Lightspeed Commerce (LSPD) Q2 2025 earnings summary

Executive summary

• Revenue grew 20% year-over-year to $277.2 million, surpassing guidance, with record adjusted EBITDA of $14 million and net loss narrowing to $29.7 million from $42.5 million year-over-year.

• Trailing twelve-month revenue exceeded $1 billion, reflecting continued growth momentum.

• Payments penetration increased to 37% from 25% year-over-year, driving higher gross profit and improved margins.

• Strategic focus is shifting to North American retail and European hospitality, the largest and fastest-growing segments.

• The ongoing strategic review has led to the postponement of Capital Markets Day, with no further updates until required by regulation.

Financial highlights

• Transaction-based revenue rose 33% year-over-year to $183.8 million; subscription revenue increased 6% to $85.5 million, with subscription gross margin at 79%.

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

• Adjusted EBITDA improved to $14 million from $0.2 million year-over-year, and adjusted R&D, sales and marketing, and G&A expenses declined as a percentage of revenue.

• Cash and cash equivalents stood at $659.0 million as of September 30, 2024, with positive adjusted free cash flow and improved operating cash flows.

• 97% of Q2'25 revenue was recurring or reoccurring subscription and transaction-based revenue.

Outlook and guidance

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

• Fiscal 2025 adjusted EBITDA guidance raised to a minimum of $50 million, with revenue growth of at least 20%.

• Subscription revenue growth for the second half of fiscal year projected at 8%-10%, with momentum accelerating in Q4.

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

• Inflection point for growth in ideal customer profile (ICP) customers anticipated in fiscal 2026.