Lightspeed Sells Upserve Business Line for Up to $81M
Lightspeed Commerce announced the sale of its non-core Upserve U.S. hospitality product line to Skyview Equity for total cash consideration of up to $81M, $37M of which is subject to an earnout. The divestiture is consistent with Lightspeed's strategy to streamline its portfolio and concentrate on its two core growth engines of retail in North America and hospitality in Europe. The divested operations contributed ~$140M in total revenue, ~$26M in total gross profit, and ~$5B in total GTV2 for FY26. The transaction encompasses ~3,200 U.S. hospitality Customer Locations2 and ~70 employees, who are expected to join Skyview in connection with the sale. Lightspeed expects to deliver fiscal Q4 and FY26 revenue and gross profit that are ahead of the previously-established outlook and Adjusted EBITDA in line with the previously established outlook. In addition, for FY27, the Company expects to deliver Adjusted EBITDA of between $75M-$95M. The divestiture is also expected to impact the Company's three-year financial outlook5 presented at its Capital Markets Day in March 2025 by approximately 5% on the absolute value of each of gross profit, Adjusted EBITDA and Free Cash Flow for FY28. We expect the compound annual growth rate forecasts presented at Capital Markets Day to remain unchanged. Most importantly, as a non-core asset within the Company's efficiency markets, the divestiture of Upserve is consistent with Lightspeed's strategy and is expected to meaningfully improve the Company's revenue growth and gross profit growth trajectory. After removing the divested operations, approximately 75% of the Company's FY26 revenue was generated from the growth engines.
