Lightspeed Commerce (LSPD) Q1 2027 earnings summary

Executive summary

• Q1 FY2027 revenue reached $323 million, up 17% year-over-year, with gross profit of $139 million, up 12%.

• Net loss narrowed to $2.4 million from $49.6 million a year ago, and adjusted EBITDA was $17.5 million, up from $15.9 million.

• Payments penetration rose to 44% overall and 49% in growth engines, reflecting strong adoption and monetization.

• Share repurchases returned $86 million to shareholders, reducing share count by 4% and cancelling 7 million shares.

• Focus remains on growing high-quality customer locations, expanding ARPU, and improving profitability and free cash flow.

Financial highlights

• Total revenue grew 17% year-over-year to $322.7 million, exceeding the 10%-14% organic growth outlook.

• Transaction-based revenue was $214.5 million, up 20% year-over-year; software/subscription revenue was $95.4 million, up 8%.

• Gross margin was 43%, down from 45% due to higher transaction-based revenue mix and temporary hardware margin compression.

• Software/subscription gross margin improved to 83% from 81% a year ago, aided by AI-driven support efficiencies.

• Adjusted Free Cash Flow used was $4.4 million, impacted by working capital.

Outlook and guidance

• Fiscal 2027 revenue expected at $1.225–$1.265 billion (12%–15% organic growth); gross profit $565–$585 million (12%–16% growth); adjusted EBITDA $75–$95 million.

• Q2 2027 revenue guidance is $316–$326 million, gross profit $141–$146 million, and adjusted EBITDA $20–$25 million.

• Free cash flow for fiscal 2027 expected to show significant growth over 2026, with a three-year target of $95 million by fiscal 2028.