Lightspeed Commerce (LSPD) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 revenue surpassed $1 billion for the first time, growing 18% year-over-year to $1.077 billion, with adjusted EBITDA reaching $53.7 million and Q4 revenue up 10% to $253.4 million.

• The company realigned its focus to North American retail and European hospitality, supported by organizational restructuring, leadership changes, and a targeted outbound sales strategy.

• Share repurchases totaled ~18.7 million shares (~12% of outstanding), returning ~$219 million to investors over the last 12 months.

• Product innovation accelerated with new modules, AI-driven tools, and platform enhancements, improving customer value and operational efficiency.

• A significant non-cash goodwill impairment charge of $556.4 million in Q4 led to a full-year net loss of $667.2 million.

Financial highlights

• Total annual revenue reached $1.077 billion, up 18% year-over-year, with gross margins steady at 42% and Q4 gross margin improving to 44%.

• Adjusted EBITDA rose from $1.3 million to $53.7 million year-over-year; Q4 Adjusted EBITDA was $12.9 million.

• Q4 transaction-based revenue grew 14% to $157.8 million; subscription revenue up 8% to $87.9 million.

• GPV for Q4 was $7.9 billion (up 19%), and GTV reached $20.6 billion.

• Ended Q4 with $558 million in cash after significant share buybacks and merchant cash advances.

Outlook and guidance

• Fiscal 2026 revenue growth expected at 10–12% year-over-year, gross profit growth at ~14%, and adjusted EBITDA between $68–72 million.

• Q1 2026 guidance: revenue of $285–290 million, gross profit growth of ~13%, and adjusted EBITDA of $14–16 million.

• Three-year targets: gross profit CAGR of 15–18%, adjusted EBITDA CAGR of ~35%.

• Increased investment in outbound sales and product development, with benefits expected in the latter half of the year.