Montréal retail technology firm Lightspeed Commerce met its earnings outlook for fiscal Q2, but investors were still unimpressed.
The news: The point-of-sale and commerce tech company published its second-quarter financial results this morning, which showed that the company generated nearly $324 million USD ($454 CAD) in revenue. It posted a net loss of $4.2 million USD ($0.03 per share) in Q2—a far cry from the $32.7 million USD ($0.24 per share) it lost during the same period last year—while recording adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $22.7 million USD during the three-month period ending Sept. 30.
While Lightspeed’s Q2 sales represent year-over-year growth of just two percent, this figure and other comparisons to the same period last year were impacted by its April 2026 divestiture of Upserve’s US hospitality line to Skyview Equity for up to $81 million USD (a steep discount compared to the price it paid to purchase it back in 2020). Lightspeed’s stock ($LSPD) dropped nearly 15 percent on the day on the Toronto Stock Exchange.
From the source: Given that Upserve exit, Lightspeed pointed to the 15 percent year-over-year organic revenue growth it posted in fiscal Q2 as a more representative measure of the company’s health. Meanwhile, sales in Lightspeed’s two priority markets, retail in North America and hospitality in Europe, were up 17 percent. Lightspeed CFO Asha Bakshani said the firm remains focused on scaling in both and “translating that growth into sustained profitability and cash generation.”
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The context: Lightspeed’s stock price soared in 2021 during the early days of the pandemic, plummeted following a short-seller report, and has since struggled to regain its previous heights. Its transformation plan has the company refocusing on particular regions and verticals, divesting from non-core areas (it remains open to more such deals), and shedding staff. Last month, Lightspeed laid off employees and closed vacant positions, impacting 250 total roles; this restructuring followed other cuts earlier this year.
Final thought: Investors have not reacted favourably to the company’s latest earnings: as of publication time, Lightspeed’s stock had dropped to $13.77 CAD per share on the Toronto Stock Exchange, erasing all of its gains so far this year. That performance may be in part due to the broader rout in tech stocks; the Nasdaq is down more than 11 percent so far this month.
Feature image courtesy Lightspeed Commerce.