Lightspeed Commerce (LSPD) Q1 2025 earnings summary

Executive summary

• Revenue grew 27% year-over-year to $266.1 million in Q1 FY2025, surpassing guidance, with gross profit up 23% and strong gains in transaction-based revenue and ARPU.

• Adjusted EBITDA was $10.2 million, a turnaround from a $7 million loss last year; net loss improved to $35.0 million from $48.7 million.

• Payments penetration rose to 36% from 22% year-over-year, driving improved profitability and ARPU growth.

• Focused on high GTV, sophisticated merchants, flagship product adoption, and notable new customer wins including Google’s GBike, Horkans, and Northgate Resorts.

• Share repurchases totaled 2.7 million shares for $39.9 million; cash and equivalents at quarter-end were $673.9 million.

Financial highlights

• Transaction-based revenue grew 44% to $174.1 million; subscription revenue increased 6% to $83.3 million, with subscription gross margin at 79%.

• Gross profit was $108.2 million, up 23% year-over-year; overall gross margin was 41%, slightly down due to higher payments adoption.

• GPV increased 64% to $8.4 billion, representing 36% of GTV; total GTV reached $23.6 billion.

• Lightspeed Capital revenue rose to $7.8 million, up 388% year-over-year.

• Adjusted income was $16.1 million, up from a $2.2 million loss last year.

Outlook and guidance

• Q2 FY2025 revenue expected between $270 million–$275 million; Adjusted EBITDA around $12 million.

• Fiscal 2025 guidance raised to at least 20% revenue growth and minimum Adjusted EBITDA of $45 million.

• Software revenue growth acceleration anticipated in the second half of the year due to outbound sales, pricing, and account manager focus.

• Near-term sales growth driven mainly by transaction-based revenue as payments adoption expands.