Lightspeed Commerce (LSPD) Investor update summary

Strategic focus and divestiture rationale

• Announced divestment of the Upserve U.S. Hospitality product line to Skyview Equity to sharpen focus on core growth areas and improve gross margins and profitability.

• Transaction aligns with a strategy to concentrate on retail in North America and hospitality in Europe, where the company sees the strongest growth potential.

• Upserve's analytics technology, foundational to Lightspeed Insights, will be retained and further developed as a key competitive advantage.

• After divestiture, about 75% of Fiscal 2026 revenue comes from core growth engines.

Transaction details and financial impact

• Deal valued up to $81 million: $44 million in cash (with $20 million paid at closing, remainder within 90 days) and up to $37 million in earn-outs over 24 months based on performance milestones.

• Divestiture reduces fiscal 2026 revenue by ~$140 million, gross profit by ~$26 million, and GPV by ~$5 billion.

• Approximately 3,200 U.S. hospitality customer locations and 70 team members transition as part of the deal.

• The transaction closed at the end of the previous business day.

Guidance and outlook

• Fiscal Q4 and full year 2026 revenue and gross profit expected to exceed prior outlook, with adjusted EBITDA in line.

• Fiscal 2027 adjusted EBITDA projected at $75–$95 million, a step up from fiscal 2026.

• Three-year financial goals (to fiscal 2028) will see a ~5% reduction in absolute gross profit, adjusted EBITDA, and free cash flow, but growth rates remain unchanged.

• Long-term targets include gross margin of ~42-45% and Adjusted EBITDA growing to -20% of gross profit by Fiscal 2028.