Not every stock that’s down is out. Sometimes, a beaten-up share price hides a business that’s building something big. That’s the story with Lightspeed Commerce (TSX:LSPD). It’s a company that’s been hammered over the last couple of years, with shares down about 32% this year alone as of writing. But under the surface, Lightspeed is showing signs of major progress. For investors who can look past the noise, this might be one magnificent TSX stock to buy and hold while the rest of the market catches up.
About Lightspeed
Let’s start with the basics. Lightspeed is a Montreal-based company that provides cloud-based point-of-sale and e-commerce software for small- and medium-sized businesses. Think retail shops, restaurants, hotels, anywhere someone wants to manage inventory, take payments, book customers, and run their business in one place. Lightspeed’s platform makes that all possible. It’s especially popular in hospitality and retail, and it has grown through a mix of internal development and smart acquisitions across North America and Europe.
Now, why is the stock down? The biggest reason is that investors have become wary of tech stocks that aren’t turning out consistent profits. Lightspeed has also faced some integration challenges as it absorbed various companies it acquired during its growth spurt. But here’s what’s changed: the tech stock is now shifting toward profitable growth. And the numbers are starting to reflect that shift.
Into earnings
In May 2025, Lightspeed reported its results for the fiscal year ending March 31, 2025, and they were stronger than many expected. Annual revenue came in at US$1.1 billion, up 18% year-over-year. For the fourth quarter alone, revenue was US$253.4 million, representing a 10% increase. It’s growing faster than most Canadian tech stocks of its size and proving it still has runway. Gross margins rose to 44%, showing that its new pricing structure and product mix are starting to pay off.
The headline number that spooked some investors was the net loss of US$667.2 million for the year. But when you dig deeper, you see that most of this, about US$556.4 million, was a one-time non-cash goodwill impairment. Strip that out, and you get a much clearer picture. On an adjusted basis, Lightspeed posted a profit of US$69.5 million, or US$0.45 per share. That’s up significantly from the prior year’s adjusted income of US$24.5 million.
The company ended the year with US$558.5 million in cash and cash equivalents. That’s a strong cash position for a business of this size, giving it the flexibility to invest in its platform, attract new clients, and weather short-term turbulence. It also means Lightspeed doesn’t need to dilute shareholders or rely on debt in the near term to grow.
Value in growth
Lightspeed operates in a sector that still has lots of room for growth. While some businesses moved online during the pandemic, many are now looking for integrated tools that combine in-person and online sales. Lightspeed’s omni-channel model fits perfectly with that shift. It helps businesses take payments online, manage in-store inventory, offer curbside pickup, and handle appointments, all from one dashboard.
The market hasn’t fully appreciated Lightspeed’s pivot to profitable growth yet. There’s still some baggage from its earlier days when it was viewed as a high-growth, no-earnings story. But the new Lightspeed is leaner, more focused, and financially stronger. It’s still early, but the foundation is being rebuilt.
For patient investors, this is a chance to get in before the rest of the market catches on. With solid revenue growth, improving margins, increasing profitability, and a big cash cushion, Lightspeed looks like a tech stock that’s been unfairly punished. Sometimes the best opportunities come when everyone else is looking the other way.
Bottom line
In a market filled with dividend giants and cyclical plays, Lightspeed offers something different: tech-powered growth at a discount. It’s not risk-free, but few stocks with this much upside ever are. Down 32% but turning a corner, Lightspeed may just be that one magnificent tech stock you’ll wish you bought at the bottom.
