly, earnings development is estimated at 26%.
If LSPD inventory is priced at 25 instances ahead earnings, which is affordable, it ought to commerce round US$28 in June 2028, indicating an upside potential of over 150% from present ranges.
With targeted market focus, enhanced product innovation, and disciplined capital allocation, Lightspeed seems well-positioned to seize market share in its focused segments whereas bettering profitability metrics over the three-year outlook interval.
