Lightspeed POS Inc (LSPD) shares plummeted 5.06% in Thursday's trading session, reversing earlier gains as investors reassessed the company's fiscal Q1 2026 earnings report. The stock's decline came despite the company reporting better-than-expected revenue figures, suggesting that concerns over profitability outweighed top-line growth.

The commerce-enabling software provider reported fiscal Q1 adjusted earnings of $0.06 per diluted share, significantly missing analysts' expectations of $0.13 per share and declining from $0.10 in the same period last year. This substantial earnings miss likely spooked investors, overshadowing the company's strong revenue performance. Lightspeed posted quarterly revenue of $304.9 million, surpassing analyst forecasts of $287.3 million and representing a 14.60% increase year-over-year.

While Lightspeed maintained its fiscal 2026 revenue growth outlook at 10% to 12%, the sharp decline in earnings per share raised questions about the company's profitability and cost management. The market's negative reaction suggests that investors are prioritizing bottom-line performance over top-line growth in the current economic environment. As trading progressed, the initial optimism surrounding the revenue beat gave way to concerns about the company's ability to translate sales growth into improved profitability, ultimately leading to the significant stock price decline.