Loading...
01/11 04:47
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial performance with record revenue, increased EBITDA, and improving margins. Product innovation and strategic investments in sales are expected to drive growth. The positive guidance and successful share repurchase program further support a positive sentiment. Despite some management uncertainties in Q&A, the overall outlook is optimistic, suggesting a positive stock price movement over the next two weeks.
Revenue $305 million, increased 15% year-over-year. Reasons: Driven by software ARPU expansion, increasing payments penetration, and improving same-store sales due to a more stable macro environment.
Gross Profit $129 million, increased 19% year-over-year. Reasons: Strong top-line performance, expanding gross margins in both subscription and transaction-based revenues, and cost discipline.
Payments Penetration 41%, up from 36% year-over-year. Reasons: Increased adoption of Lightspeed Payments and expansion in international markets.
Adjusted EBITDA $16 million, increased 55% year-over-year. Reasons: Success from strategic shift, operating efficiency, and investments in outbound sales and product innovation.
Customer Locations Approximately 145,000, up year-over-year. Growth engine locations increased by 5% year-over-year, with 1,700 net new customer locations added. Reasons: Improved go-to-market strategy and product investments.
Software Revenue $90.9 million, up 9% year-over-year. Reasons: New software releases, pricing actions taken last year, and product innovation.
Transaction-Based Revenue $204.6 million, up 18% year-over-year. Reasons: Gross payments volume grew 21% year-over-year, and capital revenue grew 34% year-over-year.
Gross Transaction Volume (GTV) $24.6 billion, grew 4% year-over-year. Reasons: Signing more high-value customers and growth in growth engine locations.
ARPU (Average Revenue Per User) $655, up 16% year-over-year. Reasons: Higher software and payments monetization, and growth in high-value customer locations.
Software Gross Margins 81%, up from 79% year-over-year. Reasons: Cost discipline and the mission-critical nature of the platform.
Transaction-Based Gross Margins 29%, up from 26% year-over-year. Reasons: Growth in capital business and expansion of payments in international markets.
Customer Inventory Adjustments: Allows for detailed tracking of stock changes.
Inventory Turns and Gross Margin Return on Investment: Added within Retail Insights for better inventory management.
Lightspeed Scanner App: Improved to allow for product search, inventory checks, and pricing.
Order Trends in NuORDER by Lightspeed: Helps merchants identify top-selling products by brand, leading to a 10% increase in average order value.
AI-powered Benchmarks & Trends: Launched in Europe for restaurateurs to compare performance with peers.
Mobile Tap on Lightspeed Tableside: Rolled out in the U.K., Netherlands, and Belgium to improve table turnover and service speed.
Enhanced Kitchen Display System: Features such as prep insights and menu updates added.
Lightspeed Pulse App: Deeper insights like bestsellers and top staff added.
New Sales Report Dashboard: Consolidates key metrics into a customizable real-time view for better planning and margin optimization.
North American Retail and European Hospitality: Focused growth engines with a 3-year customer location CAGR target of 10%-15%.
Customer Wins: Added notable customers like Neiman Marcus, Bergdorf Goodman, and Michelin-starred restaurants.
Revenue Growth: Achieved $305 million in revenue, a 15% year-over-year increase.
Gross Profit: Increased 19% year-over-year to $129 million.
Payments Penetration: Reached 41%, up from 36% last year.
Adjusted EBITDA: Improved 55% year-over-year to $16 million.
ARPU: Reached a record $655, up 16% year-over-year.
Strategic Focus: Shifted focus to North American retail and European hospitality as core growth engines.
Operational Efficiency: Achieved strong software gross margins of 81% and improved transaction-based revenue margins to 29%.
Capital Allocation: Repurchased $85 million in shares and used $30 million for RSU settlement obligations.
Market Conditions: The company acknowledges a fluid macro environment, which could impact revenue and growth projections. While the macro environment is currently stable, it remains a potential risk factor.
Competitive Pressures: The company faces competition in its core markets, as evidenced by the need to displace key competitors in retail and hospitality sectors. This could impact customer acquisition and retention.
Regulatory Hurdles: No explicit mention of regulatory challenges was made, but the company operates in multiple international markets, which could expose it to varying regulatory requirements.
Supply Chain Disruptions: No explicit mention of supply chain disruptions was made in the transcript.
Economic Uncertainties: The company benefits from a stable macro environment, but any economic downturns could affect same-store sales and overall revenue.
Strategic Execution Risks: The company is heavily investing in outbound sales, vertical marketing, and product innovation. However, the ramp-up time for outbound sales reps (approximately 6 months) and the need for disciplined funnel management pose execution risks.
Revenue Growth: For Q2 2026, total revenue is expected to be in the range of $305 million to $310 million. For fiscal 2026, revenue growth is projected at approximately 10% to 12% year-over-year.
Gross Profit Growth: For Q2 2026, total gross profit growth is expected to be approximately 14% year-over-year. For fiscal 2026, gross profit growth is projected at approximately 14% year-over-year.
Adjusted EBITDA: For Q2 2026, adjusted EBITDA is expected to be in the range of $17 million to $19 million. For fiscal 2026, adjusted EBITDA is projected to be in the range of $68 million to $72 million.
Customer Location Growth: The company targets a 3-year customer location CAGR of 10% to 15% in its core growth engines (North American retail and European hospitality). In Q1 2026, growth engine locations increased by 5% year-over-year, with expectations for further acceleration towards the 10%-15% target.
ARPU Growth: ARPU reached $655 in Q1 2026, up 16% year-over-year. Growth is expected to continue, driven by higher software and payments monetization, particularly in growth markets.
Payments Penetration: Payments penetration reached 41% in Q1 2026, up from 36% in the same quarter last year. Further growth in payments penetration is anticipated, especially in international markets where margins are higher.
Capital Allocation: The company has approximately $200 million remaining under its Board authorization for share repurchases and plans to continue opportunistic buybacks.
Share Repurchase Program: Lightspeed completed its fiscal 2026 normal course issuer bid of approximately 9 million shares, returning $85 million back to shareholders in the first quarter. Additionally, the company used $30 million to repurchase stock in the open market to fund future RSU settlement obligations, limiting share dilution upon settlement. Approximately $200 million remains under the broader Board authorization to repurchase up to $400 million in Lightspeed shares, and the company continues to be opportunistic on further share repurchases.
The company reported strong financial performance with a 53% increase in adjusted EBITDA and significant growth in free cash flow. Payments penetration and customer location growth are accelerating, and outbound sales are thriving. Positive trends in ARPU growth and strategic investments in growth engines further support a positive outlook. Although management was unclear on some specifics, the overall sentiment remains positive due to strong metrics and optimistic guidance. Given the company's market cap, a positive stock price movement of 2% to 8% is expected over the next two weeks.
The earnings call highlights strong financial performance with record revenue, increased EBITDA, and improving margins. Product innovation and strategic investments in sales are expected to drive growth. The positive guidance and successful share repurchase program further support a positive sentiment. Despite some management uncertainties in Q&A, the overall outlook is optimistic, suggesting a positive stock price movement over the next two weeks.
The earnings call highlighted positive financial performance with an 18% revenue growth and significant EBITDA increase. The Q&A session revealed management's confidence in growth strategies, including a large increase in outbound sales reps and R&D investment. Despite macro uncertainties, guidance remains optimistic with a focus on high-margin growth. The share repurchase plan and strong cash position further support a positive outlook. Given the $2.1 billion market cap, these factors suggest a positive stock price movement in the 2% to 8% range over the next two weeks.
The earnings call reflects a positive sentiment with strong financial performance, including an 18% revenue increase and significant EBITDA growth. The company has a robust share repurchase program, indicating confidence and shareholder value focus. Despite a goodwill impairment, the overall financial health is stable. The Q&A section suggests optimism for fiscal 2026, with expected revenue growth driven by strategic investments and a strong sales strategy. However, some macro uncertainties persist, which slightly tempers the outlook, leading to a positive but not strong positive rating.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
