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On Friday, Benchmark analysts maintained their Buy rating and $16.00 price target for Lightspeed POS (TSX:LSPD) Inc. (NYSE:LSPD) stock, representing significant upside from the current price of $10.53. According to InvestingPro data, analyst targets range from $9 to $15, with the stock currently trading below its Fair Value. The affirmation follows the company’s fourth-quarter earnings report for the period ending March 31, which was released earlier in the day.
Lightspeed Commerce, known for its point-of-sale (POS), e-commerce, and payments solutions, showcased its ongoing efforts to reposition itself for profitable growth. While not currently profitable, the company maintains a strong balance sheet with more cash than debt and a healthy current ratio of 5.36. The company’s latest financial disclosure highlighted its strategic shift and operational advancements, with revenue growing at 18.43% year-over-year.
In their commentary, Benchmark analysts focused on the company’s performance and future outlook. The fourth-quarter results were seen as a testament to Lightspeed’s successful reorientation of its business model. The analysts noted that the earnings report reflects the company’s transition from a phase of transformation to one of execution for the upcoming fiscal year.
The guidance provided by Lightspeed for the fiscal year 2026 was also acknowledged as being indicative of the expected outcomes from the company’s strategic pivot. The company’s forward-looking statements set the stage for its operational and financial trajectory in the new fiscal year.
Benchmark’s reiterated Buy rating and price target suggest a steady confidence in Lightspeed’s potential for growth and profitability. The price target of $16.00 remains unchanged, reinforcing the research firm’s positive outlook on the stock’s future performance.
In other recent news, Lightspeed POS Inc. reported its financial results for the fourth quarter of 2025, surpassing $1 billion in annual revenue for the first time. The company achieved a revenue of $253.4 million for the quarter, slightly exceeding the forecast of $252.37 million. However, the earnings per share (EPS) came in at $0.10, just below the expected $0.11. Despite the EPS miss, Lightspeed’s annual revenue grew by 18%, reaching $1.077 billion, and adjusted EBITDA increased significantly from $1.3 million to $53.7 million.
In terms of strategic moves, Lightspeed has focused on expanding its product offerings and enhancing its market position in North American retail and European hospitality sectors. The company also reported a 40% year-over-year increase in gross payments volume. Looking ahead, Lightspeed has set a fiscal 2026 revenue growth target of 10-12% and aims for gross profit growth of approximately 14%. Analyst firms like Jefferies and Bank of America have shown interest in Lightspeed’s strategy, particularly its focus on ramping sales capacity amid uncertain macroeconomic conditions.
Additionally, Lightspeed has been actively executing its share repurchase program, buying back approximately 18.7 million shares over the past year. The company ended the fiscal year with $558 million in cash, after repurchasing shares and funding merchant cash advances. These developments indicate Lightspeed’s strategic focus on long-term profitable growth while navigating macroeconomic uncertainties.
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