Lightspeed Commerce (LSPD) Q2 2026 earnings summary

Executive summary

• Revenue reached $319.0 million in Q2'26, up 15% year-over-year and above outlook, with gross profit up 18% to $135.2 million and gross margin improving to 42%.

• Adjusted EBITDA was $21.3 million, up 53% year-over-year, and Adjusted Free Cash Flow surged to $18.0 million from $1.6 million last year.

• Net loss for the quarter was $32.7 million, or $0.24 per share, while Adjusted Income was $22.2 million, or $0.16 per share.

• Added 2,000 new customer locations in key growth segments, with total customer locations reaching ~146,000.

• Strategic focus on North American retail and European hospitality, supported by AI-driven product innovation and targeted outbound sales.

Financial highlights

• Transaction-based revenue grew 17% year-over-year to $215.8 million; subscription/software revenue rose 9% to $93.5 million.

• Gross Payment Volume (GPV) was $10.8 billion, up 22% year-over-year; Gross Transaction Volume (GTV) reached $25.3 billion.

• ARPU increased 15% year-over-year to ~$685; subscription ARPU up 10%.

• Approximately 97% of revenue was recurring or reoccurring from subscriptions and transactions.

• Cash and cash equivalents stood at $462.5 million as of September 30, 2025.

Outlook and guidance

• Q3 2026 revenue guidance: $309–$312 million, with gross profit growth of at least 15% year-over-year and Adjusted EBITDA of $18–$20 million.

• Fiscal 2026 outlook raised: revenue growth of at least 12%, gross profit growth of at least 15%, and Adjusted EBITDA of at least $70 million.

• Targeting a three-year gross profit CAGR of 15–18% and adjusted EBITDA CAGR of 35%.

• Company expects to generate break-even or better Free Cash Flow in fiscal 2026.