Lightspeed replaced its founder after a short-seller crash, then undid it 26 months later

Lightspeed Commerce, a Montreal-based point-of-sale and payments software company, was founded by Dax Dasilva in 2005. By late 2021 it was one of Canada's most prominent tech listings, having grown through acquisitions across retail and hospitality. In September 2021, short-seller Spruce Point Capital accused the company of inflating key metrics; the shares, already under pressure, lost more than 75% of their value over the following months.

On 2 February 2022, alongside third-quarter results, the board announced that Dasilva was stepping down as CEO to become executive chair, and that president JP Chauvet would take over immediately. The move was described as part of a long-running succession plan. But the timing — weeks of short-seller pressure and a steep share-price decline — meant many read it as a reaction to the crisis rather than a calm handover.

Over the next two years Chauvet overhauled the executive team, shed about 10% of staff and reached positive adjusted EBITDA. The share price kept falling, ending more than 85% below its 2021 peak. On 15 February 2024, after a negative reaction to earnings, the board reversed course: Chauvet stepped down and Dasilva returned — as interim CEO.

Dasilva's first moves were to cut another 10% of the workforce, start a share buyback and launch a strategic review. The review, which weighed a sale of the company, concluded with Lightspeed remaining public. A founder-CEO removal reversed inside twenty-six months is, by definition, a transition that did not land.