Lightspeed Commerce Reports 15% Fourth Quarter Revenue Growth
The omnichannel platform generated $18.2 million in adjusted free cash flow for the fiscal year ended March 31, 2026.
Lightspeed Commerce Inc. (LSPD), a provider of POS and payments platforms for retail and hospitality businesses, reported fourth quarter revenue of $290.8 million, a 15% increase year-over-year. Gross profit for the period rose 15% to $129.1 million.
For the full fiscal year ended March 31, 2026, the company recorded total revenue of $1,227.0 million, up 14% from the previous year. Transaction-based revenue grew 17% to $815.1 million, while subscription revenue increased 8% to $370.7 million. The company reported a full-year net loss of $144.4 million, or $1.04 a share, compared to a net loss of $667.2 million, or $4.34 a share, in the prior year. The previous year's results included a non-cash goodwill impairment charge of $556.4 million.
Operational growth was concentrated in North American retail and European hospitality, where revenue grew 24% year-over-year. These segments added approximately 3,200 net customer locations during the fourth quarter, and gross transaction volume grew 19%. Lightspeed Capital also saw growth, with revenue increasing 73% year-over-year.
Profitability metrics improved over the fiscal year. Adjusted EBITDA rose to $72.5 million from $53.7 million in the prior year. Cash flow from operating activities shifted to $55.5 million, compared to $32.8 million used in the previous year. The company ended the fiscal year with $453.9 million in cash and cash equivalents.
Margins showed divergent trends in the fourth quarter. Subscription gross margin rose to 87% from 81% a year earlier, which the company attributed to a non-recurring cloud vendor rebate and the optimization of spend and headcount. Transaction-based gross margin increased to 31% from 29%. Overall gross margin remained flat at 44%.
Following the quarter, Lightspeed sold its non-core Upserve U.S. hospitality product line to Skyview Equity for total cash consideration of up to $81 million, including a $37 million earnout. The company appointed Leslie Martin as Chief Strategy and Transformation Officer to lead its internal transformation office.
Lightspeed updated its three-year targets to exclude Upserve. The company now estimates fiscal 2028 consolidated gross profit between $665 million and $685 million, with a gross margin of 43% to 46%. It expects a three-year compound annual growth rate for net customer locations of 10% to 15%.
The board authorized the renewal of a normal course issuer bid to repurchase up to approximately 10% of the public float as part of a broader share repurchase authorization for up to $400 million.