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Sep 30, 2025
Lightspeed Q2 2026 Earnings Report
Lightspeed Commerce Inc. announced financial results for the second quarter of fiscal year 2026, reporting strong revenue growth and improved gross profit margins, exceeding its own outlook.
Key Takeaways
Lightspeed delivered a strong second quarter for fiscal year 2026, with revenue reaching $319.0 million, a 15% year-over-year increase, and gross profit margins improving to 42%. The company also achieved positive cash flow from operating activities of $25.5 million and significantly increased Adjusted Free Cash Flow to $18.0 million, demonstrating successful execution of its transformation strategy and disciplined financial management.
Revenue for the quarter was $318,963,000, marking a 15% increase year-over-year and surpassing the company's outlook.
Gross profit improved to $135,163,000, with gross profit margins reaching 42.4%, an 18% increase year-over-year.
The company generated $25,541,000 in cash flow from operating activities and $18,020,000 in Adjusted Free Cash Flow, a substantial increase from $1,613,000 in the prior year.
Lightspeed added approximately 2,000 net Customer Locations across retail in North America and hospitality in Europe, and Gross Transaction Volume (GTV) grew 15% year-over-year.
Revenue by Segment
Forward Guidance
Lightspeed is raising its full-year revenue, gross profit, and Adjusted EBITDA outlook for Fiscal 2026 due to strong performance in the first half. The company expects to generate break-even or better Adjusted Free Cash Flow for Fiscal 2026, aligning with its long-term targets.
Positive Outlook
- Raised full-year revenue outlook for Fiscal 2026.
- Raised full-year gross profit outlook for Fiscal 2026.
- Raised full-year Adjusted EBITDA outlook for Fiscal 2026.
- Expects to generate break-even or better Adjusted Free Cash Flow in Fiscal 2026.
- Financial outlook remains consistent with three-year target gross profit CAGR of approximately 15-18% and Adjusted EBITDA CAGR of approximately 35%.
Challenges Ahead
- Outlook is subject to macroeconomic factors like inflation, interest rates, and consumer spending trends.
- Potential for instability in the banking sector and exchange rate fluctuations.
- Risks related to geopolitical events such as military conflicts and foreign policy shifts.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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