Lightspeed Shares Slide Despite Organic Revenue Growth
AI-generated image · Bay Street Wire
The retail tech firm met Q2 expectations and narrowed its net loss, but investors reacted negatively to modest overall sales growth.
Montréal-based Lightspeed Commerce reported fiscal second-quarter revenue of nearly $324 million USD ($454 million CAD), as BetaKit first reported. While the company met its earnings outlook, its stock price fell nearly 15 percent on the Toronto Stock Exchange, dropping to $13.77 CAD per share.
Lightspeed reported a net loss of $4.2 million USD ($0.03 per share) for the period ending Sept. 30, a significant improvement over the $32.7 million USD loss recorded in the same quarter last year. The company also posted adjusted EBITDA of $22.7 million USD.
Overall year-over-year revenue growth was 2 percent, a figure BetaKit notes was impacted by the April 2026 divestiture of the Upserve US hospitality line to Skyview Equity for up to $81 million USD. To provide a clearer picture of performance, Lightspeed highlighted a 15 percent organic revenue growth rate, with a 17 percent increase in its priority markets of North American retail and European hospitality.
CFO Asha Bakshani stated the company is focused on scaling these markets to achieve "sustained profitability and cash generation." This follows a broader transformation plan involving divesting non-core assets and reducing headcount. BetaKit reports that Lightspeed closed vacant positions and laid off employees last month, impacting 250 roles, following previous cuts earlier in the year.
Analysts suggest the stock's decline may be linked to a wider tech sector downturn, as the Nasdaq has fallen more than 11 percent this month.