LSPDNEUTRAL

Gross Margin

44.4%

Higher than 18% of Technology sector peers

Updated 67h ago

Sector Performance

18th percentile

LSPD

44.4%

Sector Median

65.2%

Sector Avg

60.6%

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Deep Analysis

Lightspeed’s gross margin of 44.4% means that for every dollar of revenue, the company keeps $0.444 after deducting the direct costs of providing its software and services.

That figure sits well below the technology sector median of 65.2%, placing the company at the 18th percentile among its peers. Over the last eight quarters the trend has been increasing; quarter-over-quarter gross margin rose 41.4% from 31.4% to 44.4%, while year-over-year change is not available due to data limitations. The combination of a low absolute level with a sharply rising trend suggests that the current margin remains a risk factor, but the improvement may signal narrowing competitive pressure or better cost management. The overall NEUTRAL verdict is directly supported: the low percentile rank reinforces caution, while the upward trajectory provides a counterbalancing signal of potential turnaround.

Frequently Asked Questions

What does the Gross Margin tell investors about LSPD?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does LSPD's Gross Margin compare to its sector?

LSPD's Gross Margin of 44.4% compares to a Technology sector median of 65.2%, placing it in the 18th percentile.

Who are LSPD's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: FORM (47.9%), LYFT (47.6%), COHU (46.3%), UBER (45.0%), GRAB (43.4%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.