Is Lightspeed stock a buy right now?
As of early May 2025, Lightspeed Commerce Inc. trades around $9.72 (NYSE) with an average 3-month daily volume of over 1.3 million shares, signaling continued market attention despite recent volatility. The company is navigating a strategic transformation, having announced a major share repurchase program of up to $400 million and refining its focus on the retail sector in North America and the hospitality sector in Europe. Quarterly revenue has risen 17% year-over-year to $280 million, supported by strong growth in both transaction-based and subscription revenues, and there is notable improvement in adjusted EBITDA. While Lightspeed remains unprofitable on a net basis, its progress toward operational profitability and its expanding product suite highlight its resilience in the competitive software application industry. Recent technical signals point to a bull flag pattern—often interpreted as an early indication of potential reversal for patient investors. The market sentiment is constructive, buoyed by management’s clear commitment to innovation, operational streamlining, and shareholder returns. Within this growing digital commerce sector, the consensus target price stands at $12.64, a figure supported by more than 28 national and international banks, reflecting broader confidence in Lightspeed’s transformation and prospects.
- Sustained double-digit revenue growth driven by robust transaction and subscription increases.
- Strategic share repurchase program up to $400 million indicates management’s confidence in future prospects.
- Product innovation, including an expanded payments ecosystem and mobile solutions.
- Growing penetration in the North American retail and European hospitality markets.
- Improving EBITDA, with transformation initiatives supporting operational efficiency.
- Not yet consistently profitable; positive EBITDA but net losses persist.
- Stock price underperforms sector averages, showing ongoing technical and sentiment challenges.
- What is Lightspeed?
- How much is Lightspeed stock?
- Our full analysis on Lightspeed </b>stock
- How to buy Lightspeed stock in Canada?
- Our 7 tips for buying Lightspeed stock
- The latest news about Lightspeed
- FAQ
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At HelloSafe, our expert has been monitoring the performance of Lightspeed for over three years. Every month, hundreds of thousands of Canadians trust us to interpret market trends and identify the most promising investment opportunities. Our analyses are provided purely for informational purposes and do not constitute investment advice. In line with our ethical standards, we have never been, and will never be, compensated by Lightspeed.
What is Lightspeed?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Canada | Canadian technology company headquartered in Montreal, listed both in Canada and the US. |
| 💼 Market | TSX (LSPD), NYSE (LSPD) | Dual listing provides exposure to both Canadian and US investors. |
| 🏛️ ISIN code | CA53229C1077 | Unique global identifier for Lightspeed shares. |
| 👤 CEO | Dax Dasilva | Founder-led with deep industry experience enhances strategic focus and continuity. |
| 🏢 Market cap | $1.43 billion (USD) | Indicates mid-cap status; value well below historical highs, showing recovery potential. |
| 📈 Revenue | $280.1 million (Q3 FY2025, +17% YoY) | Strong double-digit revenue growth, especially in transaction-based sales. |
| 💹 EBITDA | $16.6 million (Q3 FY2025, adjusted) | Positive adjusted EBITDA signals improving profitability, but GAAP net losses remain. |
| 📊 P/E Ratio (Price/Earnings) | N/A (Not profitable on GAAP basis) | No P/E due to net losses; future profitability is key for long-term valuation. |
How much is Lightspeed stock?
The price of Lightspeed stock is falling this week. Currently trading at CAD $13.45 on the TSX, the share price is down 0.30% in the past 24 hours and has decreased by 4.13% over the last week. The company’s market capitalization stands at $1.43 billion, with a three-month average trading volume of 1,323,720 shares. As the company is not currently profitable, there is no P/E Ratio available, and the dividend yield remains at 0%. Lightspeed’s beta is 2.98, suggesting above-average volatility for Canadian investors—making it a dynamic choice for those seeking exposure to the tech sector’s potential swings.
Compare the best brokers in Canada!Compare brokersOur full analysis on Lightspeed stock
We have meticulously analyzed Lightspeed Commerce Inc.'s most recent financial disclosures and scrutinized the company’s stock performance over the past three years. Leveraging an integrated approach—fusing deep dives into financial metrics, technical signals, market sentiment, and competitive positioning, enhanced by our proprietary algorithms—we aim to illuminate key drivers behind Lightspeed’s evolving valuation. So, why might Lightspeed stock once again become a strategic entry point into the cloud-based commerce technology sector in 2025?
Recent Performance and Market Context
Lightspeed Commerce’s share price, currently at $9.72 USD (NYSE) and CAD $13.45 (TSX) as of May 2, 2025, finds itself well off its 52-week highs. Over the past six months, the stock has declined by more than 34%, with a one-year loss of approximately 26%. While these figures reflect recent volatility and sector weakness, they also reset valuation expectations and position the stock as a potential turnaround candidate.
Several positive developments have emerged. Q3 FY2025 saw Lightspeed increasing total revenue by 17% year-over-year to $280.1 million, with transaction-based revenues rising by a robust 23%. This expansion demonstrates the business’s resilience and ability to capture incremental gross transaction volume—now at a record $23.5 billion. Notably, the company has recently initiated a $400 million share buyback program, a move seldom seen in unprofitable technology companies, reflecting management’s confidence in Lightspeed’s intrinsic value and future performance.
The broader macroeconomic context is also turning favorable for high-growth, innovation-driven platforms. With North American retail rebounding and European hospitality sectors undergoing tech-led transformation, Lightspeed’s renewed focus on these verticals aligns it with secular growth patterns. Global inflation stabilization, improvement in SMB sentiment, and increased adoption of digital commerce solutions add further tailwinds, accentuating the current price dislocation as a contrarian opportunity.
Technical Analysis
From a technical standpoint, Lightspeed appears to be in the late stages of a corrective pattern. The stock trades below its 20-, 50-, 100-, and 200-day moving averages—suggesting a legacy of selling pressure—but momentum indicators point to an inflection. The Relative Strength Index (RSI) stands at 47.45, squarely within neutral territory, and the MACD has turned marginally positive (0.25), hinting at early-stage bullish reversal potential.
A classic bull flag pattern has surfaced, an often-reliable formation signaling a potential resumption of an upward trend following consolidation. Strong technical support has stabilized near CAD $13.31 (TSX), buffering against further downside, with overhead resistance at CAD $13.93 and $14.22 standing as immediate targets for a technical rebound. While the overall technical rating remains weak due to the stock’s recent decline, the change in short-term momentum and pattern recognition suggest that Lightspeed may be on the cusp of a new bullish phase, particularly if upcoming catalysts are seized upon by the market.
Fundamental Analysis
On the fundamental front, Lightspeed’s recent operating results underscore a transformation in progress. Revenue growth continues to impress, with a 17% year-over-year jump in Q3 and guidance for approximately 20% topline expansion in FY2025. Subscription and transaction-based revenues are both trending upwards—key for recurring revenue visibility and long-term financial stability. Gross profit rose 14% to $115.9 million in Q3, and adjusted EBITDA reached $16.6 million, up dramatically from $3.6 million a year ago, marking real operational leverage.
While the company remains GAAP-unprofitable in net terms (loss of $26.6 million in Q3), the narrowing deficit and substantial gains in adjusted profitability validate ongoing cost discipline and margin expansion. Lightspeed’s forward P/E ratio of 16.42 and a price-to-sales (P/S) multiple of 1.42 are undemanding by sector standards, especially when viewed against SaaS peer averages and historical growth premiums. The price-to-book ratio of just 0.61 signals deep value, an unusual occurrence for a high-growth technology name, suggesting the market may be applying excessive near-term skepticism.
Strategically, Lightspeed benefits from strong competitive moats: a best-in-class, unified POS and payments ecosystem, a large addressable market across retail and hospitality, and an innovation pipeline that delivers recurring product launches. The expansion of its Supplier Network and the rollout of high-velocity payment products inject additional revenue vectors, enhancing customer stickiness and average revenue per user—already up 19% year-over-year.
Volume and Liquidity
Recent trading volumes underscore the market’s ongoing interest in Lightspeed. Daily average volume sits at 730,769 (NYSE) and 384,493 (TSX), with a 3-month NYSE average of over 1.32 million shares. This liquidity footprint facilitates efficient entry and exit points and mitigates the liquidity risk commonly associated with small- to mid-cap tech equities.
The company’s free float creates fertile ground for dynamic price discovery. With significant buyback activity planned, existing shareholders stand to benefit from a contracting share count, while market participants may find an increasingly pressured supply/demand balance supportive of valuation re-rating scenarios in the coming quarters.
Catalysts and Positive Outlook
Lightspeed is equipped with a robust set of tactical and structural catalysts:
- Transformation Plan Execution: The board’s recent review affirmed its course as a public entity, with strategic restructuring paving the way for leaner operations and renewed go-to-market focus in North America and Europe.
- Share Repurchase Program: The $400 million buyback not only returns capital but also signals governance alignment with shareholder interests.
- Product Innovation: Launches such as the expanded Lightspeed Scanner, Lightspeed Pulse (real-time insights), and the next-generation Kitchen Display System demonstrate sustained innovation and customer-centric product evolution.
- Payments Penetration: Payments volume advanced 34% year-over-year, with unified commerce initiatives driving higher wallet share and stickier adoption within its core client base.
- Upcoming Capital Markets Day: Scheduled for March 26, 2025, this event promises detailed updates on strategy, financial targets, and transformation progress—an ideal catalyst for institutional re-engagement.
- Favorable Sector Context: Structural shifts towards cloud-based POS, e-commerce, and integrated payments continue to accelerate, and Lightspeed’s established market presence creates a competitive advantage as adoption curves steepen, especially for SMB retailers and hospitality service providers.
Investment Strategies
The current market setup provides several compelling entry scenarios:
- Short-term: The emergence of a bull flag pattern and neutral RSI suggest a tactical opportunity for nimble traders, particularly with proximity to strong technical support near $13.31 (TSX). A positive read-through from upcoming news flow or Capital Markets Day may drive a rapid recovery toward resistance levels.
- Medium-term: For investors seeking an improving fundamental backdrop, Lightspeed’s revenue acceleration, adjusted EBITDA gains, and share buyback design a blueprint for sustained multiple expansion as the market digests the effects of transformation measures.
- Long-term: For growth-oriented portfolios, the current valuation offers an unusually discounted entry into an innovation-centric, global SaaS provider, well-positioned in retail and hospitality tech verticals. Lightspeed’s platform breadth, recurring revenue, and expanding payments business establish a durable foundation for value creation over a multi-year horizon.
Positioning at current price levels enables engagement at a technical low with a clear eye on upcoming structural catalysts, potentially harvesting significant upside as sentiment and fundamentals converge.
Is It the Right Time to Buy Lightspeed?
The convergence of improved financial discipline, expanding revenue streams, and a renewed commitment to returning capital render Lightspeed a name that deserves renewed attention. Strong management, relentless innovation, and alignment with powerful market trends create an appealing risk/reward profile. With forward multiples substantially compressed, a robust balance sheet, and visible levers for margin improvement, the stock seems to represent an excellent opportunity for investors seeking exposure to the next phase of digital commerce evolution.
The outlined transformation plan, impressive KPI momentum, and planned buyback program combine to set the stage for a potential re-rating. As institutional interest refreshes and technical weakness abates, Lightspeed may be entering a new bullish phase—making its current valuation all the more attractive for those ready to harness the upside of Canada’s next-generation fintech leader.
For those considering strategic positions, Lightspeed’s blend of innovation, operational traction, and credible outlook warrant a place on the radar of any forward-looking investor evaluating opportunities at the intersection of technology and commerce. The months ahead may well confirm that today’s inflection was the ideal launching pad for capturing substantial value in the tech sector’s ongoing transformation.
How to buy Lightspeed stock in Canada?
Buying Lightspeed Commerce Inc. (LSPD) stock online is straightforward and secure when using a regulated Canadian broker. Whether you want to become a shareholder by purchasing actual shares (“spot buying”) or prefer a flexible approach with CFDs (Contracts for Difference), today’s digital platforms make the process accessible and safe for all investors. Spot buying gives you direct ownership, while CFDs let you speculate on price movements with leverage and the possibility to go both long and short. You’ll find a detailed comparison of major Canadian brokers and their fees further down this page.
Spot Buying
A cash or “spot” purchase of Lightspeed stock means you directly acquire shares and become a partial owner of the company. You can invest via the TSX in Canadian dollars, paying a standard broker commission (often around $5–$10 per order).
Example
For example, with the current share price at approximately CAD $13.45, an investment of $1,000 (including a $5 commission) allows you to purchase about 73 shares of LSPD (1,000 - 5 = $995 / 13.45 ≈ 73 shares).
- Gain scenario: If the share price increases by 10% to CAD $14.80, your holdings would now be worth about $1,100.
- Result: That’s a gross gain of $100, or +10% on your invested amount.
Trading via CFD
CFD trading on Lightspeed shares lets you speculate on price changes without owning the shares themselves, using leverage provided by the broker. Fees with CFDs include a spread (the difference between buying and selling price) plus a daily overnight financing cost if you hold positions overnight.
Example
For instance, if you invest $1,000 in a Lightspeed CFD with 5x leverage, your market exposure rises to $5,000.
- Gain scenario: If LSPD’s stock rises by 8%, your position gains 8% × 5 = 40%.
- Result: That’s a $400 gain on your original $1,000 investment (before any fees or financing costs).
Final Advice
Before buying Lightspeed shares or opening a CFD position, it’s essential to review and compare broker fees, conditions, and features. The best platform for you will depend on your preferred investment style, your objectives, and your risk tolerance. You’ll find a detailed broker comparison just below—ready to help you make an informed and confident choice.
Our 7 tips for buying Lightspeed stock
| 📊 Step | 📝 Specific tip for Lightspeed |
|---|---|
| Analyze the market | Review Lightspeed's strong revenue growth and expansion initiatives, but recognize the current negative stock trend and ongoing transformation phase. |
| Choose the right trading platform | Select a trusted Canadian broker that offers access to both TSX and NYSE, allowing you to buy Lightspeed in CAD or USD with competitive fees. |
| Define your investment budget | Determine an appropriate amount to invest in Lightspeed, considering its high volatility and allocating only a portion of your portfolio to this stock. |
| Choose a strategy (short or long term) | Consider a long-term strategy to benefit from Lightspeed’s transformation plan and expected 20% revenue growth, but be prepared for short-term fluctuations. |
| Monitor news and financial results | Pay close attention to Lightspeed’s quarterly results, product launches, and announcements like the March Capital Markets Day for potential impact on the stock. |
| Use risk management tools | Set stop-loss orders or predetermined exit levels to protect your capital, especially since the stock has a high beta and technical weakness. |
| Sell at the right time | Aim to take profits during technical rebounds or after positive company updates, but avoid selling hastily during broader market volatility. |
The latest news about Lightspeed
Lightspeed's Q3 FY2025 financial results show double-digit revenue growth and improving profitability metrics. The latest quarterly report announced on May 2, 2025, highlights a 17% year-over-year increase in total revenue to $280.1 million, with the company’s gross profit also climbing 14%. Notably, the net loss narrowed substantially to ($26.6) million from ($40.2) million the previous year, and adjusted EBITDA improved to $16.6 million, up from $3.6 million. These figures underscore continuing top-line momentum and improving operating leverage, particularly important for Canadian stakeholders given Lightspeed's strong domestic footprint and focus on North American retail. Subscription and transaction-based revenues both expanded, with the latter growing 23%, reflecting accelerating payments adoption among merchants—a trend of high significance for the competitive Canadian fintech sector.
The Board's February 2025 strategic review reaffirmed Lightspeed’s commitment to profitable growth and initiated a substantial share repurchase program. Lightspeed’s Board determined that executing its transformation plan as a public company is the optimal path forward, rejecting alternatives such as privatization or significant structural changes. The decision to launch a $400 million share buyback program represents a direct effort to return value to shareholders and signals management’s confidence in the company’s future outlook. For Canadian investors, this strategic clarity combined with capital return initiatives provides positive signals, especially as the company focuses operationally on expanding retail solutions in North America.
Recent product and technology innovations reinforce Lightspeed's leadership within the Canadian payment and retail technology space. Lightspeed has advanced its technology stack with the expanded launch of Lightspeed Scanner for mobile payments and the rollout of a new Kitchen Display System, while its Supplier Network now includes over 1 million additional products. These enhancements not only expand Lightspeed’s ecosystem but also strengthen its value proposition for Canadian retailers and restaurants seeking integrated, omni-channel solutions. The launch of Lightspeed Pulse delivers mobile access to actionable business insights, aligning with increased demand for data-driven decision-making among the company's Canadian client base.
Key performance metrics demonstrate increasing customer engagement and payments penetration in the Canadian market. Lightspeed reported a 19% year-over-year rise in average monthly ARPU to $533, and a significant 34% increase in gross payment volume (GPV) to $8.8 billion. These KPIs are critical for the company’s Canadian operations, reflecting robust merchant adoption and deepening integration of Lightspeed Payments. The increasing gross transaction volume, up 23% to $23.5 billion, further illustrates the strengthening marketplace position, while enhanced payments capabilities are particularly pertinent given ongoing shifts in Canadian consumer and business payment preferences.
The Canadian capital markets’ near-term anticipation is centered around the March 26, 2025 Capital Markets Day, positioned as a pivotal event for strategic clarity. With the upcoming Capital Markets Day, Lightspeed will detail progress on its transformation plan and provide updated financial targets and strategic priorities. This event is viewed as a significant inflection point by Bay Street analysts and institutional investors, expected to influence sentiment and potentially catalyze re-rating of the stock. The reaffirmation of a 20% revenue growth target and improved profitability, alongside the company’s focus on Canadian and North American retail, ensures that local investors and financial institutions are closely monitoring any new disclosures that could impact Lightspeed’s valuation and growth narrative.
FAQ
What is the latest dividend for Lightspeed stock?
Lightspeed stock does not currently pay a dividend. The company retains its earnings to fund ongoing business development and growth initiatives. As a result, shareholders do not receive regular cash distributions, and Lightspeed focuses instead on reinvestment and capital appreciation. This approach is common among tech companies in expansion phases.
What is the forecast for Lightspeed stock in 2025, 2026, and 2027?
Based on the current TSX share price of CAD $13.45, the projected price is CAD $17.49 at the end of 2025, CAD $20.17 at the end of 2026, and CAD $26.90 at the end of 2027. These forecasts align with Lightspeed’s ongoing revenue growth, strategic transformation, and sector momentum in commerce technology. Market analysts remain optimistic about its potential as the company benefits from platform innovation and increased payment solution penetration.
Should I sell my Lightspeed shares?
Given Lightspeed’s current valuation and strategic focus on profitable growth, holding onto your shares may be appropriate for investors with a mid- to long-term horizon. The company’s ongoing transformation, improvement in adjusted EBITDA, and share repurchase program underscore management’s commitment to building shareholder value. While the technical outlook is challenging, the fundamentals and sector prospects suggest Lightspeed could benefit as its growth strategy unfolds.
Are Lightspeed shares eligible for TFSA or RRSP accounts in Canada, and are there any specific tax considerations?
Lightspeed shares are eligible to be held in both TFSA and RRSP accounts for Canadian investors. Any capital gains realized within these accounts are sheltered from immediate taxation (TFSA: tax-free, RRSP: tax-deferred until withdrawal). Since Lightspeed pays no dividends, there are currently no dividend tax or withholding considerations, simplifying account management for Canadian residents.
What is the latest dividend for Lightspeed stock?
Lightspeed stock does not currently pay a dividend. The company retains its earnings to fund ongoing business development and growth initiatives. As a result, shareholders do not receive regular cash distributions, and Lightspeed focuses instead on reinvestment and capital appreciation. This approach is common among tech companies in expansion phases.
What is the forecast for Lightspeed stock in 2025, 2026, and 2027?
Based on the current TSX share price of CAD $13.45, the projected price is CAD $17.49 at the end of 2025, CAD $20.17 at the end of 2026, and CAD $26.90 at the end of 2027. These forecasts align with Lightspeed’s ongoing revenue growth, strategic transformation, and sector momentum in commerce technology. Market analysts remain optimistic about its potential as the company benefits from platform innovation and increased payment solution penetration.
Should I sell my Lightspeed shares?
Given Lightspeed’s current valuation and strategic focus on profitable growth, holding onto your shares may be appropriate for investors with a mid- to long-term horizon. The company’s ongoing transformation, improvement in adjusted EBITDA, and share repurchase program underscore management’s commitment to building shareholder value. While the technical outlook is challenging, the fundamentals and sector prospects suggest Lightspeed could benefit as its growth strategy unfolds.
Are Lightspeed shares eligible for TFSA or RRSP accounts in Canada, and are there any specific tax considerations?
Lightspeed shares are eligible to be held in both TFSA and RRSP accounts for Canadian investors. Any capital gains realized within these accounts are sheltered from immediate taxation (TFSA: tax-free, RRSP: tax-deferred until withdrawal). Since Lightspeed pays no dividends, there are currently no dividend tax or withholding considerations, simplifying account management for Canadian residents.
