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Jun 30
Lightspeed Q1 2026 Earnings Report
Lightspeed reported strong financial results for the first quarter of fiscal year 2026, exceeding revenue and gross profit outlooks, driven by increased customer locations, higher ARPU, and improved operating efficiency.
Key Takeaways
Lightspeed Commerce Inc. announced robust financial results for the three months ended June 30, 2025, with total revenue reaching $304.9 million, a 15% year-over-year increase. The company also saw a significant improvement in gross margin to 42% and achieved positive Adjusted EBITDA, demonstrating strong operational leverage and profitable growth.
Total revenue for the quarter was $304.9 million, representing a 15% year-over-year growth and surpassing the company's outlook.
Gross margin improved to 42%, with gross profit increasing by 19% year-over-year, exceeding expectations.
Lightspeed added approximately 1,700 net Customer Locations, primarily in retail in North America and hospitality in Europe, contributing to overall customer location growth.
Gross Payment Volume (GPV) increased by 21% year-over-year, with GPV as a percentage of GTV reaching 41%.
Lightspeed
Lightspeed
Lightspeed Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comTransaction-based Revenue
CapyFin.comHardware and Other Revenue
CapyFin.com Forward Guidance
Lightspeed remains confident in its strategy focusing on retail customers in North America and hospitality customers in Europe, expecting to increase Customer Locations within these growth engines while retaining revenue in other markets. The financial outlook is consistent with long-term targets for gross profit CAGR of approximately 15-18% and Adjusted EBITDA CAGR of approximately 35%.
Positive Outlook
- Continued focus on increasing Customer Locations in key growth engines (retail in North America, hospitality in Europe).
- Expectation to retain revenue in other markets.
- Consistent with three-year target gross profit CAGR of approximately 15-18%.
- Consistent with three-year target Adjusted EBITDA CAGR of approximately 35%.
- Confidence in executing strategy and managing macroeconomic environment.
Challenges Ahead
- Assumptions related to inflation, tariffs, changes in interest rates, consumer spending, and foreign exchange rates could impact results.
- Risk of jurisdictions imposing strict measures similar to past pandemics or health crises.
- Potential for subscription pauses and churn rates to deviate from planned levels due to business failures.
- Uncertainty regarding revenue streams from certain partner referrals, especially with unified POS and payments solutions.
- Risks related to the ability to manage default risks of merchant cash advances.
Revenue & Expenses
Visualization of income flow from segment revenue to net income