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Mar 31

Lightspeed Q4 2025 Earnings Report

Lightspeed reported Q4 2025 results with moderate revenue growth, an improved adjusted EBITDA, and a major net loss driven by a large goodwill impairment.

Key Takeaways

Q4 revenue grew to $253.4M, while a $556.4M goodwill impairment led to a steep net loss. Despite this, adjusted EPS and EBITDA improved YoY, and ARPU increased driven by unified POS and payments adoption.

Reported revenue reached $253.4M, up 10% YoY.

Net loss widened to $575.9M due to a $556.4M non-cash goodwill impairment.

Adjusted EPS rose to $0.10 from $0.06 in the prior year.

ARPU climbed 13% to ~$489, driven by unified POS and payments platform.

Total Revenue
$253M
Previous year: $230M
+10.1%
EPS
$0.1
Previous year: $0.06
+66.7%
Adjusted EBITDA
$12.9M
Previous year: $4.39M
+194.6%
ARPU
$489
Previous year: $431
+13.5%
Subscription ARPU
$489
Previous year: $441
+10.9%
Gross Profit
$112M
Cash and Equivalents
$558M
Free Cash Flow
-$9.3M
Total Assets
$1.83B

Lightspeed

Lightspeed

Lightspeed Revenue by Segment

Forward Guidance

Lightspeed expects Q1 2026 revenue between $285M–$290M, with continued improvement in gross profit and adjusted EBITDA margins. FY26 is guided for 10–12% revenue growth.

Positive Outlook

  • Q1 2026 revenue expected to reach up to $290M
  • Adjusted EBITDA guided between $14M and $16M for Q1
  • FY26 revenue growth forecasted at 10–12%
  • Increased investment in product and tech by 35%
  • Planned growth of outbound sales team to over 150 reps

Challenges Ahead

  • Goodwill impairment reflects broader tech valuation volatility
  • Customer Location count flat to slightly down YoY under new definition
  • Adjusted Free Cash Flow remained negative at -$9.3M
  • Ongoing macroeconomic uncertainty may impact outlook
  • Dependency on success in North America and Europe verticals

Revenue & Expenses

Visualization of income flow from segment revenue to net income