Shares of Lightspeed POS Inc (LSPD) plummeted 5.06% in intraday trading, despite the company reporting better-than-expected revenue for its fiscal first quarter. The significant drop in stock price appears to be driven by a notable earnings miss, raising concerns about the company's profitability.

Lightspeed Commerce, a provider of point-of-sale and e-commerce software, reported fiscal Q1 revenue of $304.9 million, surpassing analysts' expectations of $287.3 million. This represents a 14.60% increase from the $266.1 million reported in the same period last year. However, the company's adjusted earnings per share (EPS) came in at $0.06, falling well short of the $0.13 consensus estimate and marking a 40% decrease from the $0.10 per share earned in the previous year's quarter.

While Lightspeed maintained its fiscal 2026 revenue growth outlook at 10% to 12%, the substantial earnings miss seems to have overshadowed the revenue beat. Investors appear to be focusing on the company's ability to translate top-line growth into profitability, leading to the sharp decline in stock price. As the market digests this mixed earnings report, it remains to be seen how Lightspeed will address these profitability concerns in the coming quarters.