Lightspeed Commerce (LSPD) | News Based Sentiment Analysis

• On September 3, 2025, Lightspeed Commerce agreed to an $11 million settlement in a Quebec class-action lawsuit alleging misrepresentation of financial performance, stemming from a 2021 short seller report. While Lightspeed denies the allegations and didn't admit liability, this settlement resolves a significant legal challenge in Canada. This is important because it removes a potential financial and reputational risk for the company.
• The consensus Earnings Per Share (EPS) forecast for Lightspeed Commerce for the fiscal quarter ending September 2025 was lowered to -0.01 on September 1, 2025, a substantial 150.00% decrease from the previous month’s forecast of 0.02. This downward revision, driven by one analyst’s lowered forecast for the fiscal year ending March 2026, signals growing concerns about near-term profitability.
• As of September 2, 2025, 13 analysts maintain a "Buy" rating for Lightspeed Commerce, with an average price target of $14.19, indicating a potential 18.15% upside. Josh Baer (Morgan Stanley) increased his price target from $12 to $14 (16.57% increase) while maintaining a "Hold" rating.
• Mark Palmer (Benchmark) remains bullish, maintaining a "Strong Buy" rating and raising the price target from $16 to $18 (49.88% increase), suggesting strong conviction in the company’s long-term prospects. This positive outlook contrasts with the recent EPS forecast reduction.
• Raimo Lenschow (Barclays) also revised his price target upwards, from $12 to $15 (24.90% increase), while keeping a "Hold" rating. The varied analyst reactions highlight differing perspectives on Lightspeed’s near-term challenges and long-term potential.

The Investment Story: September 2025 presented a mixed bag for Lightspeed Commerce, with a significant legal settlement alongside lowered earnings expectations, but tempered by continued positive sentiment from a majority of analysts who see substantial upside. The month underscored the company's ongoing navigation of profitability challenges while maintaining a positive long-term outlook.

What It Means for Investors: The $11 million settlement, while a cost, removes a legal overhang. However, the sharply lower EPS forecast is a red flag, suggesting near-term performance may disappoint. The analyst community remains largely optimistic, but investors should carefully weigh the conflicting signals and monitor the company’s progress towards profitability.

Looking Ahead: Investors should closely watch for the outcome of the Quebec Superior Court hearing on November 21, 2025, regarding settlement approval. Furthermore, monitoring the company’s performance in the fiscal quarter ending September 2025 will be crucial to assess the validity of the lowered EPS forecast.

The Bottom Line: Lightspeed Commerce faces a period of uncertainty as it works to improve profitability. While the legal situation appears to be resolving, the lowered earnings forecast demands caution. Investors should monitor upcoming results and the settlement approval process to determine if the company can deliver on its long-term potential.