Lightspeed(US:LSPD)2025-11-06 12:25Revenue Growth - Transaction-based revenue for the three months ended September 30, 2025, was $215.8 million, an increase of 17% from $183.8 million for the same period in 2024[17]. - Total revenue increased to $319.0 million for the three months ended September 30, 2025, representing a year-over-year growth of approximately 15%[22]. - Subscription revenue accounted for 29% of total revenues for the three months ended September 30, 2025, while transaction-based revenue accounted for 68%[22]. - Subscription revenues increased to $93,543,000 in Q3 2025, up from $85,536,000 in Q3 2024, representing a growth of 11.8%[68]. - Transaction-based revenues rose to $215,766,000 in Q3 2025, compared to $183,751,000 in Q3 2024, marking a growth of 17.4%[68]. - Total revenues for Q3 2025 reached $318,963,000, an increase of 15.1% from $277,182,000 in Q3 2024[68]. Payment Volume and Transaction Metrics - Gross Payment Volume (GPV) for the three months ended September 30, 2025, was $10.8 billion, representing a growth of 22% compared to $8.8 billion for the same period in 2024[20]. - The cloud-based software-as-a-service platform processed Gross Transaction Value (GTV) of $25.3 billion for the three months ended September 30, 2025, a 7% increase from $23.6 billion for the same period in 2024[20]. - Gross Payment Volume (GPV) for the six months ended September 30, 2025, was $21.0 billion, up 22% from $17.2 billion for the same period in 2024[31]. - Gross Transaction Volume (GTV) for the six months ended September 30, 2025, was $49.9 billion, representing an increase of 6% compared to $47.2 billion for the same period in 2024[38]. Customer and Market Focus - The company targets sophisticated small and medium-sized businesses (SMBs) with a focus on retail customers in North America and hospitality customers in Europe[14]. - As of September 30, 2025, the company had customer locations in over 100 countries, primarily in North America and Europe[20]. - The company plans to continue investments in Lightspeed NuORDER and expand market share among retail customers in North America and hospitality customers in Europe[24]. - The company plans to focus on increasing market penetration among retail customers in North America and hospitality customers in Europe[49]. Financial Performance and Losses - Operating loss for the six months ended September 30, 2025, was $78.7 million, compared to an operating loss of $82.0 million for the same period in 2024[26]. - Net loss for Q3 2025 was $(32,700,000), an increase from $(29,655,000) in Q3 2024, indicating a 6.9% increase in losses[42]. - Adjusted EBITDA for Q3 2025 was $21,339,000, compared to $13,955,000 in Q3 2024, representing a 53.5% increase year-over-year[40]. - Cash flows from operating activities for Q3 2025 were $25,541,000, compared to $(11,311,000) in Q3 2024, indicating a positive turnaround[44]. Expenses and Cost Management - Direct costs of revenues for the three months ended September 30, 2025, totaled $183.80 million, an increase of $20.9 million or 12.8% year-over-year[77]. - General and administrative expenses for Q3 2025 decreased by $2.1 million or 6.9% compared to Q3 2024, with a percentage of total revenues dropping from 11.3% to 9.1%[88]. - Research and development expenses for Q3 2025 increased by $2.2 million or 7.1% compared to Q3 2024, with share-based compensation rising to $7.2 million from $5.7 million[90]. - Sales and marketing expenses for Q3 2025 increased by $4.7 million or 7.1% compared to Q3 2024, with a percentage of total revenues decreasing from 23.7% to 22.1%[92]. Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2025, were $462.5 million, down from $659.0 million as of September 30, 2024, a decrease of 29.8%[126]. - Working capital surplus as of September 30, 2025, was $544.6 million, indicating strong liquidity to meet short-term growth requirements[118]. - Cash flows from operating activities for Q3 2025 were $25.5 million, a significant increase from cash flows used of $11.3 million in Q3 2024, resulting in an improvement of $16.4 million[127]. - Adjusted Free Cash Flow for the six months ended September 30, 2025 was $16.3 million, compared to a cash outflow of $1.4 million for the same period in 2024, marking a $17.7 million improvement[129]. Strategic Initiatives and Investments - The unified POS and payments solutions strategy began in Fiscal 2024, leading to increased payments penetration and improved customer experience[17]. - The company continues to invest in expanding its catalog content and streamlining operational tasks for retailers[16]. - The Lightspeed Capital program provides cash advances to eligible merchants to support their business growth and cash management[18]. - The company plans to invest in product development and sales to enhance its platform and increase customer engagement[52]. Economic and Market Conditions - The company is monitoring macroeconomic conditions, including inflation and changes in consumer spending, which may impact its operations[29]. - Economic conditions, including inflation and unemployment rates, may adversely affect consumer spending and, consequently, the company's financial performance[56]. Shareholder and Stock Information - The weighted average number of common shares outstanding for Q3 2025 was 137,730,160, down from 153,551,716 in Q3 2024[42]. - The company repurchased and canceled 9,013,953 Subordinate Voting Shares for a total consideration of $85.4 million during the six months ended September 30, 2025[122]. - As of November 4, 2025, Lightspeed had 135,983,621 Subordinate Voting Shares issued and outstanding, net of 2,399,345 shares held in trust[161]. Internal Controls and Governance - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of September 30, 2025[167]. - No changes were identified that materially affected the Company's internal controls over financial reporting during the period covered in the quarterly report[169]. - The internal control framework is designed to provide reasonable assurance regarding the reliability of financial reporting in accordance with IFRS Accounting Standards[168].