#Canada #Montreal #financial results #Lightspeed Commerce #Fiscal 2026

Lightspeed Releases 2025 Financial Results

Montreal-based Lightspeed Commerce Inc. recently revealed its financial outcomes for the fourth quarter and entire fiscal year ending March 31, 2025. Notably, the company's total revenue reached $1,076.8 million for the year, marking an 18% increase from the previous year. In the fourth quarter alone, revenue showed a growth of 10% year-over-year, amounting to $253.4 million.

Key Highlights from the Year

• - Gross Margin and Profit: The gross margin improved to 44%, with gross profit rising 12% compared to the previous year. Monthly Average Revenue Per User (ARPU) also saw a robust increase of 13%, now sitting at approximately $489. Furthermore, subscription ARPU experienced growth of 11%, underscoring the firm's successful upselling efforts to existing clients.
• - Share Buybacks: Throughout the last twelve months, Lightspeed repurchased about 18.7 million shares, representing roughly 12% of its total outstanding shares, amounting to around $219 million spent on this initiative.

Dax Dasilva, the founder and CEO, highlighted the year as transformative for Lightspeed. He mentioned, "We adopted a more focused strategy, concentrating on markets where we possess a proven advantage, aligning our organization accordingly. With robust finances and top-tier commerce platforms, Fiscal 2026 will focus on growing our locations and enhancing profitability."

Fourth Quarter Financial Performance

The fourth quarter results shed light on specific areas of growth:

• - Transaction and Subscription Revenue: Transaction-based revenue reached $157.8 million, marking a 14% increase year-over-year, while subscription revenue was $87.9 million, up 8% year-over-year.
• - Net Loss Reported: Despite the revenue growth, the company reported a net loss of $575.9 million in Q4, significantly higher than the $32.5 million loss from the same quarter in the previous year. This figure included a non-cash goodwill impairment charge of $556.4 million.
• - Adjusted Income and EBITDA: Adjusted Income rose to $15 million, or $0.10 per share, compared to $8.5 million, while Adjusted EBITDA surged to $12.9 million from the previous $4.4 million.

Strategic Direction for 2026

Looking ahead, Lightspeed is poised for continued progress. As detailed during its Capital Markets Day held on March 26, 2025, the company plans to expand its outbound sales team to over 150 by the end of Fiscal 2026 and increase its investment in product and technology by over 35%. These initiatives aim to bolster its focus on retail clients in North America and hospitality clients in Europe, accelerating growth in those sectors.

Conclusion

Lightspeed's unwavering growth trajectory coupled with strategic investments positions the company advantageously for the future. The fiscal outlook for 2026 includes revenue expectations between $285 million to $290 million for the first quarter, and the company anticipates maintaining an overall revenue growth of 10% to 12% by the end of the fiscal year.

With a commitment to innovation and efficiency, Lightspeed continues to serve the global economy by empowering merchants to enhance customer experience across multiple channels. The company remains dedicated to delivering strong financial performance and shareholder value in the years ahead.