Abstract
Lightspeed POS Inc will report results on February 05, 2026 Pre-Market; this preview compiles last quarter performance, this quarter’s forecasts, and majority analyst opinions to frame revenue, profitability, and adjusted EPS trajectories.
Market Forecast
For the quarter to be reported, market forecasts point to total revenue of $310.80 million, up 8.52% year over year, an estimated adjusted EPS of $0.14, and estimated EBIT of -$33.04 million; year-over-year EBIT is forecast to improve modestly while adjusted EPS rises 41.99%. The company’s prior commentary implies continued traction in Software and Payments, with emphasis on monetization and operating discipline. Software and Payments remains the most promising segment with estimated revenue of $309.31 million last quarter and a double-digit year-over-year pace implied by this quarter’s revenue growth.
Last Quarter Review
Lightspeed POS Inc posted revenue of $318.96 million, a gross profit margin of 42.38%, a GAAP net loss attributable to the parent company of $32.70 million, a net profit margin of -10.25%, and adjusted EPS of $0.16, with revenue advancing 15.07% year over year and adjusted EPS rising 23.08% year over year. The quarter featured outperformance versus revenue and adjusted EPS expectations alongside improving sequential net profitability, with the net loss narrowing quarter on quarter by 34.03%. Main business highlights: Software and Payments delivered $309.31 million, while Hardware and Other contributed $9.65 million; momentum was concentrated in the Software and Payments engine.
Current Quarter Outlook
Core Commerce Platform and Payments
The core engine of Lightspeed POS Inc remains its unified software platform paired with integrated payments. This pairing drives higher average revenue per user and lowers churn as merchants adopt more modules and route payment volume through the company’s stack. With last quarter’s Software and Payments revenue at $309.31 million and this quarter’s total company revenue forecast at $310.80 million, the mix remains heavily skewed toward recurring software and payment monetization. The forecasted adjusted EPS of $0.14, up 41.99% year over year, suggests operating leverage from scale and disciplined expense management even as EBIT remains negative. Execution focus this quarter revolves around gross margin stewardship within payments take rates and software module utilization, which together anchor the path toward breakeven EBIT.
Most Promising Growth Vector: Software and Payments Expansion
Software and Payments is positioned as the key growth lever, supported by stable adoption trends and expansion within existing merchants. The segment’s $309.31 million in revenue last quarter underscores its scale and its role in sustaining double-digit consolidated growth this quarter. The implicit year-over-year increase embedded in the $310.80 million revenue forecast points to resilient merchant demand and the durability of integrated payments as a monetization channel. Near-term upside centers on increased card-present volume, improved attach rates for payments on newly onboarded locations, and expansion of higher-value software bundles that can lift gross margin while supporting adjusted EPS performance.
Stock Price Drivers: Profitability Trajectory, Gross Margin Mix, and Guidance
Three interlocking factors are poised to influence the shares this quarter. The first is the cadence of profitability improvement: while EBIT is forecast at -$33.04 million, investors will scrutinize whether operating loss narrows sequentially and how adjusted EPS tracks versus the $0.14 estimate. The second is gross margin mix, especially the balance between higher-margin software revenue and lower-margin payment processing; sustaining the 42.38% gross margin baseline or improving upon it would validate mix management and price discipline. The third is the company’s guidance and commentary around revenue growth durability into the next quarter, particularly signals on merchant additions, payment penetration, and any macro-related variability in retail and hospitality spending. Clear indications of steady growth with measured expense control would likely support sentiment.
Analyst Opinions
Across institutional commentary in the past six months, the majority view is bullish. Recent notes include Buy reiterations from BTIG with a $16.00 price target, BMO Capital with a $16.00 target, CIBC with a C$30.00 target, Benchmark with an $18.00 target, and RBC Capital with a $15.00 target, versus Hold calls from Truist with a $13.00 target; the ratio of bullish to neutral/hold skews toward bulls. The bullish camp points to the revenue mix pivot to Software and Payments, improving adjusted EPS trends, and potential for operating leverage as volumes scale, arguing that execution against payments attach and software monetization can compress losses and move EBIT toward breakeven. This lens frames expectations for February 05, 2026: investors are likely to prioritize confirmation of revenue near $310.80 million, adjusted EPS around $0.14, and qualitative guidance supporting continued efficiency gains in the core platform and payments businesses.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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