Lightspeed Announces Fourth Quarter and Full Year 2025 Financial Results and Provides Outlook for Fiscal 2026

Total revenue in the year of $1,076.8 million, an increase of 18% year-over-year

Total revenue in the quarter of $253.4 million, grew 10% year-over-year

Gross margin improved to 44%, with gross profit increasing 12% year-over-year

Monthly ARPU¹ grew 13% year-over-year to ~$489 while subscription ARPU¹ grew 11%

Repurchased ~18.7 million shares, or ~12% of total shares outstanding, for proceeds of ~$219 million in last 12 months²

Lightspeed reports in US dollars and in accordance with IFRS Accounting Standards.

MONTREAL, May 22, 2025 – Lightspeed Commerce Inc., the one-stop commerce platform empowering merchants to provide the best omnichannel experiences, today announced financial results for the three months and fiscal year ended March 31, 2025.

“Fiscal 2025 was a transformative year for Lightspeed: we delivered revenue growth of 18% with annual revenue exceeding $1 billion for the first time, we adopted a more focused strategy, concentrating on the markets where we have a proven right to win, and we aligned our organization to execute on that strategy,” said Dax Dasilva, Founder and CEO. “With a strong financial foundation and our industry-leading commerce platforms, Fiscal 2026 will be dedicated to growing locations, expanding software revenue and enhancing Adjusted EBITDA profitability.”

“Our healthy balance sheet, improving Adjusted EBITDA profitability and free cash flow nearing break-even enabled us to return ~$219 million of capital to shareholders in the last year,” said Asha Bakshani, CFO. “At the same time, we strategically invested in product and go-to-market for retail customers in North America and hospitality customers in Europe, laying the groundwork for continued success.”

Fourth Quarter Financial Highlights

(All comparisons are relative to the three-month period ended March 31, 2024 unless otherwise stated):

• Total revenue of $253.4 million, an increase of 10% year-over-year.
• Transaction-based revenue of $157.8 million, an increase of 14% year-over-year.
• Subscription revenue of $87.9 million, an increase of 8% year-over-year.
• Net loss of ($575.9) million, or ($3.79) per share, as compared to a net loss of ($32.5) million, or ($0.21) per share. Net loss includes a non-cash goodwill impairment charge of ($556.4) million. After adjusting for certain items, such as goodwill impairment and share-based compensation, the Company delivered an Adjusted Income³ of $15.0 million, or $0.10 per share³, as compared to Adjusted Income³ of $8.5 million, or $0.06 per share³.
• Adjusted EBITDA³ of $12.9 million versus Adjusted EBITDA³ of $4.4 million.
• Cash flows used in operating activities of ($9.9) million as compared to cash flows used in operating activities of ($28.5) million, and Adjusted Free Cash Flow³ used of ($9.3) million as compared to Adjusted Free Cash Flow³ used of ($16.3) million.
• As at March 31, 2025, Lightspeed had $558.5 million in cash and cash equivalents.

Full Fiscal Year Financial Highlights

(All comparisons are relative to the full fiscal year ended March 31, 2024 unless otherwise stated):

• Total revenue of $1,076.8 million, an increase of 18% year-over-year.
• Transaction-based revenue of $697.3 million, an increase of 28% year-over-year.
• Subscription revenue of $344.8 million, an increase of 7% year-over-year.
• Net Loss of ($667.2) million, or ($4.34) per share, as compared to a net loss of ($164.0) million, or ($1.07) per share. Net loss includes a non-cash goodwill impairment charge of ($556.4) million. After adjusting for certain items such as goodwill impairment and share-based compensation, the Company delivered an Adjusted Income³ of $69.5 million, or $0.45 per share³ as compared to an Adjusted Income³ of $24.5 million, or $0.16 per share³ in 2024.
• Adjusted EBITDA³ of $53.7 million versus Adjusted EBITDA³ of $1.3 million in 2024.
• Cash flows used in operating activities of ($32.8 million) as compared to cash flows used in operating activities of ($97.7 million), and Adjusted Free Cash Flow³ used of ($11.2) million as compared to Adjusted Free Cash Flow³ used of ($64.5) million in 2024.

Fourth Quarter Operational Highlights

• Lightspeed delivered several new product releases in the quarter including:
  • Seasonal trends and sales visualisations as part of Retail Insights, allowing merchants to forecast inventory with precision and interpret their data in visual formats;
  • Generative AI web builder, enabling retailers to generate websites from simple screenshots with no manual coding required;
  • Lightspeed NuORDER now includes PO Sync, a two-way sync to drive faster, automated replenishments for retailers and also now offers to connect multiple buyer accounts so that orders across different buying accounts seamlessly sync to the POS;
  • Omni gift cards were upgraded to allow retailers to sell and redeem gift cards across in-store and online selling channels;
  • Enhancements to Kitchen Display System, including advanced production instructions, which let servers add custom production instructions and allergen highlights to items, as well as consolidated item lists, which enable chefs in the kitchen to prepare items in batches when ordered from multiple tables.
• ARPU^1,4 increased to ~$489 from ~$431 in the same quarter last year representing an increase of 13% driven by our focus on our unified POS and payments offering and growing subscription ARPU¹ that increased 11%.
• Gross profit of $111.8 million increased 12% year over year. Overall gross margin was 44%, compared to 43% in the same quarter last year. Subscription gross margin grew to 81% in the quarter from 77% in the same quarter last year driven by a dedicated effort at controlling costs and targeted price increases. Transaction-based gross margin was 29% compared to 29% last year.
• Total GTV⁴ was $20.6 billion. An increasing portion of GTV is being processed through the Company’s payments solutions. GPV⁴ increased 19% to $7.9 billion in the quarter from $6.6 billion in the same period last year, largely due to the Company’s unified POS and payments initiative.
• Customer Locations with GTV exceeding $500,000/year⁵ and $1 million/year⁵ were flat and grew 2% year-over-year, respectively. Going forward, we are updating the definition of what constitutes a Customer Location. We have historically emphasized that a single unique customer can have multiple Customer Locations including physical and eCommerce sites, so eCommerce sites used by customers alongside a physical site have been counted as separate Customer Locations from the POS. As our POS and eCommerce solutions are packaged as a single omnichannel product, we believe this distinction has become less meaningful. Going forward, we will consider this product to be a single Customer Location. The end result is that the total number of Customer Locations⁴ changes from ~162,000 to ~144,000 as at March 31, 2025 while the monthly ARPU moves from ~$489 to ~$545. All Customer Location growth targets provided at the Company’s Capital Markets Day on March 26, 2025 were aligned with this new definition. For additional details, please refer to the Customer Locations Reconciliation table at the end of this press release.
• Lightspeed Capital showed strong growth with revenue increasing 28% year-over-year.
• Notable customer wins for retail customers in North America:
  • Runners Roost, Tennis Plaza, and WOODstack, retailers with advanced inventory requirements and multiple locations, selected Lightspeed Retail.
  • In our Supplier Network we added several new brands, including Birkenstock Australia, Crew Clothing, and Tea Collection.
• In golf, we signed California’s Half Moon Bay Golf Links, host to two world class championship courses.
• Notable customer wins for hospitality customers in Europe:
  • Lightspeed continued its winning streak with Michelin starred restaurants and chefs, signing La Vie in Dusseldorf, Zet’joe in Bruges, and Joelia in Rotterdam.
  • In addition, the Company added the 18 locations of Burger & Sauce in the UK and luxury hotel Le Relais de Chambord in France.
• Given the recent volatility in the valuations of technology companies broadly and Lightspeed’s share price, the carrying amount of the Company’s net assets exceeded its market capitalization as at March 31, 2025 which triggered an impairment test to be performed for the Company. The goodwill impairment test resulted in a non-cash impairment charge of ($556.4) million.
• Lightspeed hosted its Capital Markets Day on March 26, 2025, where the Company outlined its three-year strategy and transformation journey.
• Lightspeed completed a share repurchase program that saw the Company repurchase a total of ~9.7 million shares for ~$134.2 million during the course of Fiscal 2025. Subsequent to the quarter, the Company completed its latest share repurchase program, repurchasing ~9.0 million shares for ~$84.4 million. Collectively, over the last twelve months, Lightspeed has spent ~$219 million to acquire ~18.7 million shares, representing ~12% of the total shares outstanding as at April 1, 2024.
• The Company appointed Manon Brouillette to the role of Executive Chair and Dale Murray to the role of Lead Independent Director of its Board of Directors, in each case effective April 1, 2025, to coincide with the start of the Company’s fiscal year.

Financial Outlook⁶

The following outlook supersedes all prior statements made by the Company and is based on current expectations.

As announced at its Capital Markets Day in March, Lightspeed expects to grow its outbound sales team to over 150 outbound sales representatives by the end of Fiscal 2026 in addition to increasing its investment in product and technology development by over 35%⁷. The benefits of these investments will likely be reflected in the latter half of the year as the new sales representatives ramp through the year.

Lightspeed remains confident in its ability to execute its strategy of focusing on retail customers in North America and hospitality customers in Europe and expects to increase Customer Locations within these growth engines. With its increased investment in product and technology development, Lightspeed also expects to increase software revenue.

Finally, the financial outlook reflects our most recent view of the macroeconomic environment and is consistent with our three-year target gross profit CAGR⁸ of approximately 15-18% and three-year target Adjusted EBITDA³ CAGR⁸ of approximately 35% presented at our Capital Markets Day in March. Overall, the Company’s outlook is as follows:

First Quarter 2026

• Revenue of approximately $285 million to $290 million.
• Gross profit growth of approximately 13%.
• Adjusted EBITDA³ of approximately $14 million to $16 million.

Fiscal 2026

• Revenue growth of approximately 10% to 12%.
• Gross profit growth of approximately 14%.
• Adjusted EBITDA³ of approximately $68 million to $72 million.

Conference Call and Webcast Information

Lightspeed will host a conference call and webcast to discuss the Company’s financial results at 8:00 am ET on Thursday, May 22, 2025. To access the telephonic version of the conference call, visit https://registrations.events/direct/Q4I743164. After registering, instructions will be shared on how to join the call including dial-in information as well as a unique passcode and registrant ID. At the time of the call, registered participants will dial in using the numbers from the confirmation email, and upon entering their unique passcode and ID, will be entered directly into the conference. Alternatively, the webcast will be available live in the Events section of the Company’s Investor Relations website, https://investors.lightspeedhq.com/English/events-and-presentations/upcoming-events/.

Among other things, Lightspeed will discuss quarterly results, financial outlook and trends in its customer base on the conference call and webcast, and related materials will be made available on the Company’s website at https://investors.lightspeedhq.com. Investors should carefully review the factors, assumptions and uncertainties included in such related materials.

An audio replay of the call will also be available to investors beginning at approximately 11:00 a.m. Eastern Time on May 22, 2025 until 11:59 p.m. Eastern Time on May 29, 2025, by dialing 800.770.2030 for the U.S. or Canada, or 647.362.9199 for international callers and providing conference ID 74316. In addition, an archived webcast will be available on the Investors section of the Company’s website at https://investors.lightspeedhq.com.

Lightspeed’s audited annual consolidated financial statements and management’s discussion and analysis and annual information form for the fiscal year ended March 31, 2025 are available on Lightspeed’s website at https://investors.lightspeedhq.com and will be filed on SEDAR+ at www.sedarplus.com and on EDGAR at www.sec.gov. Shareholders may, upon request, receive a hard copy of the complete audited financial statements free of charge.

Financial Outlook Assumptions

When calculating the Adjusted EBITDA included in our financial outlook for the quarter ending June 30, 2025 and the full year ending March 31, 2026, we considered IFRS measures including revenues, direct cost of revenues, and operating expenses. Our financial outlook is based on a number of assumptions, including assumptions related to inflation, tariffs, changes in interest rates, consumer spending, foreign exchange rates and other macroeconomic conditions; that the jurisdictions in which Lightspeed has significant operations do not impose strict measures like those put in place in response to pandemics like the COVID-19 pandemic or other health crises; requests for subscription pauses and churn rates owing to business failures remain in line with planned levels; our Customer Location count remaining in line with our planned levels (particularly in higher GTV cohorts and among retail customers in North America and hospitality customers in Europe); quarterly subscription revenue growth in line with our expectations; revenue streams resulting from certain partner referrals remaining in line with our expectations (particularly in light of our decision to unify our POS and payments solutions, which payments solutions have in the past and may in the future, in some instances, be perceived by certain referral partners to be competing with their own solutions); customers adopting our payments solutions having an average GTV at our planned levels; continued uptake of our payments solutions in line with our expectations in connection with our ongoing efforts to sell our POS and payments solutions as one unified platform; our ability to price our payments solutions in line with our expectations and to achieve suitable margins and to execute on more optimized pricing structures; continued uptake of our merchant cash advance solutions in line with our expectations; our ability to manage default risks of our merchant cash advances in line with our expectations; seasonal trends of our key verticals being in line with our expectations and the resulting impact on our GTV and transaction-based revenues; continued success in module adoption expansion throughout our customer base; our ability to selectively pursue strategic opportunities and derive the benefits we expect from the acquisitions we have completed including expected synergies resulting from the prioritization of our flagship Lightspeed Retail and Lightspeed Restaurant offerings; market acceptance and adoption of our flagship offerings; our ability to attract and retain key personnel required to achieve our plans, including outbound and field sales personnel in our key markets; our ability to execute our succession planning; our expectations regarding the costs, timing and impact of our reorganizations and other cost reduction initiatives; our expectations regarding our growth strategy focused on retail customers in North America and hospitality customers in Europe and our strategies for customers in other geographies and verticals; our ability to manage customer churn; and our ability to manage customer discount requests. Our financial outlook does not give effect to the potential impact of acquisitions, divestitures or other strategic transactions that may be announced or closed after the date hereof. Our financial outlook, including the various underlying assumptions, constitutes forward-looking information and should be read in conjunction with the cautionary statement on forward-looking information below. Many factors may cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by such forward-looking information, including the risks and uncertainties related to: macroeconomic factors affecting small and medium-sized businesses, including inflation, tariffs, changes in interest rates and consumer spending trends; instability in the banking sector; exchange rate fluctuations and the use of hedging; any pandemic or global health crisis; the Russian invasion of Ukraine and reactions thereto; the Israel-Hamas war and reactions thereto; uncertainty and changes as a result of elections and changes in administrations in the U.S., Canada and Europe (including the impacts of tariffs, other trade conditions or protective government actions); certain natural disasters; our inability to attract and retain customers, including among high GTV customers and among retail customers in North America and hospitality customers in Europe; our inability to increase customer sales; our inability to implement our growth strategy; our inability to continue to increase adoption of our payments solutions, including our initiative to sell our POS and payments solutions as one unified platform; our ability to successfully execute our pricing and packaging initiatives; risks relating to our merchant cash advance program; our ability to continue offering merchant cash advances and scaling our merchant cash advance program in line with our expectations; our reliance on a small number of cloud service suppliers and suppliers for parts of the technology in our payments solutions; our ability to manage and maintain integrations between our platform and certain third-party platforms; our ability to maintain sufficient levels of hardware inventory; our inability to improve and enhance the functionality, performance, reliability, design, security and scalability of our platform; our ability to prevent and manage information security breaches or other cyber-security threats; our ability to compete against competitors; strategic relations with third parties; our reliance on integration of third-party payment processing solutions; compatibility of our solutions with third-party applications and systems; changes to technologies on which our platform is reliant; our ability to effectively incorporate artificial intelligence solutions into our business and operations; our ability to obtain, maintain and protect our intellectual property; risks relating to international operations, sales and use of our platform in various countries; our liquidity and capital resources; pending and threatened litigation and regulatory compliance; any external stakeholder activism; changes in tax laws and their application; our ability to expand our sales, marketing and support capability and capacity; our ability to execute on our reorganizations and cost reduction initiatives; our ability to execute on our growth strategy focused on retail customers in North America and hospitality customers in Europe and our strategies for customers in other geographies and verticals; our ability to successfully make future investments in our business through capital expenditures; our ability to successfully execute our capital allocation strategies; our ability to execute on our business and operational strategy; and maintaining our customer service levels and reputation. The purpose of the forward-looking information is to provide the reader with a description of management’s expectations regarding our financial performance and may not be appropriate for other purposes.

Long-Term Financial Outlook

Our long-term targets constitute financial outlook and forward-looking information within the meaning of applicable securities laws. The purpose of communicating long-term targets is to provide a description of management’s expectations regarding our intended operating model, financial performance and growth prospects at a further stage of business maturity. Such information may not be appropriate for other purposes.

A number of assumptions were made by the Company in preparing our long-term targets, including:

• Our expectations regarding our growth strategy for retail customers in North America and hospitality customers in Europe and our strategies for customers in other geographies and verticals.
• Economic conditions in our core geographies and verticals, including inflation, consumer confidence, disposable income, consumer spending, foreign exchange rates, employment and other macroeconomic conditions, remaining at close to current levels.
• Jurisdictions in which Lightspeed has significant operations do not impose strict measures like those put in place in response to pandemics like the COVID-19 pandemic.
• Customer adoption of our payments solutions in line with expectations, with new customers having an average GTV at or above planned levels.
• Our ability to price our payments solutions in line with our expectations and to achieve suitable margins and to execute on more optimized pricing structures.
• Continued uptake of our payments solutions in line with our expectations in connection with our ongoing efforts to sell our POS and payments solutions as one unified platform.
• Revenue streams resulting from certain partner referrals remaining in line with our expectations (particularly in light of our decision to unify our POS and payments solutions, which payments solutions have in the past and may in the future, in some instances, be perceived by certain referral partners to be competing with their own solutions).
• Our ability to manage default risks of our merchant cash advances in line with our expectations.
• Long-term growth in ARPU, including growth in subscription ARPU, in line with expectations, driven by Customer Location expansion in our growth engines, customer adoption of additional solutions and modules and the introduction of new solutions, modules and functionalities.
• Our ability to achieve higher close rates and better unit economics with customers in our growth engines.
• Our reallocation of investment over time towards our growth engines – retail customers in North America and hospitality customers in Europe.
• Our ability to price solutions and modules in line with our expectations.
• Our ability to recognize synergies and reinvest those synergies in core areas of the business as we prioritize our flagship Lightspeed Retail and Lightspeed Restaurant offerings.
• Our ability to scale our outbound and fields sales motions in our growth engines.
• Our ability to attract and retain customers and grow subscription ARPU in our addressable markets.
• The size of our addressable markets for our growth engines – retail in North America and hospitality in Europe – being in line with our expectations.
• Customer Location growth of ~10-15% (three year CAGR between fiscal 2025 and fiscal 2028) in our two growth engines – retail customers in North America and hospitality customers in Europe, excluding Customer Locations attributable to eCommerce sites.
• Our ability to selectively pursue strategic opportunities and derive the benefits we expect from the acquisitions we have completed including expected synergies resulting from the prioritization of our flagship Lightspeed Retail and Lightspeed Restaurant offerings.
• Market acceptance and adoption of our flagship offerings.
• Our ability to increase our operating efficiencies by consolidating infrastructure and hosting contracts with certain providers and consolidating certain service centers into lower cost geographies.
• Our ability to attract, develop and retain key personnel and our ability to execute our succession planning.
• Our expectations regarding the costs, timing and impact of our reorganizations and other cost reduction initiatives.
• The ability to effectively develop and expand our labour force, including our sales, marketing, support and product and technology operations, in each case both domestically and internationally, but particularly in our growth engines.
• Our ability to manage customer churn.
• Our ability to manage requests for subscription pauses, customer discounts and payment deferral requests.
• Assumptions as to foreign exchange rates and interest rates, including inflation.
• Share-based compensation declining as a percentage of revenue over time.
• Gross margin being within a range of ~42-45% over time.
• Seasonal trends of our key verticals being in line with our expectations and the resulting impact on our GTV and transaction-based revenues.

Our financial outlook does not give effect to the potential impact of acquisitions, divestitures or other strategic transactions that may be announced or closed after the date hereof. Many factors may cause actual results, level of activity, performance or achievements to differ materially from those expressed or implied by such targets, including risk factors identified in our most recent Management’s Discussion and Analysis of Financial Condition and Results of Operation and under “Risk Factors” in our most recent Annual Information Form. In particular, our long-term targets are subject to risks and uncertainties related to:

• Our ability to execute on our growth strategy focused on retail customers in North America and hospitality customers Europe and our strategies for customers in other geographies and verticals.
• The Russian invasion of Ukraine and reactions thereto.
• The Israel-Hamas war and reactions thereto.
• Uncertainty and changes as a result of elections and changes in administrations in the U.S., Canada and Europe (including the impacts of tariffs, trade wars, other trade conditions or protective government actions).
• Supply chain risk and the impact of shortages in the supply chain on our merchants.
• Macroeconomic factors affecting small and medium-sized businesses, including inflation, changes in interest rates and consumer spending trends.
• Instability in the banking sector.
• Any pandemic or global health crisis or certain natural disasters.
• Our ability to manage the impact of foreign currency fluctuations on our revenues and results of operations, including the use of hedging.
• Our ability to implement our growth strategy and the impact of competition.
• Our inability to attract and retain customers, including among high GTV customers or customers in our growth engines.
• Our inability to increase customer sales.
• Our ability to successfully execute our pricing and packaging initiatives.
• The substantial investments and expenditures required in the foreseeable future to expand our business, including over $50 million incremental investment in our product and technology roadmap in Fiscal 2026.
• Our liquidity and capital resources, including our ability to secure debt or equity financing on satisfactory terms.
• Our ability to increase scale and operating leverage.
• Our inability to continue to increase adoption of our payments solutions, including our initiative to sell our POS and payments solutions as one unified platform.
• Risks relating to our merchant cash advance program.
• Our ability to continue offering merchant cash advances and scaling our merchant cash advance program in line with our expectations.
• Our ability to further monetize our Lightspeed NuORDER offering.
• Our reliance on a small number of cloud service providers and suppliers for parts of the technology in our payments solutions.
• Our ability to improve and enhance the functionality, performance, reliability, design, security and scalability of our platform.
• Our ability to prevent and manage information security breaches or other cyber-security threats.
• Our ability to compete and satisfactorily price our solutions in a highly fragmented and competitive market.
• Strategic relations with third parties, including our reliance on integration of third-party payment processing solutions.
• Our ability to maintain sufficient levels of hardware inventory including any impacts resulting from tariffs, trade wars or supply chain disruptions.
• Our ability to manage and maintain integrations between our platform and certain third-party platforms.
• Compatibility of our solutions with third-party applications and systems.
• Changes to technologies on which our platform is reliant.
• Our ability to effectively incorporate artificial intelligence solutions into our business and operations.
• Our ability to obtain, maintain and protect our intellectual property.
• Risks relating to our international operations, sales and use of our platform in various countries.
• Seasonality in our business and in the business of our customers.
• Pending and threatened litigation and regulatory compliance.
• Any external stakeholder activism.
• Changes in tax laws and their application.
• Our ability to expand our sales capability (including employing over 150 outbound and field sales personnel in our growth engines by the end of Fiscal 2026) and maintain our customer service levels and reputation.
• Our ability to execute on our reorganizations and cost reduction initiatives.
• Our ability to successfully make future investments in our business through capital expenditures.
• Our ability to successfully execute our capital allocation strategies, including our share repurchase initiatives.
• Gross profit and operating expenses being measures determined in accordance with IFRS Accounting Standards, and the fact that such measures may be affected by unusual, extraordinary, or non-recurring items, or by items which do not otherwise reflect operating performance or which hinder period-to-period comparisons.
• Any potential acquisitions, divestitures or other strategic opportunities, some of which may be material in size or result in significant integration difficulties or expenditures, or otherwise impact our ability to achieve our long term targets on our intended timeline or at all.

See also the section entitled “Forward-Looking Statements” in this press release