Toast (NYSE:TOST) and Lightspeed (TSX:LSPD) are two fintech stocks that have gone public in the past decade. Valued at a market capitalization of $2.26 billion, Lightspeed has grossly underperformed the broader market, trading almost 90% below its all-time highs.
Comparatively, valued at almost $24 billion by market cap, Toast stock is “just” 38% below record levels.
So, let’s see which beaten-down fintech stocks you should own right now,
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Is this TSX stock a good buy right now?
In the fiscal first quarter (Q1) of 2026 (ended in June), Lightspeed reported revenue of US$305 million, an increase of 15% year over year, while adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) jumped 55% to US$16 million.
Location growth in core markets accelerated to 5% year over year from 3% in the previous quarter, with approximately 1,700 net new customer locations added. Payment penetration reached 41%, driving transaction-based revenue up 18%.
Management’s disciplined approach to sales force expansion appears well-executed. The company has 130 of its planned 150 outbound sales representatives in place, with most still ramping toward full productivity. Outbound-driven bookings more than doubled year over year, creating a halo effect that lifted inbound bookings by 15%.
Software revenue growth of 9% year over year, improved from 7% last fiscal year, but reflects the company’s struggle to accelerate its subscription business. The aggressive share-repurchase program, $85 million in Q1, also raises questions about optimal capital allocation when the business requires substantial sales and product investments.
Analysts tracking LSPD stock forecast revenue to increase from US$1.08 billion in fiscal 2025 (ended in March) to US$1.60 billion in fiscal 2029. Lightspeed stock is also expected to expand adjusted earnings per share from US$0.45 to US$1.14 in this period.
Today, the TSX stock is priced at 23.2 times forward earnings. If it continues to trade at a similar multiple, LSPD stock should more than double over the next three years.
Should you buy, sell, or hold Toast stock?
Toast reported better-than-expected second-quarter results, adding a record 8,500 net new locations and delivering $161 million in adjusted EBITDA with margins expanding eight percentage points year over year to 35%. The restaurant technology platform now serves approximately 148,000 locations across its customer segments.
Toast’s expansion beyond its core U.S. restaurant business enabled it to reach 10,000 live locations across various segments, including enterprise, international, and food and beverage retail. These new customer segments are on track to surpass US$100 million in annual recurring revenue collectively by year-end, a milestone that took six years to achieve in Toast’s core business.
Notable enterprise wins included Firehouse Subs, a 1,300-location quick-service restaurant brand, and Zabar’s, the iconic New York grocer. Food and beverage retail customers are already generating an average revenue per user of over US$10,000, signalling strong adoption of the value proposition. Internationally, Toast launched in Australia, its fourth market after the U.K., Ireland, and Canada.
Toast also announced an exciting partnership with American Express to integrate reservation listings from Resy, Tock, and Toast Tables into its Local app, creating personalized dining experiences for guests, including Amex card members. The company unveiled Toast Go 3, a new handheld device featuring built-in cellular connectivity and the ToastIQ intelligence engine.
For the third quarter, Toast expects subscription and fintech gross profit growth of 23% to 26% year over year. The company has raised its full-year outlook, now expecting 29% growth in fintech and subscription gross profit, as well as US$575 million in adjusted EBITDA, indicating a 32% margin.
Analysts tracking TOST stock forecast revenue to increase from US$4.96 billion in 2024 to US$11.13 billion in 2029. Toast stock is expected to expand adjusted earnings per share from US$0.54 to US$1.51 in this period.
Today, the fintech stock is priced at 39 times forward earnings. If it continues to trade at a similar multiple, Toast stock is expected to gain 50% within the next four years. We can see that Lightspeed trades at a lower multiple and offers significant upside potential compared to Toast in September 2025.
