Lightspeed Commerce's Q4 2025: Navigating Contradictions in Growth Drivers, Supply Chains, and Profitability

Growth drivers beyond unified payments, macroeconomic uncertainties and growth impact, integrated payments strategy and penetration, gross profit growth drivers, and impact of supply chain constraints are the key contradictions discussed in Lightspeed Commerce's latest 2025Q4 earnings call



Revenue and Growth Milestones:
- Lightspeed reported exceeding $1 billion in annual revenue for the first time, delivering $53.7 million in adjusted EBITDA, achieving a 18% revenue growth.
- This growth was driven by the realignment of its business strategy to focus on retail in North America and hospitality in Europe, along with innovations like retail insights and Kitchen Display Systems.

Outbound Sales Strategy:
- Customer locations in growth markets grew over 3%, with GTV for these customers increasing by 6%.
- Lightspeed is investing in scaling its outbound sales capacity, aiming to double its outbound sales team to 150 reps by the end of fiscal '26.
- The increase in March's outbound revenue reflects the effectiveness of outbound sales strategies, targeting high-value merchants.

Software ARPU and Pricing:
- Software ARPU grew 11% year-over-year, driven by deeper module adoption and pricing initiatives.
- Lightspeed plans to invest 35% more in product development, focusing on retail and hospitality markets to accelerate innovation and ARPU expansion.

Profitability and Financial Performance:
- Adjusted EBITDA grew from $1.3 million in the previous year to $53.7 million in fiscal '25, reflecting disciplined cost management.
- The company continues to return capital to shareholders, repurchasing a total of 18.7 million shares, representing about 12% of shares outstanding.