Lightspeed Commerce Inc. Subordinate Voting Shares (LSPD)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Lightspeed with Graham's caution and Buffett's preference for understandable, cash-generating businesses. It sells cloud software and payment tools to retailers and restaurants—a useful niche with recurring revenue, but the field is crowded and the company has not yet proven pricing power or a wide moat. In fiscal Q2 2026, revenue was $322.7 million, but net income was -$2.4 million, a -0.75% margin. The supplied trailing EPS is -$0.71; FairStock's ROE is -6.65% and ROCE is -4.00%, so the business is consuming capital, not compounding it. Free cash flow is -$21.8 million, a -1.7% FCF yield. The balance sheet is a redeeming feature: debt-to-equity is 0.01, and at the 2026-10-13 close of $10.68, FairStock's P/B is 0.99. However, FairStock's EV/EBITDA is 63.83, Altman Z is 2.26, and Piotroski F-Score is 5/9—fair, not fortress-like. Revenue growth of 5.82% is modest; profit growth of 95.12% is improvement from a negative base. FairStock Score is 47/100, and the Lynch category is none because there are not enough filed years. Beta of 1.80 means Mr. Market can move this sharply. My conclusion: a fairly valued, unproven turn-around. The price near book value limits downside if cash flow turns, but negative cash generation means there is no margin of safety yet.

In plain English: Lightspeed sells cloud software and payment tools to shops, restaurants, and other merchants. The business is growing sales slowly and is not yet making money or positive cash flow, though it has very little debt. At $10.68 on 2026-10-13, the stock trades near its accounting value, so the price looks fair rather than clearly cheap or expensive.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer