MONTREAL — In a significant move, Lightspeed Commerce Inc., a leading payments technology firm based in Montreal, has announced it is conducting a comprehensive review of its business operations.

This strategy aims to explore a range of potential alternatives that could reshape its future.

The announcement was made late Wednesday, coinciding with rising speculation about a possible transaction involving the company.

Following the news, Lightspeed's shares experienced a notable uptick on the Toronto Stock Exchange, climbing approximately 12% in midday trading on Wednesday, before settling at more modest gains on Thursday.

Lightspeed, which regularly evaluates its operational strategies to maximize its potential, indicated that this strategic review may signal significant developments—often considered a precursor to a sale by companies in similar situations.

The company emphasized that its board of directors remains dedicated to acting in the best interests of its stakeholders, although it has no immediate plans to disclose specific outcomes from the ongoing review.

After a leadership change last year, Dax Dasilva has returned to the role of chief executive officer.

He is actively implementing measures to restore the company's profitability, a goal that is increasingly urgent in a competitive market.

Dasilva previously handed over the CEO role to JP Chauvet in February 2022 but was reinstated permanently in May of this year.

Under Dasilva's leadership, Lightspeed is focusing on improving its financial performance through strategic cost-cutting measures.

Earlier this year, the company streamlined its workforce by letting approximately 280 staff members go and adapted its corporate events to a virtual format to cut expenses.

Additionally, the company has adopted flexible office work policies to minimize costs associated with operational overheads, such as employee meal provisions.

In March, Dasilva also hinted at the potential for taking Lightspeed private, an option that may appeal to investors seeking stability and focused growth strategies amidst market volatility.

Furthermore, the company has made significant strides in enhancing its service offerings.

It brokered a partnership with Uber, integrating services like Uber Direct and the Uber Eats marketplace into its platform—a move aimed at expanding its reach and revenue channels.

Last year, in an effort to drive sales, Lightspeed pivoted its strategy to target larger, premium clients, positioning itself as a go-to solution for high-end businesses looking for robust payment technology.

With these ongoing changes, the business world is keenly watching to see how Lightspeed Commerce navigates its strategic review and whether it will lead to a major transformation in the company's structure and operational focus.

Stay tuned for updates as Lightspeed continues its journey toward enhanced profitability and market competitiveness!