Lightspeed Commerce (LSPD, Financial) just posted a headline-grabbing $556 million goodwill impairment—and investors didn't take it lightly. Shares dropped as much as 9.7% on Thursday, making it the worst performer on the S&P/TSX Composite Index. The write-down comes as Lightspeed's market cap fell below its net assets, raising red flags across the board. Still, revenue for fiscal 2025 came in at $1.1 billion, up 18% year-over-year—a notable milestone in an otherwise bruising stretch.
CEO Dax Dasilva framed the quarter as a pivot point, pointing to ongoing restructuring and headwinds for small retailers. “There's a lot of macro pressure,” he said, referencing weak performance in February and March. Despite that, Lightspeed stuck to its long-term forecast: gross profit growth of 15% to 18% annually over the next three years, a target first laid out on March 26. The company is now banking on a new outbound sales play—150 reps focused on retail and hospitality—with half already in place. But it's early days. “We've got to deliver over the next four quarters,” Dasilva admitted.
Bank of Montreal analyst Thanos Moschopoulos isn't giving up on the stock just yet. He called the current valuation “inexpensive” and acknowledged that the outbound strategy could take time to show results. Lightspeed's share price was down 35% year-to-date. The company peaked at a C$22.7 billion valuation in 2021. The gap between that high and today's numbers? It's not just capital—it's confidence. And right now, Lightspeed needs to earn that back, one quarter at a time.
