After completing a strategic review of its business and operations, Montréal-based Lightspeed Commerce has announced plans to stay public and execute “a full transformation plan.”
Lightspeed’s transformation plan involves focusing on two “leading growth engines” for the company: retail in North America and hospitality in Europe. The company intends to expand the number of locations it serves, increase software and payments penetration, and optimize other areas of the company’s business for efficiency.
Lightspeed plans to buy back up to $400 million USD worth of its shares from investors.
Lightspeed said its board, a committee of independent directors, and executive leadership unanimously reached this decision, noting that this strategy “presents the best available path to maximizing value” for both the firm and its shareholders.
The point-of-sale and commerce technology company confirmed this strategic review in September 2024 following reports that it was exploring options including a potential sale that might have seen it join the growing ranks of Canadian tech firms exiting public markets. Today’s announcement, which came alongside the release of Lightspeed’s fiscal third-quarter 2025 earnings, indicates that a go-private deal or acquisition is not on the immediate horizon.
As part of its transformation plan, Lightspeed intends to free up capital to invest in growth areas and conduct a share repurchase program to return up to $400 million USD in cash to shareholders. The company already had authorization to buy back $100 million of shares and intends to do so immediately, while also expanding the program by an additional $300 million, subject to market conditions.
In a letter to shareholders, Lightspeed founder and CEO Dax Dasilva indicated that profitable growth remains the firm’s top priority. Going forward, Lightspeed intends to prioritize product and go-to-market investments in its two key growth markets, North American retail and European hospitality.
RELATED: Lightspeed confirms strategic review of business as company reportedly explores sale
According to The Globe and Mail, Lightspeed’s largest shareholder, the Caisse de dépôt et placement du Québec, gave the move a nod of approval. But investors more broadly have not reacted favourably to the news: as of publication time, Lightspeed’s share price has dropped approximately 16 percent since markets closed yesterday.
Lightspeed intends to hold its rescheduled Capital Markets Day on March 26 to provide a more comprehensive update on its transformation plan and its operational and financial impact. The company previously postponed the event last fall due to its strategic review.
Founded in 2005, Lightspeed sells point-of-sale and commerce software and hardware to restaurants, retailers, and hospitality providers. The company is dual-listed on the Toronto Stock Exchange and the New York Stock Exchange under the symbol ‘LSPD.’
Lightspeed’s stock has fallen approximately 90 percent from its COVID-19 pandemic high in September 2021 amid the broader tech downturn, a drop fuelled at least in part by a short-seller report critical of some of Lightspeed’s metrics. Since then, the company has sought to strike the right balance between revenue growth and profitability to woo investors.
RELATED: Lightspeed lays off 200 employees in second restructuring of the year
Lightspeed’s strategic review shortly followed founder Dasilva’s return as CEO in February 2024 in response to shareholder feedback. Lightspeed board chair Patrick Pichette, who led the board committee overseeing the review, said in a statement that Lightspeed received a high level of interest and had extensive acquisition discussions with several potential suitors before deciding to remain a public company.
Dasilva said over the past year since he returned as CEO, Lightspeed has accelerated its software growth, improved payments penetration, established “a solid foundation for profitability,” maintained a strong balance sheet, and focused on areas where the company is confident that it can win.
Lightspeed had extensive acquisition discussions with several potential suitors before deciding to remain a public company.
Lightspeed laid off 200 employees, or approximately seven percent of its staff, in December as part of its second restructuring of 2024.
During fiscal Q3 2025, for the three months ending Dec. 31, 2024, Lightspeed generated $280 million in revenue, a 17 percent rise year-over-year at the low end of the $280-million to $285-million range it forecast in fiscal Q2.
Lightspeed’s net loss in fiscal Q3 was $26.6 million, down from $40.2 million during the same period last year. The company also grew its adjusted earnings before income, taxes, depreciation, and amortization (EBITDA) to $16.6 million, up from $3.6 million year-over-year and ahead of its previous forecast of $14 million. Lightspeed held $661.6 million in cash and cash equivalents at the end of fiscal Q3.
These results put Lightspeed on track to surpass its latest outlook for fiscal 2025. The company now expects to post revenue growth of approximately 20 percent and adjusted EBITDA of over $53 million in fiscal 2025.
Feature image courtesy Lightspeed Commerce.