Lightspeed Commerce (LSPD) Q3 2025 earnings summary

Executive summary

• Revenue grew 17% year-over-year to $280.1 million in Q3 FY25, with software/subscription revenue up 9% and transaction-based revenue up 23%.

• Adjusted EBITDA rose to $16.6 million, up over 350% year-over-year and ahead of guidance.

• Strategic review concluded with a transformation plan focused on North American retail and European hospitality, maintaining public company status as optimal for shareholder value.

• Announced a share repurchase program of up to $400 million, with $100 million to be executed immediately.

• Company-wide transformation program launched, including pricing, packaging, organizational redesign, and product innovation.

Financial highlights

• Q3'25 revenue reached $280.1 million, up 17% year-over-year; software/subscription revenue was $88.1 million (+9% YoY); transaction-based revenue was $181.7 million (+23% YoY).

• GPV for Q3'25 was $8.8 billion (+34% YoY); GTV was $23.5 billion (+23% YoY for flagship platforms).

• Adjusted EBITDA for Q3'25 was $16.6 million, up from $3.6 million in Q3'24.

• Net loss for Q3'25 was ($26.6) million, improved from ($40.2) million in Q3'24.

• ARPU increased 19% year-over-year to ~$533 (excluding Ecwid); software ARPU up 11%.

Outlook and guidance

• Fiscal 2025 revenue growth expected at approximately 20%.

• Adjusted EBITDA outlook raised to over $53 million, more than 30% above initial guidance.

• Full impact of price increases expected in Q1 of fiscal 2026; double-digit software revenue growth anticipated in fiscal 2026.

• Financial outlook based on assumptions regarding inflation, interest rates, consumer spending, and continued adoption of unified POS and payments solutions.

• Short-term headwinds include a strong US dollar and reduced go-to-market positions; positive returns expected in FY26 from reinvestment in growth markets.