Q1 FY2027
Filed Jul 30, 2026First quarter revenue of $322.7 million and organic revenue growth of 17%, exceeded outlook; gross profit of $138.6 million and organic gross profit growth of 12%.
Revenue exceeded outlook, organic revenue growth was 17%, gross profit grew 12% organically, Adjusted EBITDA increased to $17.5 million, and the IFRS net loss narrowed to ($2.4) million. Cash conversion weakened year over year, gross margin was affected by lower hardware margins, and the company maintained rather than raised its Fiscal 2027 outlook.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueother | $322.7 million | – | 17% organic growth year-over-year; 6% growth year-over-year as reported |
| Subscription revenueother | $95.4 million | – | 8% organic growth year-over-year; 5% growth year-over-year as reported |
| Transaction-based revenueother | $214.5 million | – | 20% organic growth year-over-year; 5% growth year-over-year as reported |
| Hardware and other revenueother | $12,807 thousand US dollars | – | – |
| Total direct cost of revenuesother | $184,145 thousand US dollars | – | – |
| Gross profitother | $138.6 million | – | 12% organic gross profit growth year-over-year; 7% growth year-over-year as reported |
| Gross marginother | 43% | – | – |
| Subscription gross marginother | 83% | – | – |
| Transaction-based gross marginother | 32% | – | – |
| General and administrative expensesother | $29,484 thousand US dollars | – | – |
| Research and development expensesother | $31,856 thousand US dollars | – | – |
| Sales and marketing expensesother | $72,338 thousand US dollars | – | – |
| Total operating expensesother | $144,100 thousand US dollars | – | – |
| Operating lossother | ($5,541) thousand US dollars | – | – |
| Net interest income (expense)other | $4,940 thousand US dollars | – | – |
| Loss before income taxesother | ($601) thousand US dollars | – | – |
| Income tax expenseother | $1,820 thousand US dollars | – | – |
| Net lossother | ($2.4) million | – | – |
| Net loss per share – basic and dilutedother | ($0.02) per share | – | – |
| Adjusted Incomenon-GAAP | $17.4 million | – | – |
| Adjusted Income per Share – Basic and Dilutednon-GAAP | $0.13 per share | – | – |
| Adjusted EBITDAnon-GAAP | $17.5 million | – | – |
| Adjusted EBITDA as a percentage of gross profitnon-GAAP | 12.6% | – | – |
| Cash flows from operating activitiesother | $0.1 million | – | – |
| Adjusted Free Cash Flownon-GAAP | ($4.4) million used | – | – |
| Cash and cash equivalentsother | $372.1 million | – | – |
| Total GTVother | $25.7 billion | – | 9% organic growth year-over-year; 5% growth year-over-year as reported |
| GPVother | $11.3 billion | – | 20% organic growth year-over-year; 11% growth year-over-year as reported |
| GPV as a percentage of GTVother | 44% | – | – |
| Total ARPUother | ~$676 | – | 13% organic ARPU growth year-over-year; 3% ARPU growth year-over-year as reported |
| Organic subscription ARPU growthother | 6% year-over-year | – | 6% year-over-year |
| Total Customer Locationsother | approximately 146,000 | – | – |
| Lightspeed Capital revenueother | $14.5 million | – | 56% organic growth; 39% growth as reported |
| Total Revenue at Constant Currencynon-GAAP | $317,731 thousand US dollars | – | 4.2% |
| Non-IFRS gross profitnon-GAAP | $139,078 thousand US dollars | – | – |
| Non-IFRS gross profit as a percentage of revenuenon-GAAP | 43.1% | – | – |
| Non-IFRS general and administrative expensesnon-GAAP | $25,353 thousand US dollars | – | – |
| Non-IFRS research and development expensesnon-GAAP | $26,192 thousand US dollars | – | – |
| Non-IFRS sales and marketing expensesnon-GAAP | $70,010 thousand US dollars | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| SubscriptionOrganic subscription ARPU growth was 6% year-over-year; subscription gross margin grew to 83% from 81%. | $95.4 million | – | 8% organic growth year-over-year; 5% growth year-over-year as reported |
| Transaction-basedA growing portion of GTV was processed through the Company's payments solutions; GPV increased to $11.3 billion. | $214.5 million | – | 20% organic growth year-over-year; 5% growth year-over-year as reported |
| Hardware and otherGross margin was negatively impacted by lower hardware margins. | $12,807 thousand US dollars | – | – |
| Retail in North America and hospitality in Europe growth enginesSubscription revenue increased 12% year-over-year, GTV grew 14% year-over-year, GPV as a percentage of GTV was 49%, and Customer Locations increased by approximately 1,300 in the quarter to approximately 99,000. | Revenue grew 20% year-over-year | – | 20% year-over-year |
Second Quarter Fiscal 2027 and Fiscal 2027 outlook
- RevenueSecond Quarter Fiscal 2027: $316 million to $326 million representing organic revenue growth of 12% to 16%. Fiscal 2027: $1,225 million to $1,265 million representing organic revenue growth of 12% to 15%.
- NoteSecond Quarter Fiscal 2027 gross profit of $141 million to $146 million representing organic gross profit growth of 10% to 14%.
- NoteSecond Quarter Fiscal 2027 Adjusted EBITDA of $20 million to $25 million.
- NoteFiscal 2027 gross profit of $565 million to $585 million representing organic gross profit growth of 12% to 16%.
- NoteFiscal 2027 Adjusted EBITDA of $75 million to $95 million.
- NoteFor Fiscal 2027, Adjusted Free Cash Flow is expected to show significant growth over Fiscal 2026.
- NoteThree-year Adjusted Free Cash Flow target of $95 million for Fiscal 2028.
- NoteCustomer Location growth of ~10-15% three-year CAGR between Fiscal 2025 and Fiscal 2028 in the two growth engines.
- NoteGross margin being within a range of ~43-46% over time.
- NoteAdjusted EBITDA growing to ~20% of gross profit by Fiscal 2028.
Capital returns
- Lightspeed repurchased ~$86 million worth of shares in the quarter.
- ~7 million shares were repurchased and cancelled pursuant to the normal course issuer bid.
- ~2.2 million shares were repurchased on the open market for future settlement of equity incentive awards.
- Shares repurchased and cancelled were ($65,586) thousand US dollars.
- Shares repurchased for settlement of non-treasury RSUs and non-treasury PSUs were ($21,133) thousand US dollars.
What drove it
- The divestiture of Upserve on April 28, 2026 affects year-over-year comparability, and management provided organic growth rates to facilitate comparison.
- GPV increased to $11.3 billion and GPV as a percentage of GTV was 44%, reflecting a growing portion of GTV processed through payments solutions.
- Total ARPU increased to ~$676, driven by expanding payments adoption, greater adoption of software modules, and signing more high-GTV customers.
- Retail in North America and hospitality in Europe generated revenue growth of 20% year-over-year and added approximately 1,300 net Customer Locations during the quarter.
- Lightspeed Capital revenue was $14.5 million, representing organic growth of 56%.
- The company announced product releases including Klaviyo integration, AI features for Lightspeed Retail and Lightspeed Restaurant, and Locations Manager for Lightspeed Restaurant.
Concerns
- Reported revenue growth of 6% year-over-year was below organic revenue growth of 17% because the current period reflected Upserve only through its April 28, 2026 divestiture date while the prior-year period included a full three months of Upserve.
- Overall gross margin was 43%, and management stated gross margin was negatively impacted by lower hardware margins.
- Cash flows from operating activities declined to $0.1 million from $12.4 million, while Adjusted Free Cash Flow used increased to $4.4 million from $1.7 million.
- Sales and marketing expenses were $72,338 thousand US dollars compared with $67,880 thousand US dollars.
- Restructuring expense was $3,688 thousand US dollars compared with $1,210 thousand US dollars.
- Fiscal 2027 outlook was maintained rather than increased despite the company describing a strong start.
What to watch
- Execution against Second Quarter Fiscal 2027 revenue guidance of $316 million to $326 million and Adjusted EBITDA guidance of $20 million to $25 million.
- Progress toward Fiscal 2027 organic revenue growth of 12% to 15% and organic gross profit growth of 12% to 16%.
- GPV growth, GPV as a percentage of GTV, and adoption of the unified POS and payments offering.
- Customer Location growth and subscription revenue growth in retail in North America and hospitality in Europe.
- Hardware margin improvement, which management expects in the second half of the fiscal year.
- Adjusted Free Cash Flow progression toward the $95 million Fiscal 2028 target and the effect of capitalized internal development costs and merchant cash advances.
Balance sheet and cash flow
- Cash and cash equivalents were $372.1 million as at June 30, 2026, compared with $453,906 thousand US dollars as at March 31, 2026.
- Total assets were $1,589,101 thousand US dollars as at June 30, 2026, compared with $1,665,222 thousand US dollars as at March 31, 2026.
- Total liabilities were $199,392 thousand US dollars as at June 30, 2026, compared with $182,070 thousand US dollars as at March 31, 2026.
- Merchant cash advances were $116,480 thousand US dollars as at June 30, 2026, compared with $118,442 thousand US dollars as at March 31, 2026.
- Cash flows from operating activities were $0.1 million, compared with $12.4 million.
- Additions to intangible assets were ($16,171) thousand US dollars, compared with ($10,515) thousand US dollars.
- Additions to property and equipment were ($1,708) thousand US dollars, compared with ($1,804) thousand US dollars.
- Sale of business, net of cash disposed and costs of disposal paid, was $19,069 thousand US dollars.
- Net decrease in cash and cash equivalents during the period was ($81,770) thousand US dollars.
- No debt balance was reported in the condensed interim consolidated balance sheet.
Analysis
Lightspeed reported a solid start to Fiscal 2027. Total revenue was $322.7 million, with organic revenue growth of 17% and reported growth of 6%, and management said revenue exceeded outlook. The distinction is material because Upserve was divested on April 28, 2026: the prior-year period included a full three months of Upserve, while the current period included it only through the divestiture date. Gross profit was $138.6 million, up 12% organically and 7% as reported.
The core growth engines, retail in North America and hospitality in Europe, remained the primary operating strength. Revenue in those businesses grew 20% year over year, GTV grew 14%, and Customer Locations increased by approximately 1,300 to approximately 99,000. Payments monetization also advanced, with GPV rising to $11.3 billion and GPV as a percentage of GTV reaching 44%. Total ARPU increased to ~$676, with management attributing the increase to payments adoption, software module adoption, and more high-GTV customers.
Profitability improved materially on an IFRS basis, although the company remained loss-making. Net loss narrowed to ($2.4) million from ($49.6) million, while Adjusted Income rose to $17.4 million from $7.9 million and Adjusted EBITDA increased to $17.5 million from $15.9 million. Overall gross margin was 43%, compared with 45% on an organic basis in the prior-year period, and management identified lower hardware margins as a negative factor. Subscription gross margin improved to 83%, while transaction-based gross margin increased to 32% from 31% on an organic basis.
Cash flow was the principal offset to the earnings improvement. Cash flows from operating activities were $0.1 million, down from $12.4 million, and Adjusted Free Cash Flow used was $4.4 million compared with $1.7 million used. Cash and cash equivalents ended at $372.1 million. The company returned capital through approximately $86 million of share repurchases, including approximately 7 million shares repurchased and cancelled, while its reported cash balance declined from $453,906 thousand US dollars at March 31, 2026.
Management maintained its existing Fiscal 2027 outlook. It guided second-quarter revenue of $316 million to $326 million, gross profit of $141 million to $146 million, and Adjusted EBITDA of $20 million to $25 million. Full-year guidance calls for revenue of $1,225 million to $1,265 million, gross profit of $565 million to $585 million, and Adjusted EBITDA of $75 million to $95 million. The company continues to target $95 million of Adjusted Free Cash Flow for Fiscal 2028 and expects hardware margins to improve in the second half of the fiscal year.
Management, verbatim
Fiscal 2027 is off to a strong start for Lightspeed, with revenue ahead of our outlook, and solid progress across our strategic priorities.
Dax Dasilva, Founder and CEO
Our first-quarter results reflect strong execution across our strategic priorities, with accelerating organic software growth, continued momentum in our growth engines and record payments penetration.
Asha Bakshani, CFO
We also executed on our share repurchase program, repurchasing and cancelling seven million shares in the quarter, while continuing to position the business for durable growth and long-term shareholder value.
Asha Bakshani, CFO
Not in the filing
stated, not guessed- Previous-release outlook was not provided; therefore no comparison of actual results with prior guidance is available.
- Quarterly operating expense guidance was not provided.
- Tax-rate guidance was not provided.
- GAAP or IFRS operating income was not reported; the filing reported an operating loss of ($5,541) thousand US dollars.
- Debt balance was not reported in the condensed interim consolidated balance sheet.
- Dividend amount or dividend policy was not reported.
- Prior-quarter comparisons for income statement, revenue-category, margin, KPI, and non-IFRS metrics were not reported.
- Revenue by geography, product platform, or reportable operating segment was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.