Lightspeed 2025 Q4 Earnings Surpasses Revenue Expectations Despite Wider Net Loss

Lightspeed (LSPD) reported its fiscal 2025 Q4 earnings on May 22nd, 2025. The company's revenue exceeded analyst expectations, reaching $253.4 million compared to the anticipated $251.3 million. Despite the revenue beat, Lightspeed's losses deepened, primarily due to a significant non-cash goodwill impairment charge. Guidance for fiscal 2026 remains positive, with expected revenue growth of 10% to 12% year-over-year and adjusted EBITDA projected between $68 million to $72 million.

Revenue

Lightspeed's total revenue for the fourth quarter increased by 10.1% year-over-year, reaching $253.42 million, up from $230.22 million in the previous year. Transaction-based revenue saw a 14% growth to $157.8 million, while subscription revenue rose by 8% to $87.9 million.

Earnings/Net Income

The company's losses widened significantly, with a net loss of $575.94 million in Q4 2025, compared to a $32.54 million loss in Q4 2024. Earnings per share fell sharply to a loss of $3.93, primarily affected by a non-cash goodwill impairment charge. The EPS performance reflects ongoing financial challenges.

Price Action

Lightspeed's stock price experienced a decline of 5% on the latest trading day, marking a 7.40% drop over the past week, although it has increased by 3.24% month-to-date.

Post-Earnings Price Action Review

The strategy of buying LSPD shares following a revenue miss and holding for 30 days has proven ineffective, resulting in substantial losses. Backtesting showed a strategy return of -86.92% against a benchmark return of 28.99%, with a Sharpe ratio of -0.65, indicating poor risk-adjusted returns. The strategy's maximum drawdown was -91.56%, with volatility at 66.67%, revealing high risk without generating positive returns. Investors should exercise caution and consider alternative approaches.

CEO Commentary

Dax Dasilva, Founder and CEO, described fiscal 2025 as transformative, with Lightspeed achieving over $1 billion in annual revenue for the first time. The company restructured for profitable growth and repurchased 12% of its shares. Despite macroeconomic uncertainties, Dasilva remains optimistic about fiscal 2026, focusing on enhancing sales and accelerating product innovation.

Guidance

For fiscal 2026, Lightspeed anticipates revenue growth between 10% and 12% year-over-year, with gross profit growth around 14%. Adjusted EBITDA is projected to range from $68 million to $72 million. The company expects first-quarter revenue between $285 million and $290 million, with adjusted EBITDA between $14 million and $16 million.

Additional News

Lightspeed Commerce (LSPD) has announced a major share buyback program of up to $400 million, reflecting confidence in its growth strategy. The program includes an immediate repurchase of $100 million worth of shares. Additionally, the company appointed Manon Brouillette as Executive Chair and Dale Murray as Lead Independent Director, effective April 1, 2025. These leadership changes align with Lightspeed's strategic focus on enhancing its operations and expanding its presence in North America and Europe. The plans emphasize profitable growth, aiming to increase software and payments penetration while optimizing business efficiency.