Technology stocks have come under pressure in recent days, weighed down by concerns about elevated valuations and growing economic uncertainty, especially as the Federal Reserve’s policy committee remains divided on the path of future monetary policy. Amid the recent pullback, let’s examine the performance, growth prospects, and valuation of Lightspeed Commerce (TSX: LSPD) and Docebo (TSX: DCBO) to determine which of these two technology stocks presents the more compelling buy at the moment.
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Lightspeed Commerce
Earlier this month, Lightspeed Commerce delivered an impressive second-quarter fiscal 2026 performance, driven by its AI (artificial intelligence)-powered innovation and disciplined execution, surpassing internal guidance. Revenue rose 15% year over year to $319 million, ahead of its projected range of $305–$310 million. This growth was fuelled by a 17% increase in transaction-based revenue and a 9% rise in subscription revenue. The company also continued to expand its customer base, with total customer locations reaching 146,000. In addition, average revenue per user climbed 15% to $685, driven by increased adoption of its payments offering, new software innovations, and recent price adjustments.
Moreover, gross profit increased by 18%, while gross margin expanded by 100 basis points to 42%, supported by adequate cost controls and targeted price adjustments. Although net losses widened, adjusted earnings per share (EPS) rose 23.1% year over year to $0.16. The company also reported adjusted EBITDA earnings before interest, taxes, depreciation, and amortization) of $21.3 million, a substantial 52.1% increase from the same quarter last year. In addition, Lightspeed generated $18 million in free cash flow, a significant improvement compared with $1.6 million in the prior-year quarter.
Further, the accelerating adoption of omnichannel solutions continues to create strong long-term growth opportunities for Lightspeed. In response to this rising demand, the company is intensifying its focus on developing innovative products that address its customers’ evolving needs. Reflecting this momentum, management has raised its fiscal 2026 outlook, projecting 12% revenue and 15% gross profit growth. Adjusted EBITDA could exceed $70 million, representing an increase of more than 30% from the prior year. Now, let’s look at Docebo’s performance and growth prospects.
Docebo
Docebo also delivered a strong third-quarter performance, surpassing its internal guidance. Revenue rose 11.2% year over year to $61.6 million, slightly above its projected range of $61–$61.2 million. While gross profit increased 10% to $49.5 million, gross margin contracted by 80 basis points to 80.3% due to higher cost of revenue. Supported by solid topline growth, lower sales and marketing expenses, and reduced depreciation and amortization costs, net income climbed 22% to $6.1 million. Excluding special items, adjusted net income reached $9.9 million, and adjusted EPS came in at $0.34, marking a 25.9% increase from the prior-year period.
The Learning Management System market is witnessing robust expansion, driven by the rising adoption of digital learning solutions across educational institutions and corporate environments, as well as by technological advancements that enable personalized, scalable, and cost-effective training platforms. To capitalize on rising demand, Docebo has embraced an AI-first platform strategy to deliver increasingly innovative and intelligent learning solutions. In addition, the company is forging strategic partnerships and expanding its footprint in the federal and SLED (state, local, and education government) markets, which could bolster its financial growth in the years ahead. Reflecting this positive outlook, Docebo has raised its fiscal 2025 guidance, projecting 11.4% revenue growth and an adjusted EBITDA margin of 18%.
Investors’ takeaway
Despite delivering strong quarterly results, both Lightspeed and Docebo have declined by 3.1% and 16%, respectively, since their earnings releases. On a year-to-date basis, Lightspeed has shed more than 27% of its value, while Docebo has fallen by more than 55%. Following these steep corrections, both stocks now trade at appealing valuations. Lightspeed currently trades at an NTM (next 12 months) price-to-sales multiple of 1.2, compared with Docebo’s 2.3.
While both companies offer attractive entry points at current levels, I am more optimistic about Lightspeed given its solid second-quarter performance, stronger growth outlook, and a more compelling valuation.
