Lightspeed Commerce (LSPD) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 revenue surpassed $1.08 billion for the first time, growing 18% year-over-year, with Q4 revenue at $253.4 million, up 10% year-over-year and gross margin improving to 44%.

• Adjusted EBITDA reached $53.7 million for the year, up from $1.3 million, and Q4 Adjusted EBITDA was $12.9 million.

• Net loss for the year was $667.2 million, including a $556.4 million non-cash goodwill impairment in Q4.

• Strategic focus shifted to North American retail and European hospitality, driving customer and ARPU growth.

• Repurchased ~18.7 million shares (~12% of outstanding) for ~$219 million over the last 12 months.

Financial highlights

• Total annual revenue reached $1.077 billion, up 18% year-over-year; gross margin held steady at 42%.

• Q4 transaction-based revenue was $157.8 million (up 14%), subscription revenue $87.9 million (up 8%), and GPV rose 19% to $7.9 billion.

• Full-year transaction-based revenue was $697.3 million (up 28%), subscription revenue $344.8 million (up 7%).

• Q4 ARPU (excluding Ecwid) increased 13% year-over-year to ~$489.

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

Outlook and guidance

• Fiscal 2026 revenue expected to grow 10–12% year-over-year; gross profit growth of ~14%; Adjusted EBITDA guidance of $68–72 million.

• Q1 2026 revenue guidance: $285–290 million; gross profit growth ~13%; Adjusted EBITDA $14–16 million.

• Three-year gross profit CAGR targeted at 15–18%, Adjusted EBITDA CAGR at ~35%.

• Guidance incorporates conservative macro assumptions due to ongoing uncertainty.

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