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4w ago

Lightspeed Narrows Loss as Revenue and Cash Flow Improve

The sale of Upserve will free capital for location expansion, higher subscription revenue per user and AI product work to help meet revised multi‑year profit and cash targets.

The head of Lightspeed Commerce Inc. says the company is exploring how it can use generative artificial intelligence to help merchants using its products. Lightspeed Commerce offices are seen in Montreal, Thursday, Jan. 18, 2024. THE CANADIAN PRESS/Christinne Muschi

Overview

  • Lightspeed reported about US$291 million in revenue and a GAAP loss of US$28.6 million for the quarter, narrowing last year’s much larger impairment‑driven loss.
  • The company delivered US$129 million in gross profit and reached US$18 million in adjusted free cash flow for fiscal 2026, with adjusted EPS of US$0.08 per share.
  • Management said revenue from its defined growth engines rose 24% and gross profit from those engines grew 17%, and it will redeploy proceeds from the Upserve divestiture to those priorities.
  • Software revenue growth slowed to 9% this quarter from 13% previously, prompting analyst questions about go‑to‑market efficiency and how quickly new AI features will add subscription ARR and adjusted EBITDA.
  • Investors will watch execution on adding customer locations and raising subscription ARPU, since stronger location growth and higher recurring revenue are central to the company’s path to sustained adjusted profitability.