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Point-of-sale and payments-platform provider Lightspeed Commerce Inc. said Thursday it is exploring “strategic alternatives” in the wake of reports the company might put itself up for sale.
“While it is the long-standing policy of Lightspeed not to comment on market rumors, the company notes the recent media reports concerning a potential transaction involving the company,” Montreal-based Lightspeed said in a statement. “Lightspeed periodically undertakes, and is currently conducting, a strategic review of its business and operations with a view to realizing its full potential. In this context, the company has engaged, and may continue to engage, in discussions relating to a range of potential strategic alternatives.”
The statement came after Reuters, citing unnamed sources, reported Lightspeed was working with a financial advisor to consider options, including a sale. Lightspeed said its board of directors is “committed to acting in the best interests of the Company and its stakeholders,” and that it would not comment on the strategic review except under regulatory obligation.
Lightspeed is a big player in restaurant and retail payment services. Excluding customers using an e-commerce service, the company has signed about 165,000 locations. Lightspeed reported gross payment volume of $24.2 billion in fiscal 2024 ended March 31, up 65% year-over-year.
But despite considerable revenue growth, Lightspeed has struggled for years to make a profit. It reported a net loss of $164 billion in 2024, an improvement from fiscal 2023’s loss of $1.07 billion. More than $700,000 of 2023’s loss was from goodwill impairment, according to a Lightspeed financial report.
Lightspeed’s recent share price is off more than 85% from three years ago, according to Yahoo! Finance. In February, the company brought back founder Dax Dasilva and put him in the CEO role.
Payments consultant Cliff Gray, principal of Chicago-based Gray Consulting Ventures LLC, says he doesn’t have inside information about Lightspeed, but tells Digital Transactions News their thinking may be that “they’re still struggling, and with the stock falling let’s sell while they still can.”
Gray adds that Lightspeed is up against some significant competitors in the restaurant space, especially Shift4 Payments Inc. “They certainly play in a tough market,” he says.
