Montréal-based Lightspeed Commerce reported nearly $305 million USD in revenue and over $129 million in gross profit for the first quarter of fiscal 2026.
The point-of-sale and commerce technology firm achieved 15% revenue growth and 19% gross profit growth year-over-year, surpassing its previous outlook for both metrics according to its latest earnings report.
Despite exceeding forecasts, Lightspeed’s share price fell over 5% on the Toronto and New York Stock Exchanges. Analysts told The Globe and Mail that faster growth is needed to renew investor interest.
Dasilva credited Lightspeed’s success to targeting key markets and a supportive macro environment.
Lightspeed founder and CEO Dax Dasilva stated the company is “winning where it matters,” thanks to high-quality locations and “solid top-line growth with expanded margins,” attributing success to product innovation and a revised go-to-market strategy for fiscal Q1’s performance.
In an interview with BetaKit, Dasilva noted fiscal Q1 demonstrates both growth and increased profitability. He attributed this to focus on top markets and a supportive economic environment as consumer spending stabilized. He also mentioned improved consumer sentiment.
Hospitality spending in Europe was a “bright spot,” with strong outdoor sporting goods and bicycle sales in North America, following previous down years after an early pandemic bike boom.
In fiscal Q1, Lightspeed added around 1,700 new customer locations across North American retail and European hospitality, totaling 90,000 in those markets and 145,000 overall.
Dasilva attributed Lightspeed’s margins and growth success partly to artificial intelligence across products and internal operations.
Lightspeed’s adjusted EBITDA was nearly $16 million, just below the top end of its estimate, marking a 55% year-over-year increase, with Dasilva calling it “a clear sign that our model is working.”
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Dasilva told BetaKit that Lightspeed is moving towards adjusted free cash flow breakeven quarterly. However, the firm posted a net loss of almost $50 million, partly due to share-based compensation, closing fiscal Q1 with about $448 million in cash and equivalents.
Lightspeed’s stock trades nearly 90% below its pandemic high in September 2021, affected by a broader tech downturn and a critical short-seller report in October 2021.
Dasilva returned as CEO in 2024 aiming for profitability and exceeding $1 billion revenue in fiscal 2025, since conducting a strategic review, additional layoffs, and refocusing on its strongest markets to balance growth and profitability to recapture investor interest.
In February, Lightspeed announced plans to stay public and execute a transformative plan, including a $400-million share buyback. Profitable growth remains key, further detailed in an interview with BetaKit, and more on strategy shared in March. In fiscal 2026, location growth, gross profit, and adjusted EBITDA improvement are priorities.
Dasilva said aggressive investments in sales and marketing should pay off as they ramp up.
RELATED: Lightspeed to expand and revamp sales team as part of revised go-to-market effort
For fiscal Q2, Lightspeed predicts $305 million to $310 million revenue, 14% gross profit growth, and $17 million to $19 million adjusted EBITDA. Fiscal 2026 outlook remains unchanged amid economic uncertainty.
Lightspeed plans to continue executing its strategy, adding to target markets, and retaining revenue elsewhere.
Lightspeed and other Canadian tech stocks have fluctuated with US tariff developments. The US plans to suspend the de minimis exemption, potentially affecting international sellers, including Lightspeed’s retail clients.
Dasilva said Lightspeed customers addressed trade and tariff issues this year by diversifying supply chains.
He noted the de minimis rollback would mostly affect in-store North American retail revenue and has limited visibility on tariff change impacts but doesn’t expect significant effects.
Feature image courtesy Lightspeed Commerce.