Retail-focused fintech company Lightspeed Commerce (LSPD, Financial) experienced a notable stock rise this week, increasing by 7.55%. This upward movement was driven by the company's impressive quarterly earnings performance, which exceeded analyst expectations for revenue and adjusted net income.
In its fiscal second quarter of 2025, Lightspeed reported revenue of over $277 million, marking a 20% increase from the previous year. The company's adjusted net income surged threefold to $19.9 million or $0.13 per share, outpacing estimates of $274 million in revenue and $0.11 per share earnings. Additionally, Lightspeed celebrated surpassing $1 billion in revenue on a trailing-12-month basis, attributing this achievement to new product launches and rapid innovation.
From a stock analysis perspective, Lightspeed (LSPD, Financial) is currently priced at $16.95, with a GF Value of $23.43, suggesting that the stock is modestly undervalued. For more details on its valuation, visit the GF Value page. The company also boasts a robust Altman Z-Score of 8.51, indicating strong financial health and a low probability of bankruptcy. While the operating margin is expanding, some concern remains regarding the company's gross margin, which has been in long-term decline.
Despite these challenges, Lightspeed has raised its guidance, forecasting a 20% revenue growth for the third quarter and full fiscal year 2025. Its adjusted EBITDA projection has also been increased to at least $50 million, up from the earlier minimum of $45 million. This optimistic outlook, coupled with continued product development, positions Lightspeed well for future growth and market performance.
