Lightspeed Commerce (LSPD) Q1 2026 earnings summary

Executive summary

• Revenue reached $305 million, up 15% year-over-year, exceeding guidance, with gross profit at $129.1 million, up 19% year-over-year, and gross margin improving to 42%.

• Adjusted EBITDA was $15.9 million, a 55% increase year-over-year, while net loss for the quarter was $49.6 million.

• Added 1,700 net new customer locations in growth engines, with total locations up to approximately 145,000 and ARPU rising 16% year-over-year to ~$655.

• Strategic focus on North American retail and European hospitality is driving growth, supported by product innovation including AI-powered tools and enhanced inventory management.

• Approximately 97% of revenue was recurring or reoccurring subscription and transaction-based.

Financial highlights

• Transaction-based revenue was $204.6 million, up 18% year-over-year; subscription/software revenue increased 9% to $90.9 million.

• Gross payments volume (GPV) grew 21% year-over-year to $10.2 billion, representing 41% of GTV; total GTV was $24.6 billion.

• Gross margin improved to 42% from 41% last year; software/subscription gross margin reached 81%.

• Transaction-based gross margin rose to 29% from 26% last year.

• Lightspeed Capital revenue grew 34% year-over-year.

Outlook and guidance

• Q2 2026 revenue expected between $305 million and $310 million, with gross profit growth of ~14% and Adjusted EBITDA of $17–$19 million.

• Fiscal 2026 revenue growth projected at 10–12% year-over-year, gross profit growth at 14%, and Adjusted EBITDA of $68–$72 million.

• Long-term targets include gross margin of 42–45% and Customer Location growth of 10–15% CAGR in core markets.

• Three-year gross profit CAGR targeted at 15–18%; adjusted EBITDA CAGR at 35%.