A Fresh Look at Lightspeed Commerce (TSX:LSPD) Valuation After Q2 Revenue Growth and Wider Losses

Lightspeed Commerce (TSX:LSPD) just released second quarter earnings, showing revenue growth to $319 million from last year, but also reporting a larger net loss. The combination of higher sales and wider losses will shape how investors react.

See our latest analysis for Lightspeed Commerce.

Lightspeed shares have had a turbulent year, with the latest 1-day share price gain of 2.83% offering only a brief respite from a longer losing streak. The year-to-date share price return sits at -27.73%, and the 1-year total shareholder return is down 25.46%. Recent financial results and a wave of product launches, including new AI-powered tools and hospitality features, have added fresh narrative to the stock but have not yet reversed its downward momentum. This has kept many investors on the sidelines as they watch for signs of a sustainable turnaround.

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With analysts modeling upside and recent results painting a mixed picture, the real question is whether Lightspeed shares offer hidden value at current prices or if the market has already factored in any future rebound.

Most Popular Narrative: 23.1% Undervalued

With Lightspeed's fair value from the most-followed narrative sitting notably higher than the last close of CA$16.37, attention is quickly turning to what is powering this valuation gap. The focus is on digital platform expansion, new product launches, and what sustained revenue improvements could mean for future profits.

Accelerating adoption of digital payments and cloud-based platforms in retail and hospitality, core to Lightspeed's growth strategy, continues to boost subscription and transaction-based revenue. This supports an expanding total addressable market and steady revenue growth.

Read the complete narrative.

Want to know how bold earnings forecasts and betting big on technology innovation are driving this valuation? There is a surprising set of growth assumptions and a sizeable profit turnaround underpinning this fair value. The narrative lifts the lid on the forecasts behind today’s hot price target. Curious what is fueling the jump?

Result: Fair Value of $21.28 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistently negative free cash flow and mounting competition from industry peers could quickly change investor sentiment and challenge Lightspeed’s growth assumptions.

Find out about the key risks to this Lightspeed Commerce narrative.

Build Your Own Lightspeed Commerce Narrative

If you see things differently or want to dig into the numbers yourself, you can put together your own perspective on Lightspeed in just a few minutes. Do it your way

A great starting point for your Lightspeed Commerce research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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