Canada's Lightspeed Q2 revenue slightly beats estimates on platform adoption

Overview

• Canada commerce platform's Q2 revenue grew 15% organically, slightly beating analyst expectations

• Adjusted EPS for Q2 missed analyst expectations

• Company undertook further reorganization and cost reduction initiatives after quarter end

Outlook

• Company sees Q3 revenue of $310 mln to $320 mln, organic growth of 11%-15%

• Company expects FY27 revenue of $1.225 bln to $1.265 bln, organic growth of 12%-15%

• Company maintains target of $95 mln adjusted free cash flow for FY28

Result Drivers

• PLATFORM ADOPTION - Co said growth was driven by increased use of its POS, payments and AI-driven tools by complex, multi-location retailers and restaurants

• GROWTH ENGINES - Retail in North America and hospitality in Europe saw revenue and payment volume gains, supporting overall growth

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy."

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)