One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Lightspeed Commerce Inc.
LSPD · NYQ · Technology · Software - Application
Current price
$9.66
52-week range
$7.83 - $14.34
Market cap
$1.33B
Balance sheet
Healthy
-116.30x Concerning
Net cash $433.74M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
1 Risk
1 rewards · 1 risks
- Reward Revenue grew 14.0% last year.
- Risk Return on equity was -9.2% last year — the company lost money on shareholders' equity.
What this company does
Lightspeed Commerce Inc.
Lightspeed provides an all-in-one operating system for small businesses like shops and restaurants, helping them manage everything from sales and inventory to processing customer payments. The company makes most of its money through recurring revenue (income that is predictable and repeats, like a monthly software fee) and by taking a small percentage of each transaction it handles. This matters because as businesses grow and rely more on Lightspeed's tools, it becomes harder for them to switch to a competitor, creating a stable and growing customer base.
How the company got here
Lightspeed was started in 2005 in Montreal by Dax Dasilva, who wanted to create a better, easier-to-use sales and inventory system for local retail shops. Initially, the company focused on creating software for Apple's Mac computers, which were popular with boutique stores. A key turning point was the launch of an iPad app in 2011, which took advantage of the growing popularity of mobile devices in business. Over the years, Lightspeed expanded from just retail to also serve restaurants and golf courses, often by acquiring other software companies. The company went public on the Toronto Stock Exchange in 2019, which provided money to grow even faster.
What it actually does
Imagine you're at a local coffee shop or boutique. The tablet the cashier uses to ring you up, the system that tracks the store's inventory of coffee beans or dresses, and the software that lets you order ahead online could all be run by Lightspeed. Lightspeed provides a complete toolkit for small and medium-sized businesses, primarily in retail, restaurants, and golf, to manage their day-to-day operations. This includes the point-of-sale (POS) system (the modern version of a cash register), tools for managing inventory, processing payments, creating an online store, and understanding sales data. The goal is to bring all these different tasks together into one connected system, making it easier for business owners to run and grow their business.
Subscription-Based Services
This is a major way Lightspeed makes money, similar to how you might pay for a streaming service like Netflix. Businesses pay a recurring fee, usually monthly, to use Lightspeed's software platform. This gives them access to the core point-of-sale system and other tools to manage their inventory, staff, and sales reports. The exact price can vary depending on how many locations the business has and which advanced features they need. This provides a steady and predictable stream of revenue (money coming into the company) for Lightspeed.
Transaction-Based Revenue
This is the largest and fastest-growing part of Lightspeed's business. When a customer pays for their meal or product using a credit or debit card, Lightspeed's payment processing service, called Lightspeed Payments, handles the transaction. For each sale, Lightspeed takes a small percentage as a fee. The company also offers financial solutions like cash advances to its customers, which provides another source of transaction-based income.
Hardware and Other Services
While software is its main focus, Lightspeed also sells the physical equipment that businesses need to run their system. This includes things like iPads, receipt printers, cash drawers, and credit card terminals. The company also earns money from installation and other one-time services to help new customers get set up. This is a smaller part of the company's overall business compared to software and payments.
What management is betting on now
The company is currently focused on a strategy of profitable growth, with a particular emphasis on two key areas: retail businesses in North America and restaurants and hotels in Europe. Management believes these are the markets where their products are the strongest and have the best chance to win against competitors. A major priority is to get more customers to use their Lightspeed Payments service, as this is a very profitable part of the business. They are also investing in new technologies like artificial intelligence (AI) to help their customers with things like predicting what inventory to order.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value — vs current price $9.66
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $433.7M - more cash than debt. Interest coverage -116.3x.
Net debt
$-433.74M
Interest coverage
-116.30x
Lightspeed Commerce Inc. is healthier than 0 of 1 peers on balance-sheet leverage.
Healthy
Worse cushion
Baseline
Better cushion
LSPD
BASELINE
Lightspeed Commerce Inc.
Total debt $20.16M Interest coverage -116.30x This is the baseline the peer rows are being compared against.
What you should know
The case for and against LSPD
1 Reward
1 Risk
Rewards
-
Revenue grew 14.0% last year.
Risks
-
Return on equity was -9.2% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
10.55x
P/B
0.90x
P/S
1.08x
EV/EBITDA
-22.83x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
42.9%
Operating margin
-11.5%
Net margin
-11.8%
ROE
-9.2%
ROA
-4.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
4.28x
Quick ratio
3.19x
Total debt
$20.16M
Total cash
$453.91M
Growth
How the business has been compounding
Revenue TTM
$1.23B
Revenue 5Y CAGR
18.9%
EPS TTM
-1.04
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$55.46M
Free CF TTM
$-3.93M
FCF margin
-0.3%
Dividend
Shareholder payout
Yield
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Payout ratio
0.0%
Last ex-div date
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