Financial Performance Exceeds Expectations
The company’s financial performance highlights strong operational leverage, with gross profit rising 19% year-over-year to $129.1 million. Gross margin improved to 42%, up from 41% a year ago, reflecting the company’s focus on operational efficiency and strategic pricing. Subscription gross margins also increased to 81%, up from 79%.
Asha Bakshani, CFO: “Lightspeed had a great start to the year with revenue and gross profit exceeding our previously-established outlook,” said. “Our strong Adjusted EBITDA growth is evidence of the leverage we are seeing in our business model as well as our relentless operating efficiency, allowing us to invest in our business while also delivering higher profitability.”
Revenue diversification remained firm, with transaction-based revenue growing 18% to $204.6 million and subscription revenue increasing 9% to $90.9 million. The company’s Adjusted EBITDA reached $15.9 million, a marked improvement from $10.2 million in the prior year quarter.
Strategic Growth Engines Take Hold
Dax Dasilva, Founder and CEO: “Lightspeed is winning where it matters — we added high-quality locations, increased ARPU, and delivered solid top-line growth with expanded margins,” said. “We’re seeing strong impact from our product innovation and go-to-market execution, and our focused strategy is gaining traction and delivering profitable growth.”
The company’s core growth engines, retail customers in North America and hospitality customers in Europe, are delivering results, with approximately 1,700 net customer locations added during the quarter. That’s a 5% year-over-year increase to around 90,000 locations in these segments. In total, customer locations across all markets reached approximately 145,000.
Average Revenue Per User (ARPU) showed strong momentum, climbing 16% to about $655 from $567 in the same quarter last year. This growth is attributed to software price increases and greater adoption of Lightspeed’s integrated payments offering.
Payment Solutions Drive Transaction Growth
Lightspeed’s payments solutions nabbed more market share, with Gross Payment Volume (GPV) up 21% year-over-year to $10.2 billion. GPV as a percentage of Gross Transaction Volume hit 41%, showing the growing adoption of the company’s unified POS and payments platform. Total GTV reached $24.6 billion, increasing 4% year-over-year.
The company’s capital services division recorded healthy growth as well, with Lightspeed Capital revenue increasing 34% year-over-year. This demonstrates the expanding ecosystem of financial services that Lightspeed is providing to its merchants.
Product Innovation and Customer Wins
This quarter was marked by major product releases, including enhanced inventory tracking with Custom Inventory Adjustments, AI-powered Benchmarks & Trends for hospitality customers in Europe, and Mobile Tap on Lightspeed Tableside in the UK, Netherlands, and Belgium.
Customer wins included Last Stop, a premium streetwear retailer with 10 locations in Maryland and Virginia, and prominent brands like Tory Burch and Fabletics added to the NuORDER platform. In hospitality, Lightspeed welcomed storied names such as La Petite Chaise, Paris’s oldest restaurant operating since 1680, and two Michelin-starred Aan de Poel in Amsterdam.
Financial Strength and Capital Allocation
Lightspeed ended the quarter with $447.6 million in cash and cash equivalents as of June 30, 2025. The company followed through with disciplined capital allocation, completing a share repurchase program by buying back and cancelling around 9.0 million shares for $85.4 million.
Cash flows from operating activities turned positive at $12.4 million, up from negative $14.2 million a year ago, showing growing financial resilience.
Positive Forward Outlook
Lightspeed gave upbeat guidance for the remainder of fiscal 2026. For the second quarter, it expects revenue of about $305 to $310 million, gross profit growth of 14%, and Adjusted EBITDA of $17 to $19 million. The full-year outlook projects revenue growth of 10 to 12%, gross profit up by 14%, and Adjusted EBITDA between $68 and $72 million.
Leadership was bolstered with Glen LeBlanc joining the Board of Directors on July 1, 2025, bringing over thirty years of experience in telecommunications and technology.
Lightspeed’s first-quarter results show the strength of its focus on retail in North America and hospitality in Europe, while its unified omnichannel platform continues to deliver value through product innovation and operational discipline.
