Lightspeed Commerce (LSPD) Q2 2025 earnings summary

Executive summary

• Revenue grew 20% year-over-year to $277.2 million, surpassing guidance and marking a trailing 12-month revenue milestone of over $1 billion.

• Net loss improved to $29.7 million from $42.5 million year-over-year; Adjusted EBITDA was $14.0 million, exceeding outlook.

• Payments penetration increased to 37% from 25% year-over-year, driving record adjusted EBITDA.

• Product innovation accelerated, with new features in inventory management, payments, analytics, and multi-location ordering.

• Strategic focus sharpened on North American retail and European hospitality, targeting high-volume SMBs.

Financial highlights

• Transaction-based revenue rose 33% year-over-year to $183.8 million; subscription revenue increased 6% to $85.5 million.

• GPV grew 49% year-over-year to $8.8 billion; GTV reached $23.6 billion.

• Lightspeed Capital revenue more than doubled to $9.3 million, with 95%+ gross margins.

• Gross profit was $114.3 million, up 19% year-over-year; overall gross margin was 41%.

• Cash and equivalents ended at $659.0 million, with positive adjusted free cash flow and improved operating cash flows.

Outlook and guidance

• Q3 revenue expected between $280-$285 million and adjusted EBITDA of ~$14 million.

• Fiscal 2025 adjusted EBITDA guidance raised to at least $50 million; revenue growth outlook maintained at 20%+.

• Subscription revenue growth for H2 expected in the 8%-10% range, with momentum building into Q4.

• GPV as a percentage of GTV expected to reach 40%-45% by year-end.

• Subscription revenue growth rates expected to accelerate in Q3 as outbound teams expand and price increases take effect.