Investment Research report

Lightspeed Commerce, Inc.

Previous Item
All Reports
Lightspeed Commerce, Inc.
Putting the Brakes on Lightspeed
Download Report
Lightspeed Commerce, Inc.
Download Report 2
Lightspeed Commerce, Inc.
Download Report 3
Lightspeed Commerce, Inc.
Download Report 4
Lightspeed Commerce, Inc.
Download Report 5
Lightspeed Commerce, Inc.
Download Report 6
Lightspeed Commerce, Inc.
Download Report 7

Research Overview

INDEX:
S&P 500
Sector:
Technology
Position:
Short
Date:
Sep 29, 2021

After conducting a forensic financial and accounting review, Spruce Point believes Lightspeed Commerce Inc. (TSX/NYSE: LSPD), a cash degenerative North American roll-up of point-of-sale commerce solutions, has covered up massive inflation of its Total Addressable Market (TAM), customer counts, and Gross Transaction Volume (GTV). Based on our investigation, we estimate 60% to 80% downside risk, or $22.50 — $45.00 per share.

The report highlights several key concerns with the company, including:

  • We have found evidence that Lightspeed massively inflated its business pre-IPO, overstating its customer count by 85% and GTV by 10% 
  • Evidence of declining organic growth and business deterioration through Lightspeed’s IPO, despite management’s claims that average revenue per user is increasing
  • We believe that Lightspeed’s recent acquisition spree has come at escalating costs with no clear path to profitability, while management pursues aggressive revenue reporting practices
Downloads & More

Research Assets & Releases

Join The Mailing List

Spruce Point Alerts & Updates

See the other side of the Wall Street hype machine.