Lightspeed Commerce Inc. has announced exceptionally strong Q1 earnings for the first quarter of fiscal year 2026, demonstrating robust financial performance that exceeded its initial outlook. The unified omnichannel platform, a key player in powering ambitious retail and hospitality businesses across over 100 countries, showcased significant business growth and expanded profitability, signaling a triumphant start to its fiscal year.
Key financial highlights reveal total revenue soaring to $304.9 million, marking a substantial 15% year-over-year increase and surpassing projections. This impressive top-line growth was supported by transaction-based revenue jumping 18% to $204.6 million and subscription revenue growing 9% to $90.9 million. Furthermore, the company improved its gross margin to 42%, with gross profit expanding by 19% year-over-year, underscoring efficient operations and strategic pricing.
Operational successes underpinned these financial achievements, with Lightspeed adding approximately 1,700 net customer locations, primarily within its strategic growth engines of North American retail and European hospitality. This expansion contributed to a total of around 145,000 customer locations globally, reflecting consistent year-over-year growth. The Gross Payment Volume (GPV) surged by 21% to $10.2 billion, indicating increasing adoption of Lightspeed’s integrated payment solutions and a rising average revenue per user (ARPU), which climbed 16% to approximately $655.
Dax Dasilva, Founder and CEO, articulated the company’s focus on “winning where it matters,” emphasizing the addition of high-quality locations and increased ARPU as drivers of solid top-line growth and margin expansion. CFO Asha Bakshani highlighted the strong Adjusted EBITDA growth as evidence of the business model’s leverage and relentless operating efficiency, enabling sustained investment while delivering higher profitability.
The quarter also saw significant product innovation across Lightspeed’s retail technology and hospitality solutions. Enhancements included custom inventory adjustments and new insights like Inventory Turns and GMROI for retail, and an improved Lightspeed Scanner App. For hospitality, AI-powered Benchmarks & Trends were launched in Europe, alongside Mobile Tap on Lightspeed Tableside in key European markets, all designed to streamline operations and boost sales for businesses.
Strategic customer acquisitions further solidified Lightspeed’s market position, with notable retail wins including Last Stop and Shades of Charleston in North America, and prominent brands like Tory Burch and Fabletics through NuORDER by Lightspeed. In hospitality, prestigious establishments like La Petite Chaise in Paris and two Michelin-starred Aan de Poel in Amsterdam joined the platform, demonstrating Lightspeed’s appeal to diverse and high-value clients. The company also demonstrated strong capital management through share repurchases and strengthened its board with the appointment of Glen LeBlanc.
Looking ahead, Lightspeed provided a positive financial outlook for Q2 2026, projecting revenues between $305 million to $310 million and Adjusted EBITDA of $17 million to $19 million. For the full fiscal year 2026, revenue growth is anticipated between 10% to 12%, with Adjusted EBITDA reaching $68 million to $72 million. These projections align with long-term targets of 15-18% gross profit CAGR and 35% Adjusted EBITDA CAGR, reflecting confidence in their strategic direction and market execution.
Lightspeed continues to position itself as the essential POS and payments partner for ambitious entrepreneurs, offering a comprehensive suite of tools that unify point of sale, eCommerce, inventory, and financial services. Its commitment to fast, flexible omnichannel technology and expert support empowers businesses to accelerate growth, deliver exceptional customer experiences, and operate more efficiently across global markets, reinforcing its leadership in the retail technology and hospitality solutions sectors.
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