More than US$22.9 billion moved through one Canadian company’s platform in a single quarter, yet its shares remain roughly 28% below a 52-week high. That disconnect gives patient investors a chance to study a growing digital-commerce business while much of the market still remembers its messier years.
A falling technology stock isn’t automatically a bargain, of course. The strongest long-term opportunities appear when the price weakens while customer activity, recurring revenue, and cash generation keep moving in the opposite direction. So, what tech stock shows just that?
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What can compound for decades?
Retailers and restaurants increasingly need one system to manage sales, inventory, payments, customer data, and online orders. Once a business builds those daily operations around a platform, switching becomes expensive, disruptive, and about as appealing as replacing the cash registers during the Saturday rush.
That creates recurring software revenue, while integrated payments allow the provider to earn more as each customer grows. Investors searching among Canadian growth stocks should therefore watch customer activity and payment adoption rather than focusing only on headline revenue.
Those trends point toward Lightspeed Commerce (TSX: LSPD), a Montreal-based company serving retailers, restaurants, golf operators, and hospitality businesses in more than 100 countries.
A business finally finding focus
Lightspeed stock spent years acquiring companies and expanding rapidly, leaving investors with a complicated collection of products and repeated losses. Founder Dax Dasilva returned as chief executive officer in 2024 and began narrowing the company around its strongest markets.
That transformation now centres on North American retail and European hospitality. Revenue from those growth engines climbed 24% year over year during the fiscal fourth quarter, while gross transaction value rose 19% and customer locations increased by roughly 3,200 from the previous quarter.
Those customers also adopted more Lightspeed stock services. Gross payment volume reached US$9.6 billion, up 22%, as the company processed a larger share of merchant sales through its own payment network. It’s no wonder then that shares have jumped 33% since earnings in May at writing.
The next phase
Lightspeed stock sold its non-core Upserve product line for cash consideration of up to US$81 million, allowing management to direct more attention toward its flagship platforms. The company also introduced artificial intelligence (AI) tools that automate inventory entry, import restaurant menus, and recommend products to retailers.
Those improvements should support stronger margins as revenue grows. Lightspeed stock expects organic revenue growth of 12% to 15% in fiscal 2027, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) could reach as much as US$95 million.
The company finished fiscal 2026 with US$453.9 million in cash and authorized the repurchase of roughly 10% of its public float. Buying back shares during a weak period could increase each remaining investor’s ownership if the turnaround continues.
Considerations
Lightspeed stock recently traded near $14.50, compared with a 52-week high of $19.89. That 28% decline gives investors a lower entry point even as the company’s core operations produce double-digit growth and positive adjusted free cash flow. The stock could remain volatile during another market correction, so gradual buying makes more sense than trying to identify the exact bottom.
Lightspeed stock still reported an annual net loss, while intense competition could pressure pricing and customer retention. Management must also prove that streamlining the business can produce durable profits rather than another temporary improvement.
Bottom line
Lightspeed stock now looks more focused, better funded, and increasingly tied to the payments flowing through its customers. Investors who accept the execution risk could use today’s 28% pullback to begin a position, then give this Canadian commerce platform decades to prove how large it can become.
