Financial Data and Key Metrics Changes - Fiscal year 2025 was a foundational year for the company, with significant strategic reviews conducted to maximize shareholder value [28] - Subscription revenues increased by 9% year over year, with gross profit dollars growing by 19% year over year [35] - Adjusted EBITDA improved to $15.9 million, up 55% year over year [35] Business Line Data and Key Metrics Changes - The company is focusing on two growth engines: retail in North America and hospitality in Europe, enhancing investments in go-to-market and product innovation [30][31] - Subscription ARPU increased by 10% in Q1, indicating successful product innovation and upselling efforts [34] Market Data and Key Metrics Changes - The North American retail market serves complex, high GDV retailers, while the European hospitality market is fragmented, where the company is already a leader [31][32] - The company aims to accelerate customer location growth through targeted outbound sales and vertical-specific marketing [34] Company Strategy and Development Direction - The company updated its mission statement to focus on fueling retail and hospitality ambitions with technology and insights [29] - A C-suite led transformation office has been established to drive execution across key priorities, with 11 work streams progressing [32] Management's Comments on Operating Environment and Future Outlook - Management believes the results demonstrate that the current strategy is working and that the company is on the right path [35] - The company has made significant efforts to return capital to shareholders, repurchasing approximately 18.7 million shares, reducing total shares outstanding by about 12% [36] Other Important Information - The company has an additional $200 million authorized for future share repurchases under its Board authorized share repurchase program [36] Q&A Session Summary - No questions were raised during the Q&A session, and management expressed gratitude to shareholders for their commitment and support [38][39]

Core Insights - For the quarter ended June 2025, Lightspeed Commerce Inc. reported revenue of $304.94 million, reflecting a year-over-year increase of 14.6% [1] - The earnings per share (EPS) for the quarter was $0.06, down from $0.10 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $286.85 million by 6.31%, while the EPS fell short of the consensus estimate of $0.11 by 45.45% [1] Revenue Breakdown - Subscription revenues were $90.86 million, surpassing the four-analyst average estimate of $90.07 million [4] - Hardware and other revenues reached $9.52 million, compared to the average estimate of $9.14 million from four analysts [4] - Transaction-based revenues amounted to $204.56 million, exceeding the average estimate of $188.13 million based on four analysts [4] Stock Performance - Shares of Lightspeed POS have returned +12.8% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Group 1: Earnings Performance - Lightspeed Commerce Inc. reported quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.11 per share, representing an earnings surprise of -45.45% [1] - The company posted revenues of $304.94 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 6.31%, compared to year-ago revenues of $266.09 million [2] - Over the last four quarters, Lightspeed has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Lightspeed POS shares have lost about 13.7% since the beginning of the year, while the S&P 500 has gained 8.2% [3] - The current consensus EPS estimate for the coming quarter is $0.12 on revenues of $299.29 million, and for the current fiscal year, it is $0.51 on revenues of $1.19 billion [7] - The estimate revisions trend for Lightspeed POS was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Group 3: Industry Context - The Internet - Software industry, to which Lightspeed belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $305 million, representing a 15% year-over-year increase, exceeding the high end of the company's outlook [7][17] - Gross profit reached $129 million, up 19% year-over-year, significantly above the 13% outlook [7][20] - Adjusted EBITDA was $16 million, reflecting a 55% increase year-over-year [7][22] - Payments penetration increased to 41%, up from 36% in the same quarter last year [7][19] Business Line Data and Key Metrics Changes - Software revenue grew 9% year-over-year, with software ARPU increasing by 10% [12][18] - Transaction-based revenue was $204.6 million, up 18% year-over-year [18] - Total gross profit margin improved to 42%, up from 41% last year [20][21] - The company added approximately 1,700 net new customer locations in its growth engines, with total growth engine locations up 5% year-over-year [8][9] Market Data and Key Metrics Changes - Gross payments volume grew 21% year-over-year, with capital revenue increasing by 34% [18] - GTV (Gross Transaction Volume) grew by 4% to $24.6 billion, with growth engine locations up by 5% year-over-year [19][20] - ARPU reached a record $655, up 16% year-over-year, driven by higher software and payments monetization [19] Company Strategy and Development Direction - The company is focusing on two core growth engines: retail in North America and hospitality in Europe, where it has a strong product-market fit and significant growth potential [6][7] - Strategic priorities include growing customer locations, expanding subscription ARPU, and improving adjusted EBITDA and free cash flow [8][9] - The company is investing in outbound sales and vertical marketing to enhance its go-to-market strategy [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and ability to execute despite a fluid macro environment [25] - The company expects total revenue growth of approximately 10% to 12% year-over-year for fiscal 2026, with gross profit growth of approximately 14% [26] - Management highlighted the importance of ongoing investments in sales and product innovation to drive future growth [91] Other Important Information - The company completed a normal course issuer bid, returning $85 million to shareholders in Q1 [23][110] - The cash balance at the end of Q1 was approximately $448 million, with $200 million remaining under the board's authorization for share repurchases [24][110] Q&A Session Summary Question: Subscription revenue growth and pricing initiatives - Management acknowledged that the 9% software growth was solid and attributed it to new customer additions and pricing initiatives from the previous year [28][30] Question: Expectations for location growth - Management expects location growth to converge towards a 10% to 15% CAGR by fiscal 2028, driven by ramping outbound sales efforts [33][35] Question: Drivers of Q1 revenue and gross profit - Management confirmed that Q1 results were driven by solid execution and that there were no one-time factors affecting the results [40][43] Question: Same store sales dynamics - Hospitality same store sales outperformed North American retail, with double-digit growth in European hospitality [47][48] Question: AI impact on retail and hospitality - Management discussed the use of AI to automate tasks and drive insights, enhancing operational efficiency for merchants [53][55] Question: Capital allocation and buyback strategy - Management confirmed that the pace of share buybacks would continue to be opportunistic, with $200 million remaining for future repurchases [111][110]

Q1 2026 Financial Highlights - Revenue reached $304.9 million, a 15% increase year-over-year[10] - Gross Payment Volume (GPV) totaled $10.2 billion, representing a 21% year-over-year growth[10] - Gross Transaction Volume (GTV) amounted to $24.6 billion[10] - Approximately 97% of revenue is recurring or transaction-based[10] - Average Revenue Per User (ARPU) grew by 16% to approximately $655[10] - Gross profit increased by 19% year-over-year to $129.1 million[13] Fiscal Year 2026 Outlook - The company anticipates approximately 10%-12% revenue growth for fiscal year 2026[15] - The company anticipates approximately 14% gross profit growth for fiscal year 2026[15] - The company anticipates approximately $68 - $72 million Adjusted EBITDA for fiscal year 2026[15] Payment Solutions - Gross Payment Volume (GPV) has a 52% Compound Annual Growth Rate (CAGR)[21] - Q1 2026 Gross Payment Volume (GPV) reached $10.2 billion, a 21% year-over-year increase[27] - Q1 2026 Gross Transaction Volume (GTV) reached $24.6 billion[26]

This MD&A contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information may relate to our financial outlook and anticipated events or results and may include information regarding our financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information reg ...

Core Insights - Lightspeed Commerce Inc. reported total revenue of $304.9 million for the quarter, representing a 15% year-over-year growth and exceeding expectations [1] - The company achieved a gross margin of 42%, with gross profit increasing by 19% year-over-year, also surpassing outlook [1] - The company added approximately 1,700 net Customer Locations in North America and Europe, contributing to a total of around 145,000 Customer Locations, which is a 5% increase year-over-year [1][10] - Gross Payment Volume (GPV) grew by 21% year-over-year, reaching $10.2 billion, with GPV as a percentage of Gross Transaction Volume (GTV) at 41% [1][10] Financial Performance - Total revenue for the quarter was $304.9 million, with transaction-based revenue at $204.6 million (up 18% year-over-year) and subscription revenue at $90.9 million (up 9% year-over-year) [6] - The net loss for the quarter was $49.6 million, or $0.35 per share, compared to a net loss of $35.0 million, or $0.23 per share in the previous year [6] - Adjusted EBITDA for the quarter was $15.9 million, an increase from $10.2 million in the same period last year [6] Operational Highlights - The company launched several new product features, including enhanced inventory tracking and AI-powered insights for hospitality in Europe [6][10] - Average Revenue Per User (ARPU) increased by 16% to approximately $655, driven by software price increases and greater adoption of payment solutions [10] - The company completed a share repurchase program, buying back approximately 9 million shares for about $85.4 million [10] Strategic Outlook - Lightspeed remains focused on expanding its customer base in retail and hospitality sectors, particularly in North America and Europe [8] - The company anticipates revenue for the second quarter of 2026 to be between $305 million and $310 million, reflecting confidence in its growth strategy [9] - Long-term targets include a gross profit CAGR of approximately 15-18% and an Adjusted EBITDA CAGR of approximately 35% over the next three years [9]

Core Insights - Lightspeed is enhancing its product offerings to meet the evolving needs of merchants in retail, hospitality, and golf industries, focusing on intelligent tools for better business management [1] Retail - New features introduced by Lightspeed aim to address industry challenges, improve operational efficiency, and enhance customer engagement [2] - The "Order Trends" feature in NuORDER by Lightspeed provides buyers with data-driven insights, leading to a 10% increase in average order value for early adopters [2] - Custom Inventory Adjustments and new financial metrics like Inventory Turns and GMROI are now available, with users of Lightspeed Insights seeing a 25.4% higher GMROI compared to those not using it [3][19] - The Lightspeed Retail SuiteApp has achieved "Built for NetSuite" status, facilitating better data integration and visibility for retailers [4] - Enhanced omnichannel management features allow for seamless order tracking and custom online checkout charges [5] Hospitality - Lightspeed Restaurant's AI-powered Benchmarks and Trends feature is now available in Europe, helping restaurant owners understand their performance relative to competitors [6] - The upgraded Lightspeed Tableside mobile POS allows servers to take orders and payments directly at the table, improving service speed and efficiency [7][8] - Lightspeed Pulse provides real-time sales insights, enabling restaurateurs to track sales trends and performance easily [9] - New updates to kitchen operations and menu management streamline processes, enhancing overall efficiency [10] - A new Sales Report feature consolidates key sales insights, allowing operators to analyze performance by specific shifts [11] Golf - Lightspeed has partnered with Whoosh to enhance private golf operations, providing integrated membership management and real-time insights for clubs [12]

Company Performance - Lightspeed Commerce Inc. closed at $11.48, down 2.21% from the previous trading session, underperforming the S&P 500's loss of 0.33% [1] - Over the past month, shares of Lightspeed gained 2.09%, lagging behind the Computer and Technology sector's gain of 5.24% and the S&P 500's gain of 4.07% [1] Upcoming Earnings - The company is set to release earnings on July 31, 2025, with projected earnings of $0.11 per share, reflecting a year-over-year growth of 10% [2] - Revenue is expected to be $286.85 million, indicating a 7.8% growth compared to the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $0.51 per share and revenue at $1.19 billion, representing increases of 13.33% and 10.44% respectively from the prior year [3] Analyst Estimates - Recent changes to analyst estimates for Lightspeed suggest a favorable outlook on the company's business health and profitability [4] - The Zacks Consensus EPS estimate has remained stagnant over the past month, with Lightspeed currently holding a Zacks Rank of 3 (Hold) [6] Valuation Metrics - Lightspeed is trading at a Forward P/E ratio of 22.94, which is a discount compared to the industry average Forward P/E of 28.6 [7] - The company has a PEG ratio of 1.4, while the Internet - Software industry has an average PEG ratio of 2.21 [7] Industry Context - The Internet - Software industry is part of the Computer and Technology sector, currently holding a Zacks Industry Rank of 67, placing it in the top 28% of over 250 industries [8]

Core Viewpoint - Lightspeed Commerce Inc. will report its first quarter 2026 financial results on July 31, 2025, and will host a conference call to discuss these results [1][2]. Company Overview - Lightspeed is a unified omnichannel platform that supports retail and hospitality businesses in over 100 countries [1][3]. - The company provides a comprehensive suite of services including point of sale, ecommerce, embedded payments, inventory management, reporting, and financial services [4]. Upcoming Financial Results - The financial results will be announced before the market opens on July 31, 2025, with a conference call scheduled for 8:00 am ET on the same day [1][2]. - Participants can register for the call in advance and will receive instructions via email [2]. Company Background - Founded in 2005 in Montréal, Canada, Lightspeed is dual-listed on the NYSE and TSX [5]. - The company has teams located across North America, Europe, and Asia Pacific [5].