Lightspeed Commerce Authorizes $300 Million Stock Buyback Amid Market Volatility
Montreal, Wednesday, 26 March 2025.
Lightspeed Commerce Inc. approved a $300 million share repurchase plan, reflecting confidence in its growth prospects despite economic challenges, aiming to enhance shareholder value and boost market position.
Strategic Expansion of Share Repurchase Program
Lightspeed Commerce Inc. (NYSE: LSPD, TSX: LSPD) has significantly expanded its share repurchase initiatives, with the board authorizing an additional $300 million buyback plan on March 26, 2025 [1]. This latest authorization builds upon the company’s existing buyback activities, bringing the total repurchase commitment to approximately $430 million when combined with the over $130 million already repurchased during fiscal 2025 [2].
Financial Outlook and Market Position
The buyback announcement comes amid a revised financial outlook, with Lightspeed adjusting its fiscal 2025 revenue growth projection to 18%, down from the previously anticipated 20% [3]. Despite these adjustments, the company maintains its forecast of achieving over $53 million in adjusted EBITDA for fiscal 2025 [4]. Looking further ahead, Lightspeed projects a consolidated gross profit CAGR of 15-18% through fiscal 2028, with gross profits expected to reach approximately $700 million by that time [5].
Implementation and Market Impact
The new Normal Course Issuer Bid (NCIB) will enable the purchase of up to 9,013,953 subordinate voting shares, with daily purchases capped at 153,504 shares [2]. This represents 25% of the average daily trading volume for the six-month period ending February 28, 2025 [2]. As of March 25, 2025, the company has already demonstrated its commitment to the program by repurchasing 9,722,677 subordinate voting shares at an average price of CAD$19.20 [4].